Home Office for Excellence in Government report on State of Arizona's light-duty vehicle fleet

Reference URL

Rate

To link to this object, paste this link in email, IM or document

To embed this object, paste this HTML in website

Office for Excellence in Government report on State of Arizona's light-duty vehicle fleet

View Description

View PDF & Text

PDF
Text

Text Search...

OFFICE FOR EXCELLENCE IN

GOVERNMENT

REPORT ON

STATE OF ARIZONA'S

LIGHT- DUTY VEHICLE FLEET

PREPARED FOR

ARIZONA LEGISLATURE STUDY

COMMITTEE ON STATE ASSETS

JANUARY 1996

I Fife Symington

Governor

Phyllis L. Knox

Director

January 3 1, 1996

Members of the Joint Legislative Study Committee on State Assets:

Transmitted herewith is a report of the State of Arizona's Light Duty Vehicle

Fleet from the Governor's Office for Excellence in Government ( OEG). This report is in

response to a July 12, 1995 request from the Joint Legislative Committee.

As requested, this OEG report contains the following: 1) recommendations

regarding potential opportunities for streamlining the ADOA and ADOT vehicle fleets

commencing with a review of the ADOTIADOA Interagency Service Agreement; 2)

findings and recommendations related to a review of Light Duty Fleet procurement

methods, vehicle dispatch policies and procedures, and utilization and capacities of the

State's motor pool facilities to include vehicle maintenance facilities; and 3) findings and

recommendations on opportunities to consolidate and reduce duplication amongst all

state motor pools.

Specifically, OEG recommends the establishment of a statewide Light Duty

Vehicle Administrator. Additionally, OEG recommends the centralization of procurement

specifications, the establishment of utilization standards, oversight of fleet maintenance

agreements, and the establishment of a central, comprehensive vehicle database. These

elements, currently missing from the State's decentralized and multi- system fleets, are

imperative to improving the efficiency and management of the State's fleet. Finally,

OEG recommends the State pursue opportunities for outsourcing some aspects of the

Light Duty Fleet subsequent to implementation of the Competitive Government Program.

OEG staff and I stand ready to discuss or clarify items in the report.

wSincerel3y, ? by

Phyl is L. Knox

Director

OEG

1700 West Washington, Suite 300

Phoenix, Arizona 85007 ( 602) 542- 7546 Fax: ( 602) 542- 1220

OEG Institute

1700 West Washington, Suite 303

Phoenix, Arizona 85007

( 602) 542- 7000 Fax: ( 602) 542- 1220

OFFICE FOR EXCELLENCE IN

GOVERNMENT

REPORT ON

STATE OF ARIZONA'S

LIGHT- DUTY VEHICLE FLEET

PREPARED FOR

ARIZONA JOINT LEGISLATIVE

STUDY COMMITTEE ON STATE

ASSETS

TABLE OF CONTENTS

PAGE

EXECUTIVE SUMMARY

OBJECTIVE AND GOALS OF THE STUDY

METHODOLOGY

DISCUSSION

State's Light- Duty Vehicle Asset

Competitive Bidding

Maintenance Facility Utilization

ADOA- ADOT Interagency Service

Agreement

APPENDICES

A: Reports, Contacts, & Interviews

B: Light- Duty Vehicle Count

Light- Duty Combined Asset Value

C: Fleet Asset Administrator

D: Motor Pool - Site Inspections

E: ADOA- ADOT ISA Analysis

EXECUTIVE SUMMARY

The Office for Excellence in Government [ OEG] has completed its review of the

State's Light- Duty Vehicle fleet as requested by the Joint Legislative Study

Committee on State Assets. OEG conducted this study from August 1995

through January 1996.

SUMMARY FINDINGS

As provided for by A. R. S. 541- 803, there are ten Light- Duty Vehicle fleets owned

by the State with approximately 7,461 vehicles. The combined estimated asset

value is $ 54.456.557. In addition, eight of these agency fleets operate their own

maintenance facilities. ( The above estimates are as of December 31, 1995.)

Most notably, OEG found:

No Centralized Asset Inventory Reporting System: OEG had to estimate

the Light- Duty Vehicle fleet size because there is no central inventory data

bank. Some agency counts, when compared to the MVD registrations for

that agency, varied as much as 21%;

No Standardized Asset Valuation Methodology: OEG had to estimate the

combined asset value because there is no enterprise- wide uniform method

for determining vehicle Useful Life or Liquidation Value;

No Uniform Fleet Management System or Standards: There are no

enterprise- wide fleet asset management policies or procedures, light- duty

vehicle equipment specifications, data collection processes, or utilization

standards;

Decentralized of Procurement, Maintenance Services, and Outsourcing:

There is no enterprises- wide administration accountable for maximizing the

value of total asset through leveraged purchases, eliminating service

overlaps, and privatization. The ADOA ADOT Interagency Service

Agreement is a positive step in rectifying the service overlaps.

SUMMARY RECOMMENDATIONS

The qualitative and quantitative data obtained in conducting this analysis clearly

dictate and support the following recommendations.

I. Centralize the Liaht- Duty Fleet's Administrative Manaaement

OEG recommends that the Light- Duty Vehicle asset management be centralized

and placed under the direction of a State Light Duty Vehicle Fleet Administrator,

and that this position be located within the Arizona Department of Administration.

Fleet management centralization will result in the following:

standardization of the State owned vehicles' registration data for timely and

accurate asset reports;

enterprise- wide vehicle procurement and utilization standards being

implemented to assure that vehicle allocations are justified and that vehicles

are utilized in a cost effective manner;

standardized methodology for determining a vehicle's useful life and the

State's Light- Duty Vehicle asset value for analysis and reports;

facilitation of the appropriate and timely inclusion of the Light Duty Vehicle

asset ( all or part, and related services) in the State's Competitive

Government Program.

2. Consolidate the State's Liaht- Dutv Vehicle Maintenance Providers

OEG recommends the Arizona Department of Transportation be designated the

State Light- Duty Vehicle Maintenance Vendor accountable for providing all Light-

Duty Vehicle maintenance services for the State. The recommended State Light-

Duty Maintenance Vendor designation will:

implement an enterprise- wide, controlled maintenance program to protect the

asset and maximize liquidation revenues;

increase the utilization and cost effectiveness of the maintenance facilities by

immediately reducing service overlaps and duplication of costs:

provide the State Fleet Administrator with the data necessary to evaluate the

State's vehicle maintenance services' potential for inclusion in the State's

Competitive Government Program.

CONCLUSION

In keeping with the Joint Legislative Study Committee's central mission, OEG

focused its analysis on finding an integrated, cross- agency solution to maximize

the Light- Duty Vehicle asset's utilization and value. This focus led OEG to the

conclusion that the core problem is the lack of a central authority accountable for

obtaining required changes and implementing " best practices". The agency

fleets, experienced personnel, and service facilities are in place. Establishing

this central authority will facilitate and expedite proactive solutions regarding the

utilization of existing resources, privatization, and maximize future opportunities.

OBJECTIVE AND GOALS OF THE STUDY

The overall objective of this study is to evaluate the State's Light- Duty Vehicle

fleet operation to identify opportunities to reduce costs and maximize the asset's

utilization and value. Specifically, the Joint Legislative Study Committee on

State Assets directed the Office for Excellence in Government:

ldentify the logistics of competitive bidding and cost factor considerations with

the Arizona Department of Administration and private sector contacts;

Examine the cost- effectiveness of competitive bids for all or portions of the

State's Light- Duty Vehicle fleets' with special emphasis on the Department of

Administration's " Taxi" and/ or extended dispatch vehicles;

Review the capacity utilization of the State's vehicle maintenance facilities

and look for opportunities to consolidate and reduce duplication;

ldentify opportunities for consolidation and/ or the reduction of duplication

amongst all the State Motor Pools;

Review the results of the Interagency Service Agreement ( ISA) between the

Department of Administration and the Department of Transportation

regarding Light- Duty Vehicle maintenance services.

The Office for Excellence in Government defined the following goals to meet the

Joint Legislative Study Committee's directives and achieve the overall objective:

1. State's Light- Duty Vehicle Asset:

To quantify the numerical size and combined asset value of the State's Light

Duty Fleet to facilitate management decisions regarding utilization,

consolidation, and competitive bidding opportunities.

2. Competitive Bidding:

To identify the " best practices", including logistics, cost factor considerations,

and appropriate time frames for competitive bidding all or portions of the

State's Light- Duty Vehicle Fleets, with special emphasis on the Department

of Administration's " Taxi" and/ or Extended Dispatch vehicles.

3. Maintenance Facility Utilization:

To review the capacity utilization of the State's Light- Duty Vehicle

maintenance facilities and look for opportunities to consolidate and reduce

duplication.

4. ADOA - ADOT lnteragency Service Agreement:

To review and report the results of the Light- Duty Vehicle Maintenance

lnteragency Service Agreement ( ISA) between the Department of

Administration and the Department of Transportation.

METHODOLOGY

The Office for Excellence in Government approached this study by taking an

integrated asset utilization view of the State's Light- Duty Vehicle fleet. The

Light- Duty Vehicle fleet's management, data processing, service delivery

systems, and maintenance programs were reviewed and evaluated against " best

practices" from the private sector and other states. The study focused on

identifying the size and value of the State's Light- Duty Vehicle asset, evaluating

its utilization, and quantifying the maintenance programs in place to protect the

asset. OEG employed the following methodologies:

reviewed the shelf data, including four State studies, and national reports for

possible benchmarking data;

compiled and compared agency, motor vehicle registration, and automotive

valuation data to determine the Light- Duty Vehicle fleet's size and dollar

value;

interviewed the fleet managers of the State's largest fleets and conducted

site inspections and personnel interviews at twenty- four ( 24) of the State's

twenty- six ( 26) maintenance facilities to identify utilization and operational

practices;

interviewed six private sedor fleet management practitioners to identify

private sector management specifications, " best practices," and competitive

opportunities;

reviewed the ADOA- ADOT Maintenance Service Interagency Service

Agreement.

The reviewed documents, agencies and private sector vendors interviewed, and

maintenance sites inspected are listed in REPORTS, CONTACTS, &

INTERVIEWS in Appendix A.

DISCUSSION: STATE'S LIGHT- DUN VEHICLE ASSET

GOAL: To quantify the numerical size and combined asset value of the State's

Light Duty Fleet to facilitate management decisions regarding utilization,

consolidation, and competitive bidding opportunities.

PROBLEM STATEMENT: Prior to identifying the logistics of competitive bidding

for all or portions of the Light- Duty Vehicle fleet, the Office for Excellence in

Government needed an accurate vehicle count and the combined asset's value.

OEG obtained Arizona Department of Transportation - Motor Vehicle Division

Reports, an Arizona Department of Administration - Risk Management Report,

and vehicle counts from the nine of the ten largest agency fleets, ( ADOT, ADOC,

GAME & FISH, ADPS, ADES, SCHOOL FOR THE DEAF & BLIND, AHCCCS,

PARKS, AND ADOA).

FINDINGS:

A. VEHICLE COUNT

After analysis of the available data, OEG concluded that no centralized accurate

data base exists. The numerical variances between the existing data bases

precluded using any of them as " the single source". Examples of the numerical

data variances follow:

ADOT- MVD maintains a total vehicle registration record. However, obtaining

a light- duty vehicle count is significantly constrained due to the inconsistent

entry nomenclature used by reporting state agencies. The MVD1s total

registered vehicle count was 11,070. After re- running the report based on a

light- duty vehicle VIN pattern search, the MVD number was 6,884.

