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HomeMy WebLinkAbout13-City Administrator CITY OF SAN BERrQRDINO - REQUEST ~1our.c1L ACTION" From: Fred A. Wi lson Subject: VEHICLE POOl. COSTS Assistant to City Administrator City Administrator Dept: Date: August 24, 1989 Synopsis of Previous Council action: June 21, 1989 -- Staff was directed to review vehicle pool costs and report back to the Mayor and Common Council. :7; tJ n, C"') ~ .d (;'j ;:;:1 , '" ~ Cc.> t'c :-~:.~ 'N:; ~' ?e -- c:~ ~'! C) c'; Recommended motion: That the attached report relative to vehicle pool costs be received and filed. Signature Contact person:__ Fred A. Wilson Phone: 384-5l22 Supporting data attached: Yes Ward: FUNDING REOUIREMENTS: Amount: Source: (Acct. No.) (Acct. Description) Finance: Council Notes: 75-0262 Agenda Item No /3 - CITY' OF SAN BERNQ.DINO - REQUEST & COUNCIL ACTION STAFF REPORT During the budget sessions, concern was expressed relative to how the vehicle pool charges are assessed against departments. There was a misunderstanding at the Budget Hearings that departments were being charged a fee of up to $50 per day for vehicle pool usage. Staff was directed to review these charges and report back to Council. The actual charge which is assessed against a department for vehicle pool usage is 21 cents per mile and 86 cents per hour (maximum daily charge is 8 hours per day, even though the vehicle is kept overnight). These figures were derived from the City of Riverside's vehicle pool rates. According to the Finance Director, vehicle pool usage is being charged against the departmental garage charges line item account for FY 89/90 since a specific expenditure account for vehicle pool usage was not established. For fiscal year 1990/91, a specific vehicle pool usage account will be established. In order to compare these figures with industry standards, a publication developed by the Automobile Club entitled "Your Driving Costs" was reviewed. This publication provides national statistics on a per mile cost basis for certain types of vehicles. These statistics were provided for 3 types of vehicles at 3 different annual mileage rates as noted below: Drivinq Costs 10.000 mi 15.000 mi 20.000 mi 1. Compact - 24.3 cents - 20.6 cents - 18.3 cents Mid-size Sedan 32.6 cents - 25.7 cents - 23.0 cents Sedan 33.6 cents - 27.4 cents - 24.3 cents Composite Cost 30.2 cents - 24.6 cents - 2l.9 cents The Automobile Club's study was undertaken in 1987 and used cars which were equipped with standard and optional accessories including automatic transmission and power brakes and steering. Gasoline costs were based on a 93.2' cents per gallon charge. Insurance figures were based on personal use of vehicles, with no youthful drivers. 75-0264 o o Updated to 1989 costs, using a 5% inflationary factor, the composite cost would be: 10.000 mi 15.000 mi 20.000 mi 33.3 cents 27.1 cents 24.2 cents since most of the vehicles in the Vehicle Pool could be classified as Sedans, and it was projected that they would be driven approximately 10,000 miles per year, the figure of 33.3 cents per mile was considered as the comparative base. This shows that the city's Vehicle Pool rates are comparable to industry standards. statistics were developed by the Telecommunications Division relative to vehicle pool usage since the program initiated in May 1989. Highlights of these statistics include: o 285 request for vehicles have been received. o 2 hours is the average length of time a vehicle is "checked out". o 12 requests were received to keep a overnight (overnight checkout could nights) . vehicle pool car include multiple o 17.5 miles is the average mileage incurred by a vehicle which is "checked out". Using these statistics as a base and 33.3 cents per mile, the average against a department for vehicle pool the composite cost of cost which is charged usage would be $5.40. Whenever vehicles assigned to a department are being serviced by the garage and, as a consequence, out of service a request can be made for a loaner car from the Garage. At the present time, only one vehicle is available for loan purposes. It was noted that approximately 4-5 unmarked police vehicles are being replaced by newer units. These older units will eventually be transferred to the vehicle pool and the older existing vehicle pool cars will be transferred to the garage to be used as loan vehicles to accommodate servicing needs of the regular fleet. Departments which use the garage vehicles are charged the same rate as vehicle pool cars. If more than one vehicle is currently being serviced, departments are requested to use a vehicle from the vehicle pool. From the statistics which were reviewed, 12 requests were received for overnight use. It should be noted that 8 hours per day is the maximum hourly charge (plus mileage) which is assessed against a department for overnight use. It was also suggested that rental car agencies be considered as an alternative to using a vehicle pool car for extended periods. Although these agencies have rates which can start as low as $14.95 a day, there are other additional costs which have to be considered. These costs include mileage costs, gasoline charges and insurance costs which can range , 'n 0 anywhere from $5.~ to $13.00 per day depending on the level of coverage selected. The compilation of these costs coupled with the general availability of vehicle pool cars as well as loaner vehicles from the garage suggests that this is an option which is not worth pursuing at this time. Adoption of the form motion is recommended. A. ILSON ssistant to the City Administrator FAW/sh