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HomeMy WebLinkAboutSB City Council Presesntation - Fleet Mod Analysis (1-27-25)Modernizing the City of Seal Beach Municipal Fleet JANUARY 27, 2025 Background ❑The Public Works Department provides: ❑Vehicle acquisition ❑Life cycle maintenance & repair ❑Disposal services ❑Manages two fleet-related funds: Auto Maintenanceand Vehicle Replacement ❑Public Works maintains vehicles for Police, Marine Safety, Public Works, and City Hall operations ❑The current fleet includes: ❑Passenger vehicles, motorcycles, all-terrain vehicles, trailers, tractors, watercraft, and heavy equipment -and numerous portable generators ❑The primary function is to provide and maintain a cost-effective diversified fleet of vehicles and equipment that allows City departments to efficiently conduct their daily business WHY? An effective fleet modernization and lifecycle management strategy focuses on achieving an even, balanced fleet aging cycle. Some of the more specific benefits include: ❑Minimizes repair and maintenance costs ❑Improves fuel efficiencies ❑Increase safety ❑Predictable disposal values ❑Manageable and consistent fiscal impact ❑Increase user satisfaction ❑Regulatory compliance What? Overall Goals… The City’s comprehensive fleet replacement / modernization strategy has highlighted key opportunities for improvement, concentrating on the following areas: ❑Reducing lifecycle costs (i.e., total cost of ownership and cost per mile) ❑Maximizing utilization of existing vehicles ❑Evaluation of pursuit-rated vehicles and light / medium / heavy duty vehicles ❑Fleet cycling frequency ❑Resale market optimization / depreciation impacts ❑Comparison analysis of minimal versus optimal investment strategies ❑Regulatory compliance How? Method of Analysis How? Replacement Criteria Vehicle Life Cycle Groups Life Cycle Replacement Criteria Designations Count Age (years)Mileage (Total) Work Trucks 22 10 100,000 Police Utility Vehicles (Pursuit Rated)16 5 80,000 Lifeguard Vehicles 10 4 80,000 Heavy-Duty Vehicles / Equipment 13 12 Varies General Use -Police 25 10 100,000 General Use -Other 5 10 100,000 Boat 1 15 N/A Total 92 How? Annual Budget Allocations Financials Replacement Highlights NOTE: Police Utility Vehicles and Lifeguard Vehicles comprise most of targeted replacements. Financial Impacts of an Aging Fleet NOTES: Majority of City’s fleet can be categorized as “Car SUV” Fuel efficiency for “Car SUV” increased by 15 mpg from 1980 to 2020 (average of 1.34 mpg per year ) Financial Impacts of an Aging Fleet Financial Impact of Delayed Replacements NOTE: Tables above reflect the financial impacts of a single year in delayed replacements. CA Advanced Clean Fleet Mandate 2013(d) General Requirements. Beginning January 1, 2024, fleet owners must comply with the schedules specified in subsections (1) or (2) below. The fleet owner may alternately elect to comply with the zero-emission vehicle (or “ZEV”) Milestones Option commencing with title 13, CCR, section 2015.2 as described in section 2013(e). NOTE: Renewing a vehicle lease for a vehicle that is already in the California fleet shall not be considered as a vehicle purchase for the California fleet. 1)Except as specified in section 2013(d)(2), fleet owners must purchase ZEVs, or NZEVs as specified in section 2013(f), for their California fleet in accordance with the following schedule: A.Starting January 1, 2024, 50 percent of the total number of vehicle purchases for the California fleet in each calendar year must be ZEVs; and B.Starting January 1, 2027, 100 percent of the total number of vehicle purchases for the California fleet in each calendar year must be ZEVs. 2)A State or local government agency that meets any one of the following criteria must meet the requirements specified in section 2013(d)(1)(B) and are not subject to the requirements specified in section 2013(d)(1)(A): its jurisdiction is solely in a designated low population county; it owns, leases, or operates ten or fewer vehicles in the California fleet, as specified in section 2013(k); or its jurisdiction or service area is split between a designated low population county and a non-designated county and at least 90 percent of the service area in square miles is in the designated low population county. CA ZEV Mandate Compliance Plan Fleet Modernization Summary ❑An aging fleet presents operational challenges ❑Comprehensive Analysis is complete (with industry best practices) ❑Replacement Criteria have been proposed based upon specifics of City fleet types and usage ❑Annual financial targets have been established for the next 6 years ❑Benefits of the modernization plan include longer-term cost savings and improved predictability for operations ❑Implementing alternate acquisitions as part of the plan will lead to regulatory compliance by FY 2029-30 ❑Future requests for action may be forthcoming for authority on replacement criteria and annual budgetary allocations Thank you for your time. Questions?