ADOA 1994 Risk Management's Annual Report showed 8,319 vehicles. This

report is compiled annually at year- end from agency surveys but not updated

until the following year end. The data is, therefore, significantly dated. In

addition, not all agency departments responded to the Risk Management

Vehicle Survey. As an example, the report shows 119 vehicles for the

Department of Corrections as of December 1994. ADOC's count is 958 as of

December 1995. ADOC stated that it did not expand its light- duty fleet 839

vehicles in the past year.

ADOT Equipment Services Division was able to provide a complete, up- to-date

inventory report of all ADOT Light Duty Vehicles, but its count did not

agree with the ADOT- MVD report or the ADOA Risk Management report.

In summary, OEG found a 21% variance between the ADOT- Motor Vehicle

Division count of 6,884 vehicles, and the ADOA Risk Management Report's

count of 8,319 vehicles.

Therefore, to achieve the above stated goal, OEG factored in the individual

agency counts to the above two reports and arrived at this " best estimate"; a

of December 31. 1995. the State owned approximatelv 7.461 Liaht- Duty

Vehicles.

In addition, OEG determined that approximately 13% or 993 vehicles are model

year 1979 or older; 36% or 2,686 are model years' 1980- 1 989; and 51 % or 3,805

are model years' 1990- 1995. ( See LIGHT DUTY VEHICLE COUNT -

COMPILA TlON in Appendix B.)

B. ASSET VALUE

The agencies use different formulas and methods for determining a vehicle's

useful life. When OEG tried to determine the fleets' combined asset value, it

found different valuations for the same vehicle from one agency to the next. In

addition, as with the numerical data, no central asset value data base existed.

Therefore, OEG selected the automotive retail sector's method for determining

the State's Light- Duty Vehicle asset's value. Using the " best estimate" of 7,461

vehicles, the percents per model year group, and the automotive industry's Blue

Book - Wholesale Value, OEG estimates the combined asset value of the fleet to

be $ 54.456.557 as of December 31.1995. ( See the LIGHT- DUTY VEHICLE

COMBINED ASSET VALUE - COMPILATION in Appendix B.)

RECOMMENDATIONS:

Based on the above stated findings, OEG recommends the following: ( Note,

these recommendations are consistent with those made in previous fleet

studies.)

Create a central Fleet Administrative Office, under the direction of a State

Light- Duty Vehicle Asset Administrator, that is accountable for maintaining an

accurate accounting of fleet asset's size and the combined asset value;

Define an enterprise- wide, standardized registration format that includes the

vehicle's VIN, manufacture, model year, model type, State vehicle

classification ( LDV, HDV, Water Craft, or Utility), agency " owner", State asset

number, and license plate number;

Work with ADOT Motor Vehicle Division to revise the current vehicle

registrations to conform with the new standardized format.

Define an enterprise- wide, standardized Vehicle Useful Life calculation

methodology for all Light- Duty Vehicles.

Once this central data base and standardized methodologies are in place, the

State Light- Duty Vehicle Asset Administrator will have the data necessary to

make sound, fiscal management decisions, including possible privatization, to

maximize the Light- Duty Vehicle asset's value.

BENEFITS:

Reduces and/ or eliminates the need to use the word, " Estimated" when

working with the State's $ 54.4 million dollars Light- Duty Vehicle asset.

Facilitates and expedites management decisions related to maximizing the

asset's utilization and value.

Facilitates and expedites inclusion of the State's Light- Duty Vehicle fleet

operations in the State's Competitive Government Program.

DISCUSSION: COMPETITIVE BIDDING

GOAL: To identify the " best practices", including logistics, cost factor

considerations and appropriate time frames for competitive bidding all or portions

of the State's Light- Duty Vehicle Fleet, with special emphasis on the Department

of Administration's " Taxi" andlor extended dispatch vehicles.

PROBLEM STATEMENT: A. R. S. § 41- 803 provides that the Director of the

Department of Administration, " shall operate a motor vehicle fleet for all state

owned motor vehicles.. . " for the purpose of providing transportation for state

officers and employees ... excluding" specified agencies. Initially the statute

specified five exclusions: ADPS, ADOT, ADES, ADOC, and the State

Universities and Community Colleges. As of December 31 , I 995, that group has

grown to include AHCCCS and the State Compensation Fund ( by statute), and

Game & Fish and the State Mine Inspector ( by ISAs with ADOA).

There is nothing in the statute regarding " best management practices" for the

procurement andlor utilization of those vehicles. Each agency " definesJ1it s own

fleet specifications, purchases ( within the State's Procurement codes), and

management methodology. This decentralization constrains, if not eliminates,

the potential cost savings and benefits of enterprise- wide asset management

andlor implementation of competitive government practices.

FINDINGS:

A. ASSET MANAGEMENT

* Responsibility for State's Light- Duty Vehicles is decentralized across 10

agencies. Eighty percent ( 80%) the Light- Duty vehicles are " owned" and

managed by agencies excluded in A. R. S. $ 41- 803 statutory umbrella;

The State Procurement Office handles vehicle purchases, but decisions on

make, model, and vehicle specifications are left to purchaser;

Vehicles are purchased without any utilization analysis as to the best, long

term asset value for the State;

There is no centralized system to evaluate and obtain the optimum vehicle

value resulting in the State losing its maximum volume purchase price

leverage;

Guidelines vary by agency on vehicle cost per mile data and replacement

criteria;

There are no standard measures for mileage or driving requirements to

support ownership of vehicles versus leasing;

Non- excluded agencies still own 197 vehicles that, in accordance with A. R. S.

§ 41- 803, should belong to ADOA; a fact first noted in JLBC1s 1990 Light- Duty

Vehicle report.

B. TAXI FLEET DISPATCH

ADOA operates a " Taxi" fleet of approximately 400 vehicles intended for

temporary assignments ( 30 calendar days or less) and for short- notice

dispatches. Although the ADOA Fleet Management instructs its staff to meet

or exceed customer needs, ADOA states:

- they do not have enough vehicles to meet customer demand,

- there is no funding available to purchase additional vehicles and,

- customers report that the current process for requesting a taxi vehicle is

inconvenient for the user.

The ADOA Fleet Management Office is allowing monopolization of the fleet

by some users, resulting in a shortage of vehicles;

Half of " Taxi" fleet usage is for short local trips ( less than 45 miles per day),

which is considered to be under- utilization of the vehicles;

The Fleet Management Office does not consistently monitor assignment

practices to ensure that the " Taxi" fleet is used for intended purposes;

ADOT maintains a separate " Taxi" fleet of approximately 90 vehicles for

ADOT use in the general area of the ADOA " Taxi" fleet facility. ADOT often

has " Taxi" vehicles available when ADOA has none but there is no cross-agency

utilization of vehicles.

RECOMMENDATIONS:

Based on an analysis of the available data and interviews, the Office for

Excellence in Government recommends the following: ( Note, these

recommendations are consistent with those made in the Auditor General's

Performance Report, 1994.)

Employ a State Light- Duty Vehicle Asset Administrator accountable for

maximizing the State's Light- Duty Vehicle Asset's value. ( See FLEET

ASSET ADMlNlSTRA TOR in Appendix C.)

Create a central Fleet Administrative Office under the direction of a State

Light- Duty Vehicle Asset Administrator that is accountable for:

Standardizing the vehicle purchasing process to include vehicle

specifications based on enterprise- wide, best utilization practices.

Reviewing the current procurement practices to identify opportunities

for competitive bidding for leasing vehicles in addition to purchases.

Evaluating a mix of purchased and leased vehicles based on short and

long term agency needs to provide best budget control and asset

utilization.

Establishing standardized cost per mile and replacement criteria.

Including the " Taxi" fleets in the State's Competitive Government

Program. ( Note: Preliminary studies indicate that the " Taxi" fleet

would be a good candidate for outsourcina to a rental car agencv

based on vehicle need and the limited mileaae usage.)

Evaluating the agencies and employees that are continuous users of

the " Taxi" fleet to determine whether the agency is optimally using its

own fleet before requesting " Taxi" fleet vehicles.

Combine the ADOA and the ADOT " Taxi" Vehicle Fleets into one State Taxi

Vehicle Fleet. An analysis of both dispatch sites would be required to

determine best usage. ADOT presently manages the ADOA equipment

maintenance facility at the Capitol Mall location where ADOA dispatches

" Taxi " vehicles.

BENEFITS:

Centralization and management of State's Light- Duty Vehicle asset to

facilitate and expedite " best practices" for fleet procurement and utilization;

Ability to move assets within State agencies based on temporary or

permanent needs using a combination of purchased or leased vehicles;

A State " Taxi" Vehicle Fleet system that meets the intent and directives of

A. R. S. § 41- 803, i. e. providing vehicles for short time periods in a cost

effective and customer focused manner;

A Fleet Administrator in place with the knowledge and expertise to make

business decisions for this state asset while taking into account the interests

of all stakeholders;

Consolidation of ADOA and ADOT " Taxi" fleets will facilitate cost effective

utilization and possible inclusion in the State's Competitive Government

Program.

DISCUSSION: MAINTENANCE FACILITY UTILIZATION

GOAL: To review the capacity utilization of the State's Light- Duty Vehicle

maintenance facilities and look for opportunities to consolidate and reduce

duplication.

PROBLEM STATEMENT: Currently seven agencies and/ or departments

operate twenty- six maintenance facilities in the State. Ten of these facilities are

located in three cities: Phoenix - 6, Tucson - 2, and Flagstaff - 2.

Until recently there was little if any cross utilization of maintenance facilities

except in emergency situations. A. R. S. 941- 803, which established the ADOA

fleet, decentralized vehicle maintenance services to the agencies that owned the

vehicles. The fleet users had different needs, e. g., ADOT - heavy duty vehicles,

ADOA - light duty vehicles, Game & Fish - 4x4 off road equipment, etc. The

service focus was on repairs, not preventive maintenance. Each facility

specialized in repairing their " type" of equipment at the expense of preventive

maintenance services that are common to all vehicles. Lastly, agency budgets

did not lend themselves to interagency expenditures.

FINDINGS:

OEG conducted site inspections at the following facilities: See MOTOR POOL -

SITE INSPECTIONS in Appendix D.

ADOA: 1 facility ( leased to ADOT) -- Light- Duty Vehicles

ADOT: 17 facilities -- Light- Duty and Heavy Duty Vehicles

ADPS: 3 facilities -- Light- Duty Vehicles ( LDV)

ADES: 1 facility -- ( on site equipment repair, Coolidge) -- LDV

LAND: 1 facility -- ( fire fighting equipment modifications)

PARKS: 1 facility -- ( specialized for quick parts replacement)

COLISEUM: 1 facility -- ( on site equipment service)

GAME & FISH: 1 facility -- Light- Duty Vehicles and Water Craft

In 1994, ADOA and GAME & FISH signed an agreement whereby part of

GAME & FISH'S fleet is serviced by ADOA. In 1995 this effort, expanded by

an Interagency Service Agreement ( ISA) between ADOT and ADOA,

transferred all ADOA's maintenance services to ADOT. ( The ADOA- ADOT

ISA is reviewed in the next section of this DISCUSSION.)

Four factors have come into play that have a positive effect on maintenance

consolidation and coordination efforts:

I. The State's transportation infrastructure makes most locations accessible

to lig ht- duty vehicle equipment.

2. The automotive industry has expanded the light- duty vehicle's operational

and mechanical capabilities making it more suitable for meeting agency

transportation needs. With light- duty vehicles now representing 68% of

the State's fleet there are fewer variances in mechanical configurations.

3. The manufacturers have improved vehicle quality, expanded warranty

coverage, and initiated preventive maintenance programs. Preventive

maintenance standards equate to an industry benchmark and are now the

prime directive at all State maintenance facilities.

4. The industry has reduced the number of " unique to one model" parts.

This facilitates greater application of a technician's skills from model to

model within a manufacture's product line. It also reduces the parts'

inventory a facility has to maintain to expedite repairs.

RECOMMENDATIONS:

Based on an analysis of available data, OEG recommends the following:

The State designate a single Light- Duty Vehicle Maintenance " vendor" for all

preventive maintenance, warranty repair coordination, mechanical repairs,

body work, and parts purchasing and inventory control for the State's Light-

Duty Vehicle fleet.

Based on its in- place resources and capabilities ( facility locations, equipment,

information management systems, and management and personnel

expertise) the Arizona Department of Transportation Equipment Department

be designated the " Vendor" until fiscal year end 1997.

This recommendation would be implemented via Interagency Service

Agreements ( ISA's) between ADOT and each of the agencies currently

operating LDV fleets. These agreements would include, at minimum:

1. Clearly defined, vehicle- specific repair performance standards for each

maintenance area ( i. e., preventive maintenance, warranty coordination,

mechanical repairs, and body work).

2. Detailed Service Pricing to include ( 1) fixed PM rates, parts and labor for

preventive maintenance services, and ( 2) industry standard, flat rate

repair times, a fixed hourly rate, and competitive parts1 pricing for non-preventive

maintenance repairs.

3. Clearly defined customer service performance standards. A " Customer" is

defined as ( 1) the agency that purchases the service, and ( 2) the driver

assigned to the vehicle.

4. Clearly defined reports ( billings, performance results, customer

satisfaction scores and management reports) and the submission

schedules.

Although opportunity for facility consolidation seems appropriate, OEG does

not recommend that the ADOA and the agencies independently undertake

this action. Rather, OEG recommends that a cross agency Study Committee

for the Consolidation of the State Maintenance Facilities be formed to

develop a plan for enterprise- wide implementation by July 1996;

The Light Duty Vehicle Maintenance Vendor program be included in the

State's 1998 Competitive Government Program;

OEG does not recommend that the Arizona Department of Corrections and/ or

the State Universities and Community Colleges be included in the

consolidation at this time. Additional studies should be conducted once the

State Light- Duty Vehicle Asset Administrator and the designated vendor

program are in place.

BENEFITS:

Centralized management of all maintenance services would insure that the

state's light duty vehicle asset value is being protected and maximized;

* Centralized management of all maintenance facilities would insure that the

state's fixed assets are being maintained and utilized to capacity;

Standardization of maintenance records would expedite preventive

maintenance programs, warranty repairs control, and asset value analysis;

Maximized maintenance facility resource utilization would include

maintenance facility and/ or repair specialization;

Maximized personnel resource utilization including technician productivity

measurements;

Standardized parts inventory control would embody " best practices"

technology;

Standardized system for determining cost of repairs and billing for improved

maintenance budget management;

The program will be competitively bid to assure best practices and prices for

services rendered.

DISCUSSION: ADOA - ADOT INTERAGENCY

SERVICE AGREEMENT

GOAL: To review and report the results of the Light- Duty Vehicle Maintenance

lnteragency Service Agreement ( ISA) between the Department of Administration

and the Department of Transportation.

PROBLEM STATEMENT: In January 1995, ADOA and ADOT entered into an

lnteragency Service Agreement to transfer all ADOA Light- Duty Vehicle

maintenance services, including FTEs, to ADOT's Equipment Services,

Highways Division. The transfer started with a pilot at the ADOA Capitol Mall

facility and then expanded to enterprise- wide implementation in July 1995. The

agreement's primary criteria are that ( 1) ADOT delivers maintenance services at

a not- to- exceed cost of 4.1 cents per ADOA vehicle mile, and ( 2) the majority of

ADOA maintenance customers be " satisfied" as measured by customer

satisfaction questionnaires. ( The ISA's logistics and service specifications are

not germane to this discussion.)

Prior to the January 1995 date, GAME & FlSH had an ISA in place with ADOA

for selected Light- Duty Vehicle maintenance services. This ISA has been

incorporated into the ADOA- ADOT ISA. ADOT is now providing Light- Duty

Vehicle maintenance services to selected GAME & FlSH vehicles.

FINDINGS:

After reviewing ADOT's YTD 1995, July - December report and the backup data,

OEG confirmed the accuracy of the report and made the following findings: ( See

ADOA- ADOT ISA ANALYSIS in Appendix E.)

For the first two quarters of the ISA, ADOT's cost for providing maintenance

services to ADOT is 3.6 cents per ADOA vehicle mile.

ADOA customers gave ADOT an average score of 3.651 on a 5 point scale in

response to the Customer Satisfaction question, " Overall, please indicate

whether you are more or less satisfied with ADOT caring for your vehicle( s)

than you were prior to July 7."

Prior to the ISA, ADOA customers outside the Phoenix Metroplex used

contracted, private sector maintenance vendors. ADOA has instructed all of

its customers to now use ADOT maintenance services but not all have

complied. ADOA and ADOT are addressing this situation via the Preventive

Maintenance Notification program.

ADOA processed 5,192 Work Orders ( July ' 94 to December ' 94) compared to

4,767 processed by ADOT for the same 1995 calendar period. To obtain a

service- period- to- service- period comparison, OEG factored in these 425 " No

Service" customers to ADOT's report. With the 425 additional customers

factored in, ADOT's cost per mile figure rose from 3.6 cents per mile to 3.9

cents per mile, still below the ISA's 4.1 cents per mile cap.

ADOA's Preventive Maintenance Notification program has not been fully

implemented. ADOT addressed this problem during the second quarter and

a solution is in place for the remainder of the ISA term.

Although ADOA and ADOT use the same fleet administration software, the

agencies1 computer systems are not linked to share information. This

situation is being addressed and targeted for correction by the end of the

ISA's third quarter.

RECOMMENDATIONS:

Based on the analysis of the ISA report and interviews with the ADOA and ADOT

fleet maintenance management, OEG recommends the following:

OEG review the ADOA- ADOT Interagency Service Agreement's third quarter

and year end reports and submit its findings to the Joint Legislative Study

Committee on State Assets.

The ISA be used as a model by the Study Committee for the Consolidation of

the State Maintenance Facilities under a single State Maintenance Vendor.

BENEFITS:

The ISA's success to date makes it a viable working model that will facilitate

and expedite the State's maintenance consolidation program.

I APPENDICES

APPENDIX A: REPORTS, CONTACTS, & INTERVIEWS

A. REPORTS:

1. Joint Legislative Budget Committee Staff Report, State of Arizona Light- Duty

Vehicles, issued June 1990

2. Project SLIM Review published in July 1992

3. Office for Excellence in Government, Review of the State Vehicle Fleet,

completed in Spring 1994

4. The Office of the Auditor General's Performance Audit, Department of

Administration, General Services Division, released in October 1 994

5. Arizona Department of Administration, 1994 Risk Management Fixed Asset

Annual Report

6. Arizona Department of Transportation, Equipment Services Division, Vehicle

Count Report as of December 15, 1995

7. Arizona Department of Transportation, Motor Vehicle Division, Total Vehicle

Registration Report and a subset of this report based upon vehicle vin

numbers

8. Arizona Department of Administration, Arizona Financial Information System

[ AFIS] Report

9. National Association of Fleet Administrators, National Conference of Fleet

Administrators, Annual Sunley released August 1994

1 0. Arizona Revised Statutes § 41 - 803

11. Micou Design Group, Renovation Plan for the ADOA Capitol Mall Facility

12. Interagency Service Agreement between ADOA and ADOT, effective date

July 1995

13. Kelly Blue Book of Automotive Values -- Software program for model years

1976- 1 995

14. Salt River Project, Competitive Fleet Evaluation dated October 1994

15. Salt River Project, Transportation Services Long Range Plan released

September 1992

16. Fleet Administrator Job Descriptions from the follow agencies and

companies:

Department of Administration Enterprise Rent- A- Car, Inc.

Department of Transportation Salt River Project, Inc.

State Procurement Office [ ADOA] National Association of Fleet

Arizona Public Service, Inc. Administrators

B. CONTACTS & INTERVIEWS:

ADOT Equipment Maintenance - Payson

ADOT Equipment Maintenance - Holbrook

ADOT Equipment Maintenance - St. John

ADOT Equipment Maintenance - Springerville

ADOT Equipment Maintenance - Globe

ADOT Equipment Maintenance - Show Low &

Hon- Dah

ADOT Equipment Maintenance - Prescott

ADOT Equipment Maintenance - Safford

ADOT Equipment Maintenance - St. David

ADOT Equipment Maintenance - Tucson

ADOT Equipment Maintenance - Yuma

ADOT Equipment Maintenance - Flagstaff

ADOT Equipment Maintenance - Kingman

ADOT Equipment Maintenance - Page &

Fredonia

ADOT Equipment Maintenance - Phoenix

ADES Maintenance - Coolidge

ADPS Maintenance - Phoenix

ADPS Maintenance - Tucson

ADPS Maintenance - Flagstaff

LAND Maintenance - Phoenix

COLISEUM Maintenance - Phoenix

GAME & FISH Maintenance - Phoenix

PARKS Maintenance - Lake Havasu

Salt River Project, Inc. - Human Resources

Arizona Public Service, Inc. - Budget

Department

Enterprise Rent- A- Car

Arizona State Employees Credit Union

National Association of Fleet Administrators

ADOA Risk Management

ADOT- MVD Data Analysis Section

ADOA Human Resources

ADOA Maintenance and Taxi Fleet Office

ADOA State Procurement Officer

ADOA Fleet Management

ADOA General Manager - Special Services

Division

ADOT Equipment Management

ADOT Fleet Management

OSPB Budget Analyst

JBLC Fiscal Analyst

AT& T Automotive Services

Ryder, Inc

CIGNA Corporation - Fleet Administrator

APPENDIX B: LIGHT- DUTY VEHICLE COUNT - COMPILATION

STATE ADOT OEG ADOA OEG

AGENCY OR MVD BEST RISK ESTIMATED

DEPARTMENT TOTAL ESTIMATE TOTAL AGE GROUPS

AGRICULTURE 28 28 43 PRE 79 13%

AHCCCS 70 116 116

AHS 10 10 0 80- 89 36%

ARCHIVES 4 4 0

ASU 322 322 454 90- 95 51 %

BANKING 1 1 1

BUILDING SAFETY 2 2 1

COLISEUM 6 56 13

COMMERCE 4 4 4

DEAF & BLIND 52 89 89

DEQ 2 2 1

DES 429 423 379

DHS 56 56 77

DOA 1235 1235 1357

DOC 681 958 958

DOT 1358 1358 1560

DPS 1284 1284 1437

AE& MA 8 16 47

GAME & FISH 305 407 407

GEO. SURVEY 5 5 5

LAND 33 33 25

LIBRARIES 1 5 7

LOl7ERY 2 2 0

MINES 6 6 6

NAU 229 229 279

PARKS 47 100 100

PIONEER'S 3 3 0

ACC 2 2 2

UA 698 698 95 1

VETERANS SVCS 1 1 0

TOTALS 6884 746 1 831 9

Total MVD Registered 11,070

Vehicles

APPENDIX B: LIGHT- DUTY VEHICLE COMBINED ASSET

VALUE - COMPILATION

he following calculation process was used:

Compute the average value of a vehicle for a model year. [ Note: Ford and

Chevrolets were used for the sedan fleet because, together, they represent over

92% of the registered sedans. The " Truck" data represents an averaging of LDV

trucks and 4x4 utility vehicles. The Blue Book data started with the 1976 model

year.]

Compute the percent of that model year's vehicle as a part of the total vehicles for

that model year group.

Compute an average vehicle asset value for that model year.

Add the individual model year values to determine estimated vehicle asset value for

the model year group.

Multiply the estimated model year group values times the number of estimated

vehicles for that model year group.

, LIGHT- DUTY VEHICLE COMBINED ASSET VALUE - COMPILATION

- YEAR - FORD CHEVY TRUCK TOTAL$$ %/ YEAR $$/ GROUP ASSET

$ 38.44 DOLLARS

$ 125.63

$ 317.25

$ 581.25

TOTAL $ 10,943.61

TOTAL ASSET

TOTAL $ 1,062.56

769

838

1058

1163

1500

1625

1800

1950

1976

0.05

0.15

0.30

0.50

TOTAL $ 4,378.63 2686 $ 1 1,761,006

0.01

0.02

0.03

0.04

0.05

0.10

0.15

0.20

0.30

0.35

1980

675

700

1000

1050

$ 13.54

$ 30.08

$ 51.45

$ 69.31

$ 98.05

$ 21 8.90

$ 418.35

$ 668.00

$ 1,198.50

$ 1,612.45 36%

2300

2725

3200

3825

41 50

4675

5275

6200

7075

8050

700

800

950

1100

1354

1504

1715

1733

1961

2189

2789

3340

3995

4607

1125

1200

1375

1000

1125

1275

2375

2775

3275

3875

1325

1475

1650

1895

2200

2425

2525

31 25

3875

4400

APPENDIX C: FLEET ASSET ADMINISTRATOR

OBJECTIVE:

To identify the position description including required experience and areas of

accountability for a State Light- Duty Vehicle Fleet Administrator.

RESEARCH CONDUCTED:

In concert with the summary recommendations of this study, the Office for

Excellence in Government obtained the following data to facilitate the

preparation of a " best" candidate job description for the State Fleet

Administrator's position.

Gather Sample Job Descriptions of fleet managers

Written job descriptions were obtained from various government entities,

corporations and professional associations. Included in the data gathering are

the following:

State Fleet Administrator - State of Arizona

Equipment Services Administrator - State of Arizona

Fleet Administrator - Owens Illinois Corporation

Assistant Director for Vehicle Fleet Services - Cigna Corporation

Manager of Fleet Administration - National Association of Fleet

Administrators

Fleet Administrator - National Association of Fleet Administrators

Interview Fleet Managers

Interviews were held with managers in the area of fleet management and

motor pool assets. Included in the interviews were the following:

State Fleet Administrator - ADOA

Professional Services Unit Administrator, Procurement - ADOA

Equipment Administrator - ADOT

Fleet Management Manager - ADOT

Vice President and General Manager - Enterprise Rent- A- Car

Manager of Transportation Services - Salt River Project

Senior Compensation Analyst - Salt River Project

Determine Job Requirements

Job requirement research in the following areas was conducted:

Position Function

Knowledge & Skill Requirements

Impact of Decisions

Complexity of Position

Work Relationships

Education and Experience Requirements

Compensation

FINDINGS:

The expertise and " bestJJp ractices required to manage the State's Light- Duty

Vehicle Asset is in place both in the private and public sector enterprises.

RECOMMENDATIONS:

Establish a Statewide Fleet Asset Administrator position.

Hire a high level executive with a record of success in business re-engineering

in the area of asset management. Sample Job Description

follows at the end of this exhibit.

Working Title: State Fleet Manager

Agency: Arizona Department of Administration ( ADOA)

Immediate Supervisor: Director of Administration

Position Function

Position Purpose: The primary purposes of this position maximize the State'

Light Duty Vehicle asset value. The incumbent will be responsible for making

major and minor changes to the organization structure, methods and

procedures, as necessary, to achieve the primary purpose.

Reporting Relationships: This position will receive work direction from the

Director of ADOA. The incumbent will work in concert with the various

agency fleet managers for managing the asset allocations and obtaining all

necessary resources to achieve the primary purpose. In addition, the

incumbent will act as the Fleet Manger for the Department of Administration.

The following organization chart illustrates these relationships.

Agency

Arlzona Department of Adrn~ nlstrat~ on

ADOA

D~ rector

Agency

Fleet

c State Fleet Manager

Knowledae & Skill Requirements

Knowledge or Skill, Description

SPECIFIC

Vehicle Maintenance and Repair

Vehicle Replacement Criteria and Policy

Auto Rentals and Leasing

Automotive Industry

EPA Regulations

Vehicle Aftermarket Purchases

Control of Licenses and Titles

Vehicle Asset management

Life Cycle Costing

Capital Asset Management

Outsourcing

State Government Budgeting

State Government Procurement

Rate Negotiation

Maintenance Agreements

Computer Information Systems

Management Reporting

Asset Management

Business Planning

Strategic Planning

Setting Goals

Organization Effectiveness

Re- engineering

Statistics

Performance Measurement and Standards

Risk Management

Managerial Accounting and Billing

Inventory Management

Warranty Claims

Insurance

Analytical Skills

Creativity

Initiative

Leadership

Public Speaking

Conflict Resolution

Group Problem Solving

Listening

Performance Appraisal

Staffing

Change Management

Rewards and Recognition

Persuasion

Training

Team Building

Confrontation

Degree of Requirement

General

Complete

Working

Complete

Working

Complete

General

Working

Complete

Working

Complete

Working

Complete

Working

Complete

General

Working

Complete

Working

Complete

Working

General

Working

Complete

Impact of Decisions

Direct: The majority of decisions made by the incumbent will directly impact

those agencies who use the State's Light- Duty Vehicle asset and those who

are responsible for maintaining the asset's value.

Indirect: To the extent that costs are reduced, taxpayers will experience a

reduction in the costs of government.

Complexity of Position

Direct Technical Responsibility: The incumbent will allocate the majority of

time to planning and policy formulation in order to achieve the primary

purposes.

Restrictions: Standard restrictions will include the statutes, regulations and

policies of state government. The Director of ADOA can override decisions of

this position.

Total Budget: The incumbent will manage assets totaling approximately $ 55

million and a fleet size between 6,000 and 8,000 vehicles.

Work Relationships

Internal: The majority of internal contacts will be with the agency fleet

managers. On a regular basis the incumbent will be responsible for routine

information exchange, interpretation of complex material and gaining

cooperation of others on matters of high importance.

External: The majority of external contacts may consist of private sector

vendors. On a regular basis the incumbent will be responsible for reviewing

fleet operations for possible inclusion in the State's Competitive Government

Program.

Education And Experience Requirements

Education: the incumbent will have at least a four year Business degree and

a Masters in Business Administration.

Work Experience: The incumbent will be a seasoned manager with a record

of success in organizational turnaround and have at least ten years of high

! eve! executive experience.

Compensation

Base Salary: The range for this position will be $ 63,000 to $ 93,000. This is

based on recent salary survey data conducted by Salt River Project.

Benefits: An average 20% multiplier used in Arizona state government results

in a range of $ 12,600 to $ 18,600.

Total Compensation: The resulting range is $ 75,600 to $ 1 11,600.

APPENDIX D: MOTOR POOL - SITE INSPECTIONS

I LOCATION I SVC I SVC I VEH. I SVC I FTE I FTE I LIFTS I PARTS 1 COMMENTS I HRS. I BAYS I TYPE I LEVEL I TECHS I PM- SVC I I DEPT. I

CODES: L - Light Duty Vehicle P - Preventive Maintenance, E - FTE Parts Expediter

H - Heavy Duty Vehicle M - Light Mechanical, Repair or Replace SVC - Service

W - Water Craft R - Repair or Rebuild - Heavy Mechanical D - Double bays, drive through

DEPARTMENT OF TRANSPORTATION

Phoenix

Tucson

Flagstaff

Payson

Holbrook

St. John

Springerville

Show Low

Globe

Yuma

Kingman

Prescott

Hon- dah

St. David

Page

Fredonia

Safford

8.5

7.5

L& H

L, H& W

L& H

ALL

P& M

ALL

P& M

ALL

P& M

ALL

P& M

ALL

P& M

E, two

Repairs, rebuilds, and fabrication

Building should be replaced

Large " Traveling Tech" area

Close this and use Springerville

Could handle all St. John work

Paperwork for 3 sites

Team atmosphere very obvious

" Real Time" repair mentality

Building should be replaced

Just opened this winter - snow

equip.

Being built - SVC SE corner of

state

Manages Fredonia site

Backlog of work

= = = = = D = = = = = m = = D = = - =

MOTOR POOL - SITE INSPECTIONS:

DEPARTMENT OF ADMINISTRATION ( Currently leased to ADOT)

( Phoenix 1 8 1 6 1 L I P I 3 2 I 3 I E I Building should be replaced

LOCATION

DEPARTMENT OF PUBLIC SAFETY

FTE

TECHS

SVC

HRS.

DEPARTMENT OF ECONOMIC SECURITY

FTE

PM- SVC

SVC

BAYS

LAND DEPARTMENT -- Fire Equipment Retrofit

LIFTS

[ Phoenix 18 I Two bays with two techs. Specializes in retrofitting fire fighting equipment

VEH.

TYPE

P& M

Phoenix

Tucson

Flagstaff

PARKS -- Maintenance Pad

SVC

LEVEL

PARTS

DEPT.

2 0

COMMENTS

Coolidge

E, two

L 1

Lake Havasu

Parts - Bar codes & Motorcycles

R& R

Can handle more business

Parts - Bar codes, uses

inmatelclerical

Building should be

rebuilt/ consolidation

8 P& M

7.5 Two mobile homes with carports. Light maintenance only. No FTE's technicians. Primarily a storage

lot.

I I ~ MOTOR POOL - SITE INSPECTIONS:

COLISEUM

LOCATION

( Phoenix 1 7.5 1 2 I L& H I ALL ( 1 1 I Services equipment at Coliseum complex only. I

GAME & FISH

SVC

HRS.

( Phoenix 18 15 I L& W 1 P& M 13 I I I I I E I Building should be replaced. I

MAINTENANCE SITES NOT INCLUDED IN THE SURVEY -- DEPARTMENT OF CORRECTIONS

SVC

BAYS

I LOCATION 1 SVC I VEH. I

VEH.

TYPE

I Douglas 3 I L& H I

Tuscon ( 2)

Safford

Slab I L& H 1

SVC

LEVEL

Yuma

Catalina Mt.

FTE

TECHS

FTE

PM- SVC

L& H

LIFTS

L& H

PARTS

DEPT.

COMMENTS

PENDIX E: ADOA- ADOT ISA ANALYSIS

The following analysis includes the maintenance services data provided by ADOT for July to December 1995.

Note: ADOA stated the Oct- Dec shortfall in ADOT's results is historic due to holiday vacations.

I 1

~ ADOTIS A QUARTERLY REPORTS ADOT REPORTS JUL. - DEC. 1995 I

Description

Rating
TITLE	Office for Excellence in Government report on State of Arizona's light-duty vehicle fleet
CREATOR	Arizona. Office for Excellence in Government.
SUBJECT	Legislative Study Committee.--Arizona.; Government vehicles--Arizona; Motor vehicle fleets;
Browse Topic	Government and politics
DESCRIPTION	37 pages (PDF version). File size: 1680.775 KB. From title page: "Prepared for Arizona Legislature Study Committee on State Assets".
Language	English
Publisher	Arizona. Office for Excellence in Government.
TYPE	Text
Material Collection	State Documents House Received Reports Legislative Study Committee Reports
Acquisition Note	Publication or link to publication sent to reports@lib.az.us
RIGHTS MANAGEMENT	Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution.
DATE ORIGINAL	1996-01
Time Period	1990s (1990-1999)
ORIGINAL FORMAT	Paper
Source Identifier	LG 1.2:A 77 L 43
Location	248753562
DIGITAL IDENTIFIER	RMDHOUSE_SAZLDVF_JAN_1996.pdf
DIGITAL FORMAT	PDF (Portable Document Format)
DIGITIZATION SPECIFICATIONS	Digitized into PDF form through scanning at the Records Management Division, Arizona State Library.
REPOSITORY	Arizona State Library. Archives and Public Records--Law and Research Library.
File Size	1680.775 KB
Full Text	OFFICE FOR EXCELLENCE IN GOVERNMENT REPORT ON STATE OF ARIZONA'S LIGHT- DUTY VEHICLE FLEET PREPARED FOR ARIZONA LEGISLATURE STUDY COMMITTEE ON STATE ASSETS JANUARY 1996 I I Fife Symington Governor I I I I I I I I I I I I I I I I I Phyllis L. Knox Director January 3 1, 1996 Members of the Joint Legislative Study Committee on State Assets: Transmitted herewith is a report of the State of Arizona's Light Duty Vehicle Fleet from the Governor's Office for Excellence in Government ( OEG). This report is in response to a July 12, 1995 request from the Joint Legislative Committee. As requested, this OEG report contains the following: 1) recommendations regarding potential opportunities for streamlining the ADOA and ADOT vehicle fleets commencing with a review of the ADOTIADOA Interagency Service Agreement; 2) findings and recommendations related to a review of Light Duty Fleet procurement methods, vehicle dispatch policies and procedures, and utilization and capacities of the State's motor pool facilities to include vehicle maintenance facilities; and 3) findings and recommendations on opportunities to consolidate and reduce duplication amongst all state motor pools. Specifically, OEG recommends the establishment of a statewide Light Duty Vehicle Administrator. Additionally, OEG recommends the centralization of procurement specifications, the establishment of utilization standards, oversight of fleet maintenance agreements, and the establishment of a central, comprehensive vehicle database. These elements, currently missing from the State's decentralized and multi- system fleets, are imperative to improving the efficiency and management of the State's fleet. Finally, OEG recommends the State pursue opportunities for outsourcing some aspects of the Light Duty Fleet subsequent to implementation of the Competitive Government Program. OEG staff and I stand ready to discuss or clarify items in the report. wSincerel3y, ? by Phyl is L. Knox Director OEG 1700 West Washington, Suite 300 Phoenix, Arizona 85007 ( 602) 542- 7546 Fax: ( 602) 542- 1220 OEG Institute 1700 West Washington, Suite 303 Phoenix, Arizona 85007 ( 602) 542- 7000 Fax: ( 602) 542- 1220 OFFICE FOR EXCELLENCE IN GOVERNMENT REPORT ON STATE OF ARIZONA'S LIGHT- DUTY VEHICLE FLEET PREPARED FOR ARIZONA JOINT LEGISLATIVE STUDY COMMITTEE ON STATE ASSETS TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY OBJECTIVE AND GOALS OF THE STUDY METHODOLOGY DISCUSSION State's Light- Duty Vehicle Asset Competitive Bidding Maintenance Facility Utilization ADOA- ADOT Interagency Service Agreement APPENDICES A: Reports, Contacts, & Interviews B: Light- Duty Vehicle Count Light- Duty Combined Asset Value C: Fleet Asset Administrator D: Motor Pool - Site Inspections E: ADOA- ADOT ISA Analysis EXECUTIVE SUMMARY The Office for Excellence in Government [ OEG] has completed its review of the State's Light- Duty Vehicle fleet as requested by the Joint Legislative Study Committee on State Assets. OEG conducted this study from August 1995 through January 1996. SUMMARY FINDINGS As provided for by A. R. S. 541- 803, there are ten Light- Duty Vehicle fleets owned by the State with approximately 7,461 vehicles. The combined estimated asset value is $ 54.456.557. In addition, eight of these agency fleets operate their own maintenance facilities. ( The above estimates are as of December 31, 1995.) Most notably, OEG found: No Centralized Asset Inventory Reporting System: OEG had to estimate the Light- Duty Vehicle fleet size because there is no central inventory data bank. Some agency counts, when compared to the MVD registrations for that agency, varied as much as 21%; No Standardized Asset Valuation Methodology: OEG had to estimate the combined asset value because there is no enterprise- wide uniform method for determining vehicle Useful Life or Liquidation Value; No Uniform Fleet Management System or Standards: There are no enterprise- wide fleet asset management policies or procedures, light- duty vehicle equipment specifications, data collection processes, or utilization standards; Decentralized of Procurement, Maintenance Services, and Outsourcing: There is no enterprises- wide administration accountable for maximizing the value of total asset through leveraged purchases, eliminating service overlaps, and privatization. The ADOA ADOT Interagency Service Agreement is a positive step in rectifying the service overlaps. SUMMARY RECOMMENDATIONS The qualitative and quantitative data obtained in conducting this analysis clearly dictate and support the following recommendations. I. Centralize the Liaht- Duty Fleet's Administrative Manaaement OEG recommends that the Light- Duty Vehicle asset management be centralized and placed under the direction of a State Light Duty Vehicle Fleet Administrator, and that this position be located within the Arizona Department of Administration. Fleet management centralization will result in the following: standardization of the State owned vehicles' registration data for timely and accurate asset reports; enterprise- wide vehicle procurement and utilization standards being implemented to assure that vehicle allocations are justified and that vehicles are utilized in a cost effective manner; standardized methodology for determining a vehicle's useful life and the State's Light- Duty Vehicle asset value for analysis and reports; facilitation of the appropriate and timely inclusion of the Light Duty Vehicle asset ( all or part, and related services) in the State's Competitive Government Program. 2. Consolidate the State's Liaht- Dutv Vehicle Maintenance Providers OEG recommends the Arizona Department of Transportation be designated the State Light- Duty Vehicle Maintenance Vendor accountable for providing all Light- Duty Vehicle maintenance services for the State. The recommended State Light- Duty Maintenance Vendor designation will: implement an enterprise- wide, controlled maintenance program to protect the asset and maximize liquidation revenues; increase the utilization and cost effectiveness of the maintenance facilities by immediately reducing service overlaps and duplication of costs: provide the State Fleet Administrator with the data necessary to evaluate the State's vehicle maintenance services' potential for inclusion in the State's Competitive Government Program. CONCLUSION In keeping with the Joint Legislative Study Committee's central mission, OEG focused its analysis on finding an integrated, cross- agency solution to maximize the Light- Duty Vehicle asset's utilization and value. This focus led OEG to the conclusion that the core problem is the lack of a central authority accountable for obtaining required changes and implementing " best practices". The agency fleets, experienced personnel, and service facilities are in place. Establishing this central authority will facilitate and expedite proactive solutions regarding the utilization of existing resources, privatization, and maximize future opportunities. OBJECTIVE AND GOALS OF THE STUDY The overall objective of this study is to evaluate the State's Light- Duty Vehicle fleet operation to identify opportunities to reduce costs and maximize the asset's utilization and value. Specifically, the Joint Legislative Study Committee on State Assets directed the Office for Excellence in Government: ldentify the logistics of competitive bidding and cost factor considerations with the Arizona Department of Administration and private sector contacts; Examine the cost- effectiveness of competitive bids for all or portions of the State's Light- Duty Vehicle fleets' with special emphasis on the Department of Administration's " Taxi" and/ or extended dispatch vehicles; Review the capacity utilization of the State's vehicle maintenance facilities and look for opportunities to consolidate and reduce duplication; ldentify opportunities for consolidation and/ or the reduction of duplication amongst all the State Motor Pools; Review the results of the Interagency Service Agreement ( ISA) between the Department of Administration and the Department of Transportation regarding Light- Duty Vehicle maintenance services. The Office for Excellence in Government defined the following goals to meet the Joint Legislative Study Committee's directives and achieve the overall objective: 1. State's Light- Duty Vehicle Asset: To quantify the numerical size and combined asset value of the State's Light Duty Fleet to facilitate management decisions regarding utilization, consolidation, and competitive bidding opportunities. 2. Competitive Bidding: To identify the " best practices", including logistics, cost factor considerations, and appropriate time frames for competitive bidding all or portions of the State's Light- Duty Vehicle Fleets, with special emphasis on the Department of Administration's " Taxi" and/ or Extended Dispatch vehicles. 3. Maintenance Facility Utilization: To review the capacity utilization of the State's Light- Duty Vehicle maintenance facilities and look for opportunities to consolidate and reduce duplication. 4. ADOA - ADOT lnteragency Service Agreement: To review and report the results of the Light- Duty Vehicle Maintenance lnteragency Service Agreement ( ISA) between the Department of Administration and the Department of Transportation. METHODOLOGY The Office for Excellence in Government approached this study by taking an integrated asset utilization view of the State's Light- Duty Vehicle fleet. The Light- Duty Vehicle fleet's management, data processing, service delivery systems, and maintenance programs were reviewed and evaluated against " best practices" from the private sector and other states. The study focused on identifying the size and value of the State's Light- Duty Vehicle asset, evaluating its utilization, and quantifying the maintenance programs in place to protect the asset. OEG employed the following methodologies: reviewed the shelf data, including four State studies, and national reports for possible benchmarking data; compiled and compared agency, motor vehicle registration, and automotive valuation data to determine the Light- Duty Vehicle fleet's size and dollar value; interviewed the fleet managers of the State's largest fleets and conducted site inspections and personnel interviews at twenty- four ( 24) of the State's twenty- six ( 26) maintenance facilities to identify utilization and operational practices; interviewed six private sedor fleet management practitioners to identify private sector management specifications, " best practices" and competitive opportunities; reviewed the ADOA- ADOT Maintenance Service Interagency Service Agreement. The reviewed documents, agencies and private sector vendors interviewed, and maintenance sites inspected are listed in REPORTS, CONTACTS, & INTERVIEWS in Appendix A. DISCUSSION: STATE'S LIGHT- DUN VEHICLE ASSET GOAL: To quantify the numerical size and combined asset value of the State's Light Duty Fleet to facilitate management decisions regarding utilization, consolidation, and competitive bidding opportunities. PROBLEM STATEMENT: Prior to identifying the logistics of competitive bidding for all or portions of the Light- Duty Vehicle fleet, the Office for Excellence in Government needed an accurate vehicle count and the combined asset's value. OEG obtained Arizona Department of Transportation - Motor Vehicle Division Reports, an Arizona Department of Administration - Risk Management Report, and vehicle counts from the nine of the ten largest agency fleets, ( ADOT, ADOC, GAME & FISH, ADPS, ADES, SCHOOL FOR THE DEAF & BLIND, AHCCCS, PARKS, AND ADOA). FINDINGS: A. VEHICLE COUNT After analysis of the available data, OEG concluded that no centralized accurate data base exists. The numerical variances between the existing data bases precluded using any of them as " the single source". Examples of the numerical data variances follow: ADOT- MVD maintains a total vehicle registration record. However, obtaining a light- duty vehicle count is significantly constrained due to the inconsistent entry nomenclature used by reporting state agencies. The MVD1s total registered vehicle count was 11,070. After re- running the report based on a light- duty vehicle VIN pattern search, the MVD number was 6,884. ADOA 1994 Risk Management's Annual Report showed 8,319 vehicles. This report is compiled annually at year- end from agency surveys but not updated until the following year end. The data is, therefore, significantly dated. In addition, not all agency departments responded to the Risk Management Vehicle Survey. As an example, the report shows 119 vehicles for the Department of Corrections as of December 1994. ADOC's count is 958 as of December 1995. ADOC stated that it did not expand its light- duty fleet 839 vehicles in the past year. ADOT Equipment Services Division was able to provide a complete, up- to-date inventory report of all ADOT Light Duty Vehicles, but its count did not agree with the ADOT- MVD report or the ADOA Risk Management report. In summary, OEG found a 21% variance between the ADOT- Motor Vehicle Division count of 6,884 vehicles, and the ADOA Risk Management Report's count of 8,319 vehicles. Therefore, to achieve the above stated goal, OEG factored in the individual agency counts to the above two reports and arrived at this " best estimate"; a of December 31. 1995. the State owned approximatelv 7.461 Liaht- Duty Vehicles. In addition, OEG determined that approximately 13% or 993 vehicles are model year 1979 or older; 36% or 2,686 are model years' 1980- 1 989; and 51 % or 3,805 are model years' 1990- 1995. ( See LIGHT DUTY VEHICLE COUNT - COMPILA TlON in Appendix B.) B. ASSET VALUE The agencies use different formulas and methods for determining a vehicle's useful life. When OEG tried to determine the fleets' combined asset value, it found different valuations for the same vehicle from one agency to the next. In addition, as with the numerical data, no central asset value data base existed. Therefore, OEG selected the automotive retail sector's method for determining the State's Light- Duty Vehicle asset's value. Using the " best estimate" of 7,461 vehicles, the percents per model year group, and the automotive industry's Blue Book - Wholesale Value, OEG estimates the combined asset value of the fleet to be $ 54.456.557 as of December 31.1995. ( See the LIGHT- DUTY VEHICLE COMBINED ASSET VALUE - COMPILATION in Appendix B.) RECOMMENDATIONS: Based on the above stated findings, OEG recommends the following: ( Note, these recommendations are consistent with those made in previous fleet studies.) Create a central Fleet Administrative Office, under the direction of a State Light- Duty Vehicle Asset Administrator, that is accountable for maintaining an accurate accounting of fleet asset's size and the combined asset value; Define an enterprise- wide, standardized registration format that includes the vehicle's VIN, manufacture, model year, model type, State vehicle classification ( LDV, HDV, Water Craft, or Utility), agency " owner", State asset number, and license plate number; Work with ADOT Motor Vehicle Division to revise the current vehicle registrations to conform with the new standardized format. Define an enterprise- wide, standardized Vehicle Useful Life calculation methodology for all Light- Duty Vehicles. Once this central data base and standardized methodologies are in place, the State Light- Duty Vehicle Asset Administrator will have the data necessary to make sound, fiscal management decisions, including possible privatization, to maximize the Light- Duty Vehicle asset's value. BENEFITS: Reduces and/ or eliminates the need to use the word, " Estimated" when working with the State's $ 54.4 million dollars Light- Duty Vehicle asset. Facilitates and expedites management decisions related to maximizing the asset's utilization and value. Facilitates and expedites inclusion of the State's Light- Duty Vehicle fleet operations in the State's Competitive Government Program. DISCUSSION: COMPETITIVE BIDDING GOAL: To identify the " best practices", including logistics, cost factor considerations and appropriate time frames for competitive bidding all or portions of the State's Light- Duty Vehicle Fleet, with special emphasis on the Department of Administration's " Taxi" andlor extended dispatch vehicles. PROBLEM STATEMENT: A. R. S. § 41- 803 provides that the Director of the Department of Administration, " shall operate a motor vehicle fleet for all state owned motor vehicles.. . " for the purpose of providing transportation for state officers and employees ... excluding" specified agencies. Initially the statute specified five exclusions: ADPS, ADOT, ADES, ADOC, and the State Universities and Community Colleges. As of December 31 , I 995, that group has grown to include AHCCCS and the State Compensation Fund ( by statute), and Game & Fish and the State Mine Inspector ( by ISAs with ADOA). There is nothing in the statute regarding " best management practices" for the procurement andlor utilization of those vehicles. Each agency " definesJ1it s own fleet specifications, purchases ( within the State's Procurement codes), and management methodology. This decentralization constrains, if not eliminates, the potential cost savings and benefits of enterprise- wide asset management andlor implementation of competitive government practices. FINDINGS: A. ASSET MANAGEMENT * Responsibility for State's Light- Duty Vehicles is decentralized across 10 agencies. Eighty percent ( 80%) the Light- Duty vehicles are " owned" and managed by agencies excluded in A. R. S. $ 41- 803 statutory umbrella; The State Procurement Office handles vehicle purchases, but decisions on make, model, and vehicle specifications are left to purchaser; Vehicles are purchased without any utilization analysis as to the best, long term asset value for the State; There is no centralized system to evaluate and obtain the optimum vehicle value resulting in the State losing its maximum volume purchase price leverage; Guidelines vary by agency on vehicle cost per mile data and replacement criteria; There are no standard measures for mileage or driving requirements to support ownership of vehicles versus leasing; Non- excluded agencies still own 197 vehicles that, in accordance with A. R. S. § 41- 803, should belong to ADOA; a fact first noted in JLBC1s 1990 Light- Duty Vehicle report. B. TAXI FLEET DISPATCH ADOA operates a " Taxi" fleet of approximately 400 vehicles intended for temporary assignments ( 30 calendar days or less) and for short- notice dispatches. Although the ADOA Fleet Management instructs its staff to meet or exceed customer needs, ADOA states: - they do not have enough vehicles to meet customer demand, - there is no funding available to purchase additional vehicles and, - customers report that the current process for requesting a taxi vehicle is inconvenient for the user. The ADOA Fleet Management Office is allowing monopolization of the fleet by some users, resulting in a shortage of vehicles; Half of " Taxi" fleet usage is for short local trips ( less than 45 miles per day), which is considered to be under- utilization of the vehicles; The Fleet Management Office does not consistently monitor assignment practices to ensure that the " Taxi" fleet is used for intended purposes; ADOT maintains a separate " Taxi" fleet of approximately 90 vehicles for ADOT use in the general area of the ADOA " Taxi" fleet facility. ADOT often has " Taxi" vehicles available when ADOA has none but there is no cross-agency utilization of vehicles. RECOMMENDATIONS: Based on an analysis of the available data and interviews, the Office for Excellence in Government recommends the following: ( Note, these recommendations are consistent with those made in the Auditor General's Performance Report, 1994.) Employ a State Light- Duty Vehicle Asset Administrator accountable for maximizing the State's Light- Duty Vehicle Asset's value. ( See FLEET ASSET ADMlNlSTRA TOR in Appendix C.) Create a central Fleet Administrative Office under the direction of a State Light- Duty Vehicle Asset Administrator that is accountable for: Standardizing the vehicle purchasing process to include vehicle specifications based on enterprise- wide, best utilization practices. Reviewing the current procurement practices to identify opportunities for competitive bidding for leasing vehicles in addition to purchases. Evaluating a mix of purchased and leased vehicles based on short and long term agency needs to provide best budget control and asset utilization. Establishing standardized cost per mile and replacement criteria. Including the " Taxi" fleets in the State's Competitive Government Program. ( Note: Preliminary studies indicate that the " Taxi" fleet would be a good candidate for outsourcina to a rental car agencv based on vehicle need and the limited mileaae usage.) Evaluating the agencies and employees that are continuous users of the " Taxi" fleet to determine whether the agency is optimally using its own fleet before requesting " Taxi" fleet vehicles. Combine the ADOA and the ADOT " Taxi" Vehicle Fleets into one State Taxi Vehicle Fleet. An analysis of both dispatch sites would be required to determine best usage. ADOT presently manages the ADOA equipment maintenance facility at the Capitol Mall location where ADOA dispatches " Taxi " vehicles. BENEFITS: Centralization and management of State's Light- Duty Vehicle asset to facilitate and expedite " best practices" for fleet procurement and utilization; Ability to move assets within State agencies based on temporary or permanent needs using a combination of purchased or leased vehicles; A State " Taxi" Vehicle Fleet system that meets the intent and directives of A. R. S. § 41- 803, i. e. providing vehicles for short time periods in a cost effective and customer focused manner; A Fleet Administrator in place with the knowledge and expertise to make business decisions for this state asset while taking into account the interests of all stakeholders; Consolidation of ADOA and ADOT " Taxi" fleets will facilitate cost effective utilization and possible inclusion in the State's Competitive Government Program. DISCUSSION: MAINTENANCE FACILITY UTILIZATION GOAL: To review the capacity utilization of the State's Light- Duty Vehicle maintenance facilities and look for opportunities to consolidate and reduce duplication. PROBLEM STATEMENT: Currently seven agencies and/ or departments operate twenty- six maintenance facilities in the State. Ten of these facilities are located in three cities: Phoenix - 6, Tucson - 2, and Flagstaff - 2. Until recently there was little if any cross utilization of maintenance facilities except in emergency situations. A. R. S. 941- 803, which established the ADOA fleet, decentralized vehicle maintenance services to the agencies that owned the vehicles. The fleet users had different needs, e. g., ADOT - heavy duty vehicles, ADOA - light duty vehicles, Game & Fish - 4x4 off road equipment, etc. The service focus was on repairs, not preventive maintenance. Each facility specialized in repairing their " type" of equipment at the expense of preventive maintenance services that are common to all vehicles. Lastly, agency budgets did not lend themselves to interagency expenditures. FINDINGS: OEG conducted site inspections at the following facilities: See MOTOR POOL - SITE INSPECTIONS in Appendix D. ADOA: 1 facility ( leased to ADOT) -- Light- Duty Vehicles ADOT: 17 facilities -- Light- Duty and Heavy Duty Vehicles ADPS: 3 facilities -- Light- Duty Vehicles ( LDV) ADES: 1 facility -- ( on site equipment repair, Coolidge) -- LDV LAND: 1 facility -- ( fire fighting equipment modifications) PARKS: 1 facility -- ( specialized for quick parts replacement) COLISEUM: 1 facility -- ( on site equipment service) GAME & FISH: 1 facility -- Light- Duty Vehicles and Water Craft In 1994, ADOA and GAME & FISH signed an agreement whereby part of GAME & FISH'S fleet is serviced by ADOA. In 1995 this effort, expanded by an Interagency Service Agreement ( ISA) between ADOT and ADOA, transferred all ADOA's maintenance services to ADOT. ( The ADOA- ADOT ISA is reviewed in the next section of this DISCUSSION.) Four factors have come into play that have a positive effect on maintenance consolidation and coordination efforts: I. The State's transportation infrastructure makes most locations accessible to lig ht- duty vehicle equipment. 