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Home My WebLink AboutIR 25-0104INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0104 di;Ttp To the Mayor and Members of the City Council September 9, 2025 r',° Page 1 of 4 V. �O Y rrn SUBJECT: COST OF FLEET MAINTENANCE ig7'd The purpose of this Informal Report is to provide the City Council information on the costs of maintaining the City's fleet internally through the Property Management's Fleet Division compared to outsourcing to third -party vendors. As shown in the cost comparisons below for preventative maintenance and common repairs both labor and parts it is more cost efficient to maintain the fleet internally. Note the City of Fort Worth does leverage the use of outside vendors for heavy/specialized work and surge capacity. This is the industry norm and avoids costly facility expansions or inventory requirements for low -frequency, high -complexity repairs. Preventative Maintenance The Fleet Division is taking on a comprehensive approach to preventative maintenance by completing an interactive checklist (Exhibit A) during preventative maintenance visits and moving away from doing only quick visual checks. The new preventative maintenance strategy requires a full top -to -bottom inspection, wheels off and brake checks to assess key safety repairs that may be needed. While the City contractual rates for outside vendors are competitive, on average, the City will incur a higher cost by sending a vehicle to an outside vendor for repair. Top 5 Preventive Maintenance Categories Avg Avg Avg Avg Internal Internal Internal Outside Avg Category Labor + Parts = Total Vendors Savings Glass $109 $613 $722 $1,300 $578 Charging & Starting (Electrical) $218 $725 $943 $1,261 $318 Preventive Maintenance (All Types) $251 $518 $769 $899 $130 Tire Repair & Replacement $138 $615 $753 $829 $76 Top 8 Major Repairs Avg Avg Avg Avg Internal Internal Internal Outside Avg Category Labor + Parts = Total Vendors Savings Transmission $483 $2,471 $2,954 $5,047 $2,093 Steering $456 $2,368 $2,824 $4,740 $1,916 Air Supply $516 $1,812 $2,328 $3,795 $1,467 Cooling Engine $514 $1,736 $2,250 $3,598 $1,348 Emission System $396 $1,898 $2,294 $3,434 $1,140 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0104 aLT� To the Mayor and Members of the City Council September 9, 2025 ram° Page 2 of 4 �i �O Y rrn SUBJECT: COST OF FLEET MAINTENANCE ig7'd Engine $413 $1,763 $2,176 $2,948 $772 Suspension $444 $1,931 $2,375 $3,117 $742 Brakes $489 $2,157 $2,646 $2,998 $352 Labor The graph below shows the comparison of the City's contracted hourly labor rates from FY2022 to FY2025 compared to the retail hourly labor rates for the top six vendors used in FY2025. The FY2025 labor rate charged to departments by Fleet Division Technicians is $116 per hour. $250 $200 $150 $100 $50 $0 Parts 0 O N Ol Ln O N � 001 001 M r-I r-I 00 V? V? V? L � l00 l00 14 14 N Ln rq Ln Ln 14 14 14 in in �M M ` 1 V? V? V? V? O M 14 14 � � r' Pit] Holt Cat Industrial Power MHC Kenworth Premier Truck Rush Truck Center Southwest Truck & Group International Equipment Trucks FY2022 City's Contract Rate FY2023 City's Contract Rate FY2024 City's Contract Rate FY2025 City's Contract Rate 2025 Retail Rate The retail cost for parts is also higher than the City's contracted rates with the parts vendor, NAPA. Below is a comparison of the most used parts at the Fleet Division Service Centers. Part Part Description City Retail Savings Contracted Price Price Batteries Assorted Vehicle batteries for power and ignition $100.52 $199.99 $99.47 Reflective Safety Tape Red/white 2-inch tape (150 ft) for marking vehicles $94.12 $184.99 $90.87 Brakes Brake pads, rotors, and related components $46.35 $118.23 $71.88 Tires Various tire sizes for fleet vehicles $147.11 $209.99 $62.88 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0104 adT� To the Mayor and Members of the City Council September 9, 2025 ram° Page 3 of 4 �i �O Y rrn SUBJECT: COST OF FLEET MAINTENANCE ig7'd Wiper Blades Assorted windshield wiper blades $8.98 $25.99 $17.01 TPMS Sensors Tire pressure monitoring sensors (TPMS) $18.00 $29.95 $11.95 Lighting Headlight or auxiliary vehicle lamps $8.41 $18.99 $10.58 Filters Assorted oil, hydraulic, air, cabin, and fuel filters $3.74 $13.49 $9.75 Wheel Nuts Lug nuts for securing vehicle wheels $5.39 $11.49 $6.10 Work Orders The graph below shows the number of maintenance and repair work orders for both the Fleet Division's Service Centers and outside vendors from FY2022 through FY2024 and estimates for FY2025. 35,000 Total = 31,560 30,000 25,000 20,000 15,000 30,242 10,000 5,000 0 FY2022 Total = 32,118 1 30,527 Total = 31,776 29,992 FY2023 FY2024 Total Work Orders Work Orders with Outside Repairs Total = 30,329 FY2025 Estimate In summary, fleet maintenance performed internally is generally more cost-effective than outsourcing to contracted vendors. Internal labor rates are significantly lower than both retail and contracted external rates, and parts can be purchased in bulk to avoid retail markups —resulting in substantial savings. However, this report does not recommend bringing all heavy repairs in-house, as doing so would require significant capital investment and facility expansion. The City will continue to follow a balanced approach that combines in-house maintenance with strategic use of outside vendors for repairs. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0104 di;Ttp To the Mayor and Members of the City Council September 9, 2025 r',° Page 4 of 4 V. �O Y rrn SUBJECT: COST OF FLEET MAINTENANCE ig7'd For questions regarding this information, please contact Marilyn Marvin, Property Management Department Director at 817-392-7708. Jesus "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS