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HomeMy WebLinkAboutResolutions - 1994.12.08 - 24048AND BUILDING COMMITTEE PL 7; December 6, 1994 MISCELLANEOUS RESOLUTION 494357 BY: PLANNING & BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: CENTRAL SERVICES - LEASED VEHICLES - LEASED VEHICLE POLICY AMENDMENTS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen; WHEREAS the County Executive implemented the County Policy on Leased Vehicles, as adopted by MiesseellaePous Resolution #93230, reducing overnight assignments on more than 95 vehicles and elimination of 80 vehicles from the fleet saving a projected $2,125,000 in capital and operating costs; and WHEREAS the County Executive's Department of Central Services has conducted- a thorough review of the Leased Vehicle Operations and found an opportunity to improve operational effectiveness which requires additicns to the Leased Vehicle Policy; and WHEREAS it is recommended that the County encourage competition by integrating the fleet with vehicles from other domestic automobile manufacturers and select the most cost-effective vehicles; and WHEREAS leasing vehicles will reduce the purchase price on certain vehicles by using volume discounts generated by leasing companies and provide a mechanism to integrate the fleet; and WHEREAS by using a variety of resale methods, including the use of other auctions, the County can increase the amount received when vehicles are sold; and WHEREAS by at.amdamiLz_ing passenger vehicles which are assigned to ehe metorpool or based on mileage at the mid-size level, the County can reduce Costs. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts a policy to use a variety of domestic automotive companies with the intent of reducing overall costs by encouraging competition. BE IT FURTHER RESOLVED that the Board of Commissioners amends the County Leased Vehicle Policy by adding the attached language to Section IV General Fleet Provisions authorizing the County Executive to use the most cost- effective method of acquiring vehicles, including life cycle costs purchase and lease, to use the best method for the resale of County vehicles which generates the highest resale, and to standardize passenger vehicles which are assigned to the Motorpool or based on mileage at the mid-size level. Chairperson, on behalf of the Planning and Building Committee, T move the adoption of the foregoing resolution. mr-F D. Acrn -.1 will. W' Attachment for MISCELLANEOUS RESOLUTION # CENTRAL SERVICES - LEASED VEHICLES — LEASED VEHICLE OPERATIONS IMPROVEMENTS Add the Following language to the Oakland County Policy on Assignment of County Vehicles, Section IV. General Fleet Provisions: The County Executive shall determine the most cost effective method of acquiring vehicles with the intent to integrate the fleet as it is cost justified with vehicles from domestic automobile manufacturers. This may include the purchasing or leasing vehicles. Cost effectiveness should include the life cycle costs of the vehicle use. E. Disposition of Vehicles The County Executive shall use the best available method for the disposal of County vehicles. These methods may include the semi- annual County Auction, other private auctions and sealed bids. F. Standardization of Passenzer VhirTh For assignment of a passenger car based on the mileage driven (Sec. ILA); specialized usage (Sec. II.D), or transporting of Non-county Personnel (Sec. II.F), a mid-size vehicle shall be assigned. A smaller vehicle may be assigned at the request of the Department. 117 Gliy L'O icy on nt of Co7,:i4 AlieW.77; (As Adopted by MR 93230) • October 21, 1993 * MISCE EOUS RESOLUTION #93230' - FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON CENITAIJ SLY:ICES- -el:,;ED VEHICLES - ADOPTION OF TBF ZCIY POLICY ON LEASED VEHICLES TO THE Oa e CO BOARD OF COMMISSIONERS Chairpereo_, Ladies and Gentlemen: WHEREAS the County Executive has reviewed the County's Leased Vehicle Policy as amended by Miscellaneous Resolution #91235 and recommends the policy be amended to clarify the assignment principles (Attachment A) thereby reducing the number of County vehicles; and WHEREAS ti' _ revised policy clarifies the criteria for assigning vehicles and restricts the assignment of vehicles on a Home/Work (Overnight) status; and WHEREAS the effect of the policy change is to encourage the use of pool vehicles; and WHEREAS because the County personal mileage reimbursement rate is below other counties in the area and below the IRS allowable average and because the effect of this policy may increase the use of personal mileage, it is recommended that the personal aileage rate be increased from $0.25 to $0.28 per mile for non-represented employees and represented employees whose contract includes .a "Me T0:10" clause for fringe benefits or personal mileage; and WHEREAS the policy changes effectively could reduce the number of vehicles in the County fleet by as many as seventy five vehicles saving the County an estimated $210,000 in annual operating expenses and $945,000 in capital costs; and WHEREAS the County Executive has analyzed the rate at which vehicles are replaced in the County fleet and has instituted the revised replacement program with an estimated savings of $47,700 in annual operating expenses and $847,600 in capital costs; and WHEREAS the effect of increasing the personal mileage rei ibursement to $0.28 would incur additional costs of $66,000 for the 4overnmental funds; and WHEREAS the combined saving of the programs is $191,700 in annual operating expenses and $1,792,600 in capital costs for a total of $1,994,300. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts th - attached County Leased Vehicle Policy to become effective January 1, 1994. BE IT -THER RESOLVED that the County Executive is directed to develop the appropriate amendments to the County Executive's 1994-1995 Biennial Budget Recommendation and present those to the Finance Committee for incorporation in the 1994-1995 Adopted Budget. BE IT FURTHER RESOLVED that effective January 1, 1994 the personal mileage rate be increased to $0.28 per mile for non- represented employees and represented employees whose contract includes a "Me Too" clause for fringe benefits or personal mileage. Chairperson, on behalf of the Finance Coit.q..le : I move the adoption of the foregoing resolution. BY: IN RE: :FINANCE OMMIXTEE steMISEVSEUMTV2 MISCELLANEOUS OLUTION OCTOBER 21, lege P * * The Cern:Tel Pool co following • • Itions: Loomis' Garage which 'ere to be under the 11080 A, When • - •-• rtrnents ere ki nIe-t of G B. When equi••=ntive C. When replacement vehicles are necessary for essizeted vehicles undergoing prevsteative maintenance or ect ktterrreeent or out-o. -county trans Generally, these vehicles are c ; . • ote for short pe '• • of time. that vehicles be kierallied as • property or ne-eee for the conduct of County business, repair unstunactu riarViCa epee POrie eon. IPMEIPSIk0f.1r1111 =Alt- In deermlning vehicl riments. Elecutive must h the foil the EinEl i)Wing under this driven in COUNTY POLICY ON ASSI3NI1,31T OF COU VEHICLES AS AMU R A BY It le the policy of the • of Ceti:Lend to for those tiepeutrrients ruMng• • t. • to wider certain • • Nom vehicles we • - anti are supplies and • ad acthrity. When °hole cond for the.• • ect of • bust ,ttL u, • • ; = wIth Cottrity travel regteatiorm, the mcet economic are; tslbk rre II • • of e eel h their mission and goals. It Is ; •• • ntzeri that ry or the Ira • •rt of persons, eq not ;, end a personal vehIcte is necessary for mileage relmIxi : = rit in accordance The use of a County vehicle &ICI be beeei statEpzi herein. A vehicle may be deeem a °stand pool as Ida ' • ki S; ;• I; a eehlole may be eesigned to a department uree,..: the gellelines • * • • hi Section IL koC11.11 y Executive is rewunai bie for the gritiou nt of vehicles. MSS The basic principle in the assignment of a • vehicle to a department, a group of employees or an employee, for the conduct of County bustrime, shall be hi the best interest of the County in terms of economy, ini• * or necessity of • • ticans. A. Mieteoe : Where It Is dot nel that the ZNell,7,2 • mileage driven by an em of • °yew is in excess of 1,000 per menth. Driven ori or The mileage+ of vehicles assigned to sped & depart ktspected a y to deterinkie f- "dent mile- a to necessitate •• tied assignment to the de t) • D43018103:10 mowing and earth moving equi and DOC1168 1. Construction tads 2. Surveying Instruments 3. Radidogioal equ tee-vy • inVelltC695 S. Testing u-iulpment 6. Pumps and cc:apressors 7. Laboratory eq 8. Chemicals 9. Grounds and ma ipmern MATH= de is required to effectively carry out the vete 7 E. are not condudve to the use of 1. Prisorier tra 2. Transporting 3. M: e • arreste 4. Tra - • 4 rig hospital G. SeCted °Ma*: 11$1540 MUM VVOKI of the Court 7:73201-77-2024 rlel I ft is determined I e the - 4,e must . • ized equipment to properly ri1orm the - of Me Joh. The !therm:a:ability of d a vehicle . Why eoui • • 4 from the Ceraral Pool &i1 be shown. Examples of such equipment are: Where It is determined that a special ske • type of veiilde is required to efficiently carry out regitar functions of the department for the = ; of transporting materials, equipment, • les and mnsonniel to Job sites. The impra- Wily of drawing such a specialized vehicle from the Central Pool atedi be shown. Examples of hems to be 4 ; • *nod may hiciude: ETIVISDO D. AgelleigLyehialjeeelfg: Where It Is determined that e Coalty regtgar functions of the de. - for the • of investigtetve or undercover work. Ir OMV_%4Ongffig2M Where It Is determe # that the • ; °and y owned verde The impracticability of drawing an adequate vehicle from the Central Pool sirif lea shown. Lmnare2en_MI.NirereiltEVI „ [704-5044401 it is a 4 arhetation cit r than • employees. from the Central Pool shall be merit to provide transportation for persons Snore -batty of drawing an adequate vehicle y • . pies are as follows: ome The assignment of vehicles to an 6H .me/Work" status, :re required to be justified annually by the assigned department and approved by the County Executive. IV. ag_NERAL FLEET PRMIQNS. A. FLEET EXPANSION: The County Executiv.e, Clerk/Register of Deeds, Drain Commissioner, Prosecuting Atto wy, Sheriff, Tr- . urer, and irpe sn of the Board of Commissioners and his/her Chief Deputy(ies) will be permanently : ignecl a vehicle as part of the office. MO The assignment of a County vehicle Is In effect a trust. County Vehicles are not to - driven by family members or persons other than county employees authorized to operate county vehicles. The County Executive reserves the right to revoke such assignment, or invoke such other penalties as shall be appropriate under the circumstances, whenever the employee is guilty of improper care or use of such vehicle. Prior disciplinary action on the part of the department or institution head will be considered by the County Executive prior to any action taken. Recognizing the conditions under which an assignment ta.s been granted may vary from time to time, each department or institution head in whose department assignments have been made, shall notify Immediately the County Executive via the Central Services Department of any changes of circumstances calling for a change of previously approved assignment within that department. To this end, the County Executive will require annual justification of all regular assignments, U. HOME /WORK ASSIGNMENTS It is the intention of this policy that home/work assignments shall be kept to a minimum. In any case where it is determined that it is to the County's advantage to have the employee take a County vehicle home at the end of the normal work day, it is understood that the vehicle is to be used for the conduct of official business only, and, not for personal activities. The County Executive, 1 ii determining "Home/Work" assignments will give consideration to the following: A. Fleportino to Job Sites Ratiter than the Home Office: Where it is determined that it is to the County's advantage to have the employee report directly to the job site rather .trt to the home office and later travel to the job site. In such ca the dollar savings in efficiency of operation must be shown or the need to provide an e - oted public service apparent. An example Is; if the employee normally started work at 8:30 a.m. and had to report to the office first, he/she would not actually start work on the job until after 9:00 a.m. B.es ndirLoggootegIsuAtoSttuation D troot2Si_ff Dulyobstool ure Where the employee must report immediately to a job situation during normal off-duty hours, under the conditions described in Section II, paragraphs B, C, D, E and F. Whenever possible such assignmeras shall be on a rotating basis from a vehicle pool. E.ach request for additional new vehicles (other than replacements of existing vehicles previously approved by the Board of Commissioners) shall, upon affirmative recommendation of the County Executive, be subm - to the Finance Committee in specific resolution form ;tar e.pproval. Further, the Finance Comm - -, when recommending the addition of a vehicle to the Board of Commissioners, shall ';nclude in that resolution an appropriation sufficient to cover the acquisition cost plus monthly lease charges for the balance of the current year. 3 ped In the Internal Revenue Code equal MINKS Fair market value I be the purchase sna 2) County provided fuel used for I.R.S. rates. _ will be valued at 5,5 cents per mile or at current III ^S UWO VI Jai* All e • used und assigned to d officials anci chief dep sized County decal before a oar Is vehl ; ere *cad In senrice. live * of permsinently marked with a minimum eigheinch s are not to be removed after the C. REPORTING ROIJIREMENTS The County Executhre shall annually wbree to the = . of Commb3sioners, Planning & Building Committee, a report on the • Lease Vehicle • ! ram The report shall Include a listing of the number of vehicles ass!! to clepartrneeis, the total number of vehicles In tei fleet, and a list of vehicles authorized 'Herne /VW assignments, and any signifioent chen! In the County ; - • Vehicle , • • m V. el NTY VALUATION AND Tek_BlUTY FOR lefeerreNAL USE 2F VEHIClig All • ; an areigneci vehicle ureter Sections II and lit of this policy shall comple vehicle trip loge of all count/ ber!riess e -ed eenal use. An annial summary c; thls lob will be furnished to the Accounting Division for uz ; in det - • - . of • - •nal tiSa. B. Veluatien and Taxability All employees ?ex pll a vehicle as part of the personal use of an have Included in their Income for income 1) A pro ee share of the anntarl lease value, as establ .to the • ; e;rturge usti as : e. • eci in tire e 'a lop price of the vehicle, C. Personal Gasoline Taxeiability The empl • - ; shall reimburse the Cott epee eny federal gasoline tax liability on gasoline consumed for personal use The amount of thie relre.ezeement shall te deterrnirrei by the Department of Management and Budget. D. ,*413,11 11,* All Other employees, With an assigned vehicle ;'l have ince e L. In their income for Income tax pu for commuting and de minumue personal use In ace. .:rice with the rate established in the internal Revenue Code, The County shall also be ; Pursed for the z line tax liability, If appikmiie, on any personal use exceeding the mikeage proci1yL.,:cothricocommuting and be mellitus use. 4 - December 8, 1994 FISCAL NOTE (Misc. 194357) BY: FINANCE COMMITTEE, JOHN P. McCULLOCH, CHAIRPERSON IN RE: C'44 *- SERVICES - LEASED VEHICLES - LEASED VEHICLE POLICY . .NDMENTS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution #94357 and finds: 1. The resolution authorizes amendme17.ts to the Leased Vehicle Policies allowing the use of a variety of domestic automobile cowpanies and purchase/lease techniques to enhance resale of County vehicles, as well as standardizing passenger vehicles. 2. Adoption of the policy should result in lower capital cost per vehicle which may translate in reduced lease rates to user departments. 3. No amendments are recommended for the 1995 budget. Development of leased vehicle rates for the 1996-1997 budget will reflect anticipated savings from the adoption of the policy amendments. FINANCE ,AMITTEE Resolution #94357 December 8, 1994 Moved by Palmer supported by McPherson the resolution be adopted. AYES: Jensen, Johnsen, Kaczmar, Kingzett, Kramer, McCulloch, McPherson, Miitner, Moffitt, Newby, Oaks, Obrecht, Palmer, Pernick, Powers, Schmid, Taub, Crake, Din9eldey, Douglas s Garfield, Gosling, Huntoon. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF C.AKLAND) Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County .-oard of commissioners on December 8, 1994 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand anP ffiiced the aa County of Oakland at Pontiac, Michigan this 8th day Lynn D. Allen, County Clerk the