2. The automotive industry has expanded the light- duty vehicle's operational and mechanical capabilities making it more suitable for meeting agency transportation needs. With light- duty vehicles now representing 68% of the State's fleet there are fewer variances in mechanical configurations. 3. The manufacturers have improved vehicle quality, expanded warranty coverage, and initiated preventive maintenance programs. Preventive maintenance standards equate to an industry benchmark and are now the prime directive at all State maintenance facilities. 4. The industry has reduced the number of " unique to one model" parts. This facilitates greater application of a technician's skills from model to model within a manufacture's product line. It also reduces the parts' inventory a facility has to maintain to expedite repairs. RECOMMENDATIONS: Based on an analysis of available data, OEG recommends the following: The State designate a single Light- Duty Vehicle Maintenance " vendor" for all preventive maintenance, warranty repair coordination, mechanical repairs, body work, and parts purchasing and inventory control for the State's Light- Duty Vehicle fleet. Based on its in- place resources and capabilities ( facility locations, equipment, information management systems, and management and personnel expertise) the Arizona Department of Transportation Equipment Department be designated the " Vendor" until fiscal year end 1997. This recommendation would be implemented via Interagency Service Agreements ( ISA's) between ADOT and each of the agencies currently operating LDV fleets. These agreements would include, at minimum: 1. Clearly defined, vehicle- specific repair performance standards for each maintenance area ( i. e., preventive maintenance, warranty coordination, mechanical repairs, and body work). 2. Detailed Service Pricing to include ( 1) fixed PM rates, parts and labor for preventive maintenance services, and ( 2) industry standard, flat rate repair times, a fixed hourly rate, and competitive parts1 pricing for non-preventive maintenance repairs. 3. Clearly defined customer service performance standards. A " Customer" is defined as ( 1) the agency that purchases the service, and ( 2) the driver assigned to the vehicle. 4. Clearly defined reports ( billings, performance results, customer satisfaction scores and management reports) and the submission schedules. Although opportunity for facility consolidation seems appropriate, OEG does not recommend that the ADOA and the agencies independently undertake this action. Rather, OEG recommends that a cross agency Study Committee for the Consolidation of the State Maintenance Facilities be formed to develop a plan for enterprise- wide implementation by July 1996; The Light Duty Vehicle Maintenance Vendor program be included in the State's 1998 Competitive Government Program; OEG does not recommend that the Arizona Department of Corrections and/ or the State Universities and Community Colleges be included in the consolidation at this time. Additional studies should be conducted once the State Light- Duty Vehicle Asset Administrator and the designated vendor program are in place. BENEFITS: Centralized management of all maintenance services would insure that the state's light duty vehicle asset value is being protected and maximized; * Centralized management of all maintenance facilities would insure that the state's fixed assets are being maintained and utilized to capacity; Standardization of maintenance records would expedite preventive maintenance programs, warranty repairs control, and asset value analysis; Maximized maintenance facility resource utilization would include maintenance facility and/ or repair specialization; Maximized personnel resource utilization including technician productivity measurements; Standardized parts inventory control would embody " best practices" technology; Standardized system for determining cost of repairs and billing for improved maintenance budget management; The program will be competitively bid to assure best practices and prices for services rendered. DISCUSSION: ADOA - ADOT INTERAGENCY SERVICE AGREEMENT GOAL: To review and report the results of the Light- Duty Vehicle Maintenance lnteragency Service Agreement ( ISA) between the Department of Administration and the Department of Transportation. PROBLEM STATEMENT: In January 1995, ADOA and ADOT entered into an lnteragency Service Agreement to transfer all ADOA Light- Duty Vehicle maintenance services, including FTEs, to ADOT's Equipment Services, Highways Division. The transfer started with a pilot at the ADOA Capitol Mall facility and then expanded to enterprise- wide implementation in July 1995. The agreement's primary criteria are that ( 1) ADOT delivers maintenance services at a not- to- exceed cost of 4.1 cents per ADOA vehicle mile, and ( 2) the majority of ADOA maintenance customers be " satisfied" as measured by customer satisfaction questionnaires. ( The ISA's logistics and service specifications are not germane to this discussion.) Prior to the January 1995 date, GAME & FlSH had an ISA in place with ADOA for selected Light- Duty Vehicle maintenance services. This ISA has been incorporated into the ADOA- ADOT ISA. ADOT is now providing Light- Duty Vehicle maintenance services to selected GAME & FlSH vehicles. FINDINGS: After reviewing ADOT's YTD 1995, July - December report and the backup data, OEG confirmed the accuracy of the report and made the following findings: ( See ADOA- ADOT ISA ANALYSIS in Appendix E.) For the first two quarters of the ISA, ADOT's cost for providing maintenance services to ADOT is 3.6 cents per ADOA vehicle mile. ADOA customers gave ADOT an average score of 3.651 on a 5 point scale in response to the Customer Satisfaction question, " Overall, please indicate whether you are more or less satisfied with ADOT caring for your vehicle( s) than you were prior to July 7." Prior to the ISA, ADOA customers outside the Phoenix Metroplex used contracted, private sector maintenance vendors. ADOA has instructed all of its customers to now use ADOT maintenance services but not all have complied. ADOA and ADOT are addressing this situation via the Preventive Maintenance Notification program. ADOA processed 5,192 Work Orders ( July ' 94 to December ' 94) compared to 4,767 processed by ADOT for the same 1995 calendar period. To obtain a service- period- to- service- period comparison, OEG factored in these 425 " No Service" customers to ADOT's report. With the 425 additional customers factored in, ADOT's cost per mile figure rose from 3.6 cents per mile to 3.9 cents per mile, still below the ISA's 4.1 cents per mile cap. ADOA's Preventive Maintenance Notification program has not been fully implemented. ADOT addressed this problem during the second quarter and a solution is in place for the remainder of the ISA term. Although ADOA and ADOT use the same fleet administration software, the agencies1 computer systems are not linked to share information. This situation is being addressed and targeted for correction by the end of the ISA's third quarter. RECOMMENDATIONS: Based on the analysis of the ISA report and interviews with the ADOA and ADOT fleet maintenance management, OEG recommends the following: OEG review the ADOA- ADOT Interagency Service Agreement's third quarter and year end reports and submit its findings to the Joint Legislative Study Committee on State Assets. The ISA be used as a model by the Study Committee for the Consolidation of the State Maintenance Facilities under a single State Maintenance Vendor. BENEFITS: The ISA's success to date makes it a viable working model that will facilitate and expedite the State's maintenance consolidation program. I APPENDICES APPENDIX A: REPORTS, CONTACTS, & INTERVIEWS A. REPORTS: 1. Joint Legislative Budget Committee Staff Report, State of Arizona Light- Duty Vehicles, issued June 1990 2. Project SLIM Review published in July 1992 3. Office for Excellence in Government, Review of the State Vehicle Fleet, completed in Spring 1994 4. The Office of the Auditor General's Performance Audit, Department of Administration, General Services Division, released in October 1 994 5. Arizona Department of Administration, 1994 Risk Management Fixed Asset Annual Report 6. Arizona Department of Transportation, Equipment Services Division, Vehicle Count Report as of December 15, 1995 7. Arizona Department of Transportation, Motor Vehicle Division, Total Vehicle Registration Report and a subset of this report based upon vehicle vin numbers 8. Arizona Department of Administration, Arizona Financial Information System [ AFIS] Report 9. National Association of Fleet Administrators, National Conference of Fleet Administrators, Annual Sunley released August 1994 1 0. Arizona Revised Statutes § 41 - 803 11. Micou Design Group, Renovation Plan for the ADOA Capitol Mall Facility 12. Interagency Service Agreement between ADOA and ADOT, effective date July 1995 13. Kelly Blue Book of Automotive Values -- Software program for model years 1976- 1 995 14. Salt River Project, Competitive Fleet Evaluation dated October 1994 15. Salt River Project, Transportation Services Long Range Plan released September 1992 16. Fleet Administrator Job Descriptions from the follow agencies and companies: Department of Administration Enterprise Rent- A- Car, Inc. Department of Transportation Salt River Project, Inc. State Procurement Office [ ADOA] National Association of Fleet Arizona Public Service, Inc. Administrators B. CONTACTS & INTERVIEWS: ADOT Equipment Maintenance - Payson ADOT Equipment Maintenance - Holbrook ADOT Equipment Maintenance - St. John ADOT Equipment Maintenance - Springerville ADOT Equipment Maintenance - Globe ADOT Equipment Maintenance - Show Low & Hon- Dah ADOT Equipment Maintenance - Prescott ADOT Equipment Maintenance - Safford ADOT Equipment Maintenance - St. David ADOT Equipment Maintenance - Tucson ADOT Equipment Maintenance - Yuma ADOT Equipment Maintenance - Flagstaff ADOT Equipment Maintenance - Kingman ADOT Equipment Maintenance - Page & Fredonia ADOT Equipment Maintenance - Phoenix ADES Maintenance - Coolidge ADPS Maintenance - Phoenix ADPS Maintenance - Tucson ADPS Maintenance - Flagstaff LAND Maintenance - Phoenix COLISEUM Maintenance - Phoenix GAME & FISH Maintenance - Phoenix PARKS Maintenance - Lake Havasu Salt River Project, Inc. - Human Resources Arizona Public Service, Inc. - Budget Department Enterprise Rent- A- Car Arizona State Employees Credit Union National Association of Fleet Administrators ADOA Risk Management ADOT- MVD Data Analysis Section ADOA Human Resources ADOA Maintenance and Taxi Fleet Office ADOA State Procurement Officer ADOA Fleet Management ADOA General Manager - Special Services Division ADOT Equipment Management ADOT Fleet Management OSPB Budget Analyst JBLC Fiscal Analyst AT& T Automotive Services Ryder, Inc CIGNA Corporation - Fleet Administrator APPENDIX B: LIGHT- DUTY VEHICLE COUNT - COMPILATION STATE ADOT OEG ADOA OEG AGENCY OR MVD BEST RISK ESTIMATED DEPARTMENT TOTAL ESTIMATE TOTAL AGE GROUPS AGRICULTURE 28 28 43 PRE 79 13% AHCCCS 70 116 116 AHS 10 10 0 80- 89 36% ARCHIVES 4 4 0 ASU 322 322 454 90- 95 51 % BANKING 1 1 1 BUILDING SAFETY 2 2 1 COLISEUM 6 56 13 COMMERCE 4 4 4 DEAF & BLIND 52 89 89 DEQ 2 2 1 DES 429 423 379 DHS 56 56 77 DOA 1235 1235 1357 DOC 681 958 958 DOT 1358 1358 1560 DPS 1284 1284 1437 AE& MA 8 16 47 GAME & FISH 305 407 407 GEO. SURVEY 5 5 5 LAND 33 33 25 LIBRARIES 1 5 7 LOl7ERY 2 2 0 MINES 6 6 6 NAU 229 229 279 PARKS 47 100 100 PIONEER'S 3 3 0 ACC 2 2 2 UA 698 698 95 1 VETERANS SVCS 1 1 0 TOTALS 6884 746 1 831 9 Total MVD Registered 11,070 Vehicles APPENDIX B: LIGHT- DUTY VEHICLE COMBINED ASSET VALUE - COMPILATION he following calculation process was used: Compute the average value of a vehicle for a model year. [ Note: Ford and Chevrolets were used for the sedan fleet because, together, they represent over 92% of the registered sedans. The " Truck" data represents an averaging of LDV trucks and 4x4 utility vehicles. The Blue Book data started with the 1976 model year.] Compute the percent of that model year's vehicle as a part of the total vehicles for that model year group. Compute an average vehicle asset value for that model year. Add the individual model year values to determine estimated vehicle asset value for the model year group. Multiply the estimated model year group values times the number of estimated vehicles for that model year group. , LIGHT- DUTY VEHICLE COMBINED ASSET VALUE - COMPILATION - YEAR - FORD CHEVY TRUCK TOTAL$$ %/ YEAR $$/ GROUP ASSET $ 38.44 DOLLARS $ 125.63 $ 317.25 $ 581.25 TOTAL $ 10,943.61 TOTAL ASSET TOTAL $ 1,062.56 769 838 1058 1163 1500 1625 1800 1950 1976 77 78 79 0.05 0.15 0.30 0.50 TOTAL $ 4,378.63 2686 $ 1 1,761,006 0.01 0.02 0.03 0.04 0.05 0.10 0.15 0.20 0.30 0.35 1980 81 82 83 84 85 86 87 88 89 675 700 1000 1050 $ 13.54 $ 30.08 $ 51.45 $ 69.31 $ 98.05 $ 21 8.90 $ 418.35 $ 668.00 $ 1,198.50 $ 1,612.45 36% 2300 2725 3200 3825 41 50 4675 5275 6200 7075 8050 700 800 950 1100 1354 1504 1715 1733 1961 2189 2789 3340 3995 4607 1125 1200 1375 1000 1125 1275 2375 2775 3275 3875 1325 1475 1650 1895 2200 2425 2525 31 25 3875 4400 APPENDIX C: FLEET ASSET ADMINISTRATOR OBJECTIVE: To identify the position description including required experience and areas of accountability for a State Light- Duty Vehicle Fleet Administrator. RESEARCH CONDUCTED: In concert with the summary recommendations of this study, the Office for Excellence in Government obtained the following data to facilitate the preparation of a " best" candidate job description for the State Fleet Administrator's position. Gather Sample Job Descriptions of fleet managers Written job descriptions were obtained from various government entities, corporations and professional associations. Included in the data gathering are the following: State Fleet Administrator - State of Arizona Equipment Services Administrator - State of Arizona Fleet Administrator - Owens Illinois Corporation Assistant Director for Vehicle Fleet Services - Cigna Corporation Manager of Fleet Administration - National Association of Fleet Administrators Fleet Administrator - National Association of Fleet Administrators Interview Fleet Managers Interviews were held with managers in the area of fleet management and motor pool assets. Included in the interviews were the following: State Fleet Administrator - ADOA Professional Services Unit Administrator, Procurement - ADOA Equipment Administrator - ADOT Fleet Management Manager - ADOT Vice President and General Manager - Enterprise Rent- A- Car Manager of Transportation Services - Salt River Project Senior Compensation Analyst - Salt River Project Determine Job Requirements Job requirement research in the following areas was conducted: Position Function Knowledge & Skill Requirements Impact of Decisions Complexity of Position Work Relationships Education and Experience Requirements Compensation FINDINGS: The expertise and " bestJJp ractices required to manage the State's Light- Duty Vehicle Asset is in place both in the private and public sector enterprises. RECOMMENDATIONS: Establish a Statewide Fleet Asset Administrator position. Hire a high level executive with a record of success in business re-engineering in the area of asset management. Sample Job Description follows at the end of this exhibit. Working Title: State Fleet Manager Agency: Arizona Department of Administration ( ADOA) Immediate Supervisor: Director of Administration Position Function Position Purpose: The primary purposes of this position maximize the State' Light Duty Vehicle asset value. The incumbent will be responsible for making major and minor changes to the organization structure, methods and procedures, as necessary, to achieve the primary purpose. Reporting Relationships: This position will receive work direction from the Director of ADOA. The incumbent will work in concert with the various agency fleet managers for managing the asset allocations and obtaining all necessary resources to achieve the primary purpose. In addition, the incumbent will act as the Fleet Manger for the Department of Administration. The following organization chart illustrates these relationships. 1, Agency Arlzona Department of Adrn~ nlstrat~ on ADOA D~ rector Agency Fleet c State Fleet Manager Knowledae & Skill Requirements Knowledge or Skill, Description SPECIFIC Vehicle Maintenance and Repair Vehicle Replacement Criteria and Policy Auto Rentals and Leasing Automotive Industry EPA Regulations Vehicle Aftermarket Purchases Control of Licenses and Titles Vehicle Asset management RELATED Life Cycle Costing Capital Asset Management Outsourcing State Government Budgeting State Government Procurement Rate Negotiation Maintenance Agreements Computer Information Systems Management Reporting Asset Management Business Planning Strategic Planning Setting Goals Organization Effectiveness Re- engineering Statistics Performance Measurement and Standards Risk Management Managerial Accounting and Billing Inventory Management Warranty Claims Insurance Analytical Skills Creativity Initiative Leadership Public Speaking Conflict Resolution Group Problem Solving Listening Performance Appraisal Staffing Change Management Rewards and Recognition Persuasion Training Team Building Confrontation Degree of Requirement General Complete Complete Working Working Complete Working Complete Complete Complete General General General Working Complete Working Complete Complete Complete Complete Complete Working Working Working Complete Working Complete General Working Working Complete Complete Complete Complete Complete Complete Complete Working Working Complete Working General Working Working Working Complete Impact of Decisions Direct: The majority of decisions made by the incumbent will directly impact those agencies who use the State's Light- Duty Vehicle asset and those who are responsible for maintaining the asset's value. Indirect: To the extent that costs are reduced, taxpayers will experience a reduction in the costs of government. Complexity of Position Direct Technical Responsibility: The incumbent will allocate the majority of time to planning and policy formulation in order to achieve the primary purposes. Restrictions: Standard restrictions will include the statutes, regulations and policies of state government. The Director of ADOA can override decisions of this position. Total Budget: The incumbent will manage assets totaling approximately $ 55 million and a fleet size between 6,000 and 8,000 vehicles. Work Relationships Internal: The majority of internal contacts will be with the agency fleet managers. On a regular basis the incumbent will be responsible for routine information exchange, interpretation of complex material and gaining cooperation of others on matters of high importance. External: The majority of external contacts may consist of private sector vendors. On a regular basis the incumbent will be responsible for reviewing fleet operations for possible inclusion in the State's Competitive Government Program. Education And Experience Requirements Education: the incumbent will have at least a four year Business degree and a Masters in Business Administration. Work Experience: The incumbent will be a seasoned manager with a record of success in organizational turnaround and have at least ten years of high ! eve! executive experience. Compensation Base Salary: The range for this position will be $ 63,000 to $ 93,000. This is based on recent salary survey data conducted by Salt River Project. Benefits: An average 20% multiplier used in Arizona state government results in a range of $ 12,600 to $ 18,600. Total Compensation: The resulting range is $ 75,600 to $ 1 11,600. APPENDIX D: MOTOR POOL - SITE INSPECTIONS I LOCATION I SVC I SVC I VEH. I SVC I FTE I FTE I LIFTS I PARTS 1 COMMENTS I HRS. I BAYS I TYPE I LEVEL I TECHS I PM- SVC I I DEPT. I CODES: L - Light Duty Vehicle P - Preventive Maintenance, E - FTE Parts Expediter H - Heavy Duty Vehicle M - Light Mechanical, Repair or Replace SVC - Service W - Water Craft R - Repair or Rebuild - Heavy Mechanical D - Double bays, drive through DEPARTMENT OF TRANSPORTATION Phoenix Tucson Flagstaff Payson Holbrook St. John Springerville Show Low Globe Yuma Kingman Prescott Hon- dah St. David Page Fredonia Safford 11 8.5 7.5 7.5 7.5 8 8 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 20 11 8D 2 8 2 2 4 8 4 5D 4D 2 3 4 2 3 L& H L& H L& H L L& H L& H L& H L& H L& H L& H L& H L& H L& H L& H L, H& W L& H L& H 4 2 1 0 1 0 0 0 1 0 I 1 0 0 0 1 ALL ALL ALL P& M ALL P& M P& M P& M ALL P& M ALL ALL P& M ALL ALL P& M P& M 15 9 8 2 7 1 1 4 4 3 6 5 1 3 2 4 16 5 4 0 E, two E, two E Repairs, rebuilds, and fabrication Repairs, rebuilds, and fabrication Building should be replaced 2 0 1 1 1 3 2 2 0 1 0 2 E E E E E E E E Large " Traveling Tech" area Close this and use Springerville Could handle all St. John work Paperwork for 3 sites Team atmosphere very obvious " Real Time" repair mentality Building should be replaced Just opened this winter - snow equip. Being built - SVC SE corner of state Manages Fredonia site Backlog of work = = = = = D = = = = = m = = D = = - = MOTOR POOL - SITE INSPECTIONS: DEPARTMENT OF ADMINISTRATION ( Currently leased to ADOT) ( Phoenix 1 8 1 6 1 L I P I 3 2 I 3 I E I Building should be replaced LOCATION DEPARTMENT OF PUBLIC SAFETY FTE TECHS SVC HRS. DEPARTMENT OF ECONOMIC SECURITY FTE PM- SVC SVC BAYS LAND DEPARTMENT -- Fire Equipment Retrofit LIFTS 4 1 3 1 I 0 [ Phoenix 18 I Two bays with two techs. Specializes in retrofitting fire fighting equipment VEH. TYPE P& M P& M P& M Phoenix Tucson Flagstaff PARKS -- Maintenance Pad SVC LEVEL PARTS DEPT. 4 7 1 2 0 COMMENTS 8 8 8 Coolidge E, two E E L 1 Lake Havasu Parts - Bar codes & Motorcycles R& R Can handle more business Parts - Bar codes, uses inmatelclerical 5 7 3 Building should be rebuilt/ consolidation 8 P& M L L L 2 7.5 Two mobile homes with carports. Light maintenance only. No FTE's technicians. Primarily a storage lot. I I ~ MOTOR POOL - SITE INSPECTIONS: COLISEUM LOCATION ( Phoenix 1 7.5 1 2 I L& H I ALL ( 1 1 I Services equipment at Coliseum complex only. I GAME & FISH SVC HRS. ( Phoenix 18 15 I L& W 1 P& M 13 I I I I I E I Building should be replaced. I MAINTENANCE SITES NOT INCLUDED IN THE SURVEY -- DEPARTMENT OF CORRECTIONS SVC BAYS I LOCATION 1 SVC I VEH. I VEH. TYPE I Douglas 3 I L& H I Tuscon ( 2) Safford Slab I L& H 1 SVC LEVEL 5 4 Yuma Catalina Mt. FTE TECHS FTE PM- SVC L& H L& H 3 2 LIFTS L& H L PARTS DEPT. COMMENTS PENDIX E: ADOA- ADOT ISA ANALYSIS The following analysis includes the maintenance services data provided by ADOT for July to December 1995. Note: ADOA stated the Oct- Dec shortfall in ADOT's results is historic due to holiday vacations. I 1 ~ ADOTIS A QUARTERLY REPORTS ADOT REPORTS JUL. - DEC. 1995 I CATEGORY 9PERATlNG REVENUES REVENUE: 4.1 CENTS PER MILE ( IST QTR = 6,365,351 MILES) ( 2ND QTR = 5,535,911 MILES) QPERATING EXPENSES VEHICLE REPAIRS LABOR COST PARTS COST COMMERCIAL SERVICES FIXED SHOP LEASE TELEPHONE LINES VARIABLE ( PRORATED PER QTR) SHOP TOOLS SAFETY SHOES SAFETY GLASSES MISC. REPAIRS 8 PM W. 0. S FUEL PURCHASES GROSS REVENUES GROSS OPERATING EXPENSES NET OPERATING PROFITI( LOSS1 ADOA COST: CENTS PER MILE TRANSITION EXPENDITURES OSHA AIR QUALITY EQUIPMENT ADJUSTED NET OPERATING PllL) ADJUSTED NET CENTS PER MILE FIRST QTR $ 260,979.39 $ 81,556.75 $ 85,455.35 $ 22,337.66 $ 5.525.00 $ 187.50 $ 124.21 $ 35.40 $ 5.95 $ 262.66 $ 19.63 $ 260,979.39 $ 1 95,322.61 $ 65,656.78 $ 0.031 $ 2,469.25 $ 63,000.03 $ 0.031 WORK ORDERS LABOR HOURS SECOND QTR $ 226,972.35 $ 1 15,486.25 $ 91,742.69 $ 14,156.32 $ 5,525.00 $ 1 87.50 $ 124.21 $ 35.40 $ 5.95 $ 465.30 $ 226,972.35 $ 227,541 . I2 ($ 568.77) $ 0.041 $ 2,469.25 ($ 3.225.52) $ 0.042 20241 27431 4767 2965.7 4199.5 71 65.2 YTD TOTALS $ 487,951.74 $ 1 97,043.00 $ 1 77,198.04 $ 36,493.98 $ 1 1,050.00 $ 375.00 $ 248.42 $ 70.80 $ 1 1.90 $ 727.96 19.63 $ 487,951.74 $ 422,863.73 $ 65,088.01 $ 0.036 $ 4,938.50 $ 59.774.51 S 0.036

you wish to report:

Your comment:

Your Name:

Submit

Cancel

...

Find results with:

Searching collections:

Home Office for Excellence in Government report on State of Arizona's light-duty vehicle fleet

Office for Excellence in Government report on State of Arizona's light-duty vehicle fleet

Description