Georgia Fleet Advisory Council GFAC

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Georgia Fleet Advisory Council (GFAC)
March 2009
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Agenda

• Welcome
• State fleet program updates
• Low Use Vehicle Categories
• Risk Update Accident Reporting Process, Hows my
  driving Program?
• Correcting your WEX mileage errors
• Break
• VITAL changes User Input Screens
• ARI Panel Questions, Comments, Feedback
• Surplus Property Update
• Power of a Penny Best Practices in fleet
  rightsizing
• Open discussion

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Program Contact Changes

• Fleet Administration Steve Saltzgiver
• steve.saltzgiver_at_doas.ga.gov or 404-651-7263
• VITAL Systems - Jim Sever
• jim.sever_at_doas.ga.gov or 404-657-6907
• Vehicle/MV1/Training Bobby Arrington
• bobby.arrington_at_doas.ga.gov or 404-657-6908
• VITAL Data/Reports John Wynn
• john.wynn_at_doas.ga.gov or 404-657-6930
• VITAL Programming/Interfaces Lixian Liu
• lixian.liu_at_doas.ga.gov or 404-657-7234
• ARI/WEX Programs Roger Kennedy
• roger.kennedy_at_doas.ga.gov or 404-656-6295
• General Fleet Information Inquiries
• gafleet_at_doas.ga.gov

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Why does Low Use matter?

• Vehicles always cost money and continue to incur
  costs used or not
• Vehicles continue to lose residual value
• Indirect costs can be costly with vehicle
  ownership. What are indirect costs?
• Parking space, admin data processing expenses,
  safety liability, parts inventory, insurance,
  inspections, licensing, personnel labor expenses
  reporting tasks, political capital, etc.
• Establish Low Use codes, Why?
• Compare Low Use units against class average
  aggregate miles

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Identifying Low Use vehicles

• What constitutes Low Miles?
• Less than 50 of other vehicles in same class or
  type
• Standard Example 50 of 14,000 7,000 miles
• Campus Example 50 of 5,000 2,500 miles
• Identifying Low Use by fuel consumption
• Use average fleet MPG
• Example 20 MPG x 350 gals 7,000 miles

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Second Tier
First Tier
Low Use Vehicle Categories
1. ST Stationary Use
2. CS Confined Space
3. HS Homeland Security
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Second Tier
First Tier
Low Use Vehicle Categories
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Risk Update
March 2009
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Correcting WEX ErrorsBobby Arrington
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WEX Error Correction Rules to Remember

• If New odometer reading is Correct - Then -
  Modify Old
• Odometer reading in VITAL and enter New Reading
• If New odometer reading is not correct Then
  obtain correct odometer reading from driver
  then enter new reading into VITAL.
• When entering a new odometer reading you have to
  enter the date and time of the transaction.

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BREAK
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Future of VITALJim Sever
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VITAL EXPRESS
Online Electronic Forms
VITAL Fleet Management System
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Panel ARI questions and answers
March 2009
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Surplus Property Up-date
Georgia Fleet Advisory Council Meeting March 12,
2009
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Surplus Property Division Up-date

• Self-funded Division, revenue generated from
• Administrative service charges
• Proceeds of sales
• To date in FY-09, 66 of sales proceeds returned
  to funded agencies
• Strategic Plan
• COG analysis
• Heavy equipment and vehicles were 1.4 of
  inventory and 69.4 of revenue
• 2 year plan to phase out warehouses
• Completely virtual disposal

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Surplus Property Division Up-date cont.

• Budget reductions had negative impact
• Vehicle purchase moratorium
• Decreased quality and ROI for items that were
  surplused
• FY-09 Q1 ended -150k
• October 2008
• Closed warehouses, RIF 23 personnel
• Retained administrative staff in 3 regions
• All disposal now conducted on-site

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Surplus Vehicle Transactions
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How to Surplus Vehicles

• Complete Transfer form
• Other documents and/or photo may be needed
• E-mail to appropriate Surplus Regional Office
• northstar_at_doas.ga.gov Tucker
  770-414-6468
• eaststar_at_doas.ga.gov Swainsboro 478-289-2623
• weststar_at_doas.ga.gov Americus 229-931-9404
• Surplus staff will contact to discuss disposal
  options

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• Transfer Form
• OFM approval (transfers only)
• Completed Inspection Sheet
• Photos (at least 4 usable photos)
• Front corner to show grille and side
• Opposite rear corner to show rear and opposing
  side
• Interior
• Engine
• Any damage
• Accessory equipment

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Vehicle Disposal Methods
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Vehicle Disposal Options

• On-site
• Offer for redistribution 5 days on DOAS site
• Agency retains title keys
• Schedule inspection and pick-up times with agency
• Agency will receive Bill of Sale
• Transfer title when picked up
• Saves time and money, no transportation
• ARI Test (limited time and quantity)
• Offer for redistribution 5 days on DOAS site
• Agency send all documents to surplus (retains
  keys)
• Agency pays towing/transportation (direct cost)
• Saves time and storage cost

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Surplus Contacts
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Power of a Penny Right-sizing your fleet
March 2009
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Power of a Penny Right-sizing can save thousands

• What is fleet right-sizing?
• Why is right-sizing important?
• How does right-sizing your fleet work?
• How much can you save?
• What does a vehicle cost?
• How do you implement right-sizing changes in your
  agency?
• Note Reducing the cost per mile by one single
  penny in Georgias fleet can save upwards of 2
  million dollars a year!

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What is fleet right-sizing?

• Recognizing that a transportation solution does
  not always require a vehicle
• Understanding the value or cost of a
  vehicle/transportation solution
• Understanding proper vehicle assignment,
  application and sizing
• Continuous and rigorous review of vehicle size,
  application and use
• Making changes and reducing fleet size as needed

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Why is right-sizing important?

• Right-sizing saves valuable time and budget
  expenses
• Right-sizing demonstrates fiscal discipline and
  responsibility
• Right-sizing exhibits management's political
  expedience and sensitivity
• Right-sizing increases fleet management
  credibility
• Right-sizing makes you a hero in your agency
• Right-sizing is the right thing to do!

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How does right-sizing your fleet work?

• Most fleets are 10-20 larger than needed
• Identify Low Use vehicles
• Identify alternate transportation solutions
• Rental vehicle use
• Short-