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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.
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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
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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
,
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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