HomeMy WebLinkAboutIR 8398 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8398
April 9, 2002
PATE* To the Mayor and Members of the City Council Page 1 of 3
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SUBJECT: Fleet Management Study
On February 6, 2001 (M&C C-18448), the City Council authorized a contract with Transportation
Consultants, Inc. (TCI), to conduct Phase I of a planned two-phased analysis of Equipment
Services Department (ESD). Phase I was conducted during a two-week period in March 2001 at
which time TCI observed ESD operations, conducted interviews, and gathered data regarding
workflow, quality control, preventive maintenance, staffing, information systems, vehicle
replacement, outsourcing, parts inventories, and facilities. In April, TCI provided the City with a
report detailing its findings and prioritized recommendations. Those findings and recommendations
were presented to the City Council during its May 1, 2001, Pre-Council Meeting.
TCI subsequently provided the City with a formal proposal for Phase 11 to further refine the
recommendations contained in the Phase I report and assist the City in implementing them. Those
recommendations included:
• Developing a financial recovery plan to eliminate operating deficits
• Revamping maintenance management procedures
• Determining information requirements and developing specifications for a new equipment
management information system
• Developing a plan to control fleet growth and eliminate underutilized vehicles
• Increasing outsourcing/privatization
• Improving fuel management and developing a long range plan
• Developing a short range and long range facilities plan
On June 5, 2001 (M&C C-18609), the City Council authorized amendment of the contract with TCI
for services necessary to proceed with Phase 11 of the project with ESD. With the assistance of
personnel from the Organizational Analysis Unit in the City Managers Office, Phase 11 was kicked
off July 9 and continued virtually non-stop through October. Follow-up visits were conducted by
TCI in December and January to monitor progress, advise, and assist ESD in making further
changes.
Work in the seven major task areas comprising Phase 11 is summarized in the following table:
Task Key Accomplishments Demonstrable Benefits
1. Financial - Formation of cost recovery plan Financial turnaround
Recovery Plan - Positive variance YTD Plan in place
- Competitive market rates
- Component self-sufficiency
- Template for on-going use
ISSUED BY"rHE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8398
April 9, 2002
To the Mayor and Members of the City Council Page 2 of 3
Lila
SUBJECT: Fleet Management Study
Task Key Accomplishments Demonstrable Benefits
2. Maintenance - Positioning of PM's as the - Enhanced production
Management Maintenance Management - More quality repairs
centerpiece - Improved metrics:
- Publication of Shop Operations Manual PM
- Development of metric goals Downtime
- Intensive training in PM, quality control Turns
and work flow - Reduced road calls
- Focus on safety
3. Information - Critical assessment of EMIS - New system defined
Requirements - Development of requirements - User involvement
rF,, , - Demonstrations and site visits - Latest technology within
r/ sight
4, Fleet - Utilization analysis well underway - Net reduction in fleet
Utilization/Asset - Commitment to actively pursue and - Asset (key) control
Control purge underutilized vehicles strengthened
- Motor Pool eliminated - Active pursuit of
- Asset control procedures tightened underutilized vehicles
- Online auctions explored
5. Privatization - Solid work with Fire in this area - Quality repairs at
Initiative - Decision made to proceed with partial competitive prices
privatization - Brennan Shop freed up for
- Contract for aerial inspections and other work
follow-up
6. Fuel Plan - Partnered with Technical Services - Cost competitiveness
-Analyzed usage - Mix of public/private
- Developed plan providers
- Reported results
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8398
April 9, 2002
fl " cffio—T1.02ft To the Mayor and Members of the City Council Page 3 of 3
ltya
SUBJECT: Fleet Management Study
Task Key Accomplishments Demonstrable Benefits
7. Facilities - Developed both long and short term - Cost effective
plan - Configured to workload
- Capitalized on Southeast availability - Long range needs considered
- Evaluation of each Service Center
Other positive outcomes achieved during this project include:
Development of departmental business plan.
Development of service center strategy plans and performance goals.
Increased involvement and interaction of Service Center Supervisors.
Increased productivity.
Reduction in staffing.
• Reduction in labor rate from $49 to $45 per hour.
Increase in ASE and EVT training for technicians.
Consolidation of parts lines.
Increased involvement of users through Equipment Advisory Committee.
Work continues in a number of the major task areas as is reflected in and will be reported on as a
part of ESD's business plan. One significant initiative is the development of an RFP to solicit
proposals for the acquisition of a new fleet management information system. The current system is
mainframe based and has evolved over more than twenty years. It is expensive to maintain and
meets neither the information needs of ESD or user departments. A second significant issue is the
outcome of an RFP that solicits proposals to provide parts, supplies, staffing, and management for
ESD parts operations at the various maintenance facilities. This is part of an effort to insure the
competitiveness of services provided by ESD. The RFP was issued March 20, 2002 and responses
are due back April 18. It is anticipated that proposals can be evaluated to determine the potential
benefits and a recommendation developed such that it can be included in next year's budget with
an October 1, 2002, start-up date.
This briefly summarizes the status of the fleet management study in ESD. A presentation to the
City Council is planned for late May during which additional information will be presented.
Leh- &Gc
iry W. Jackson
amity Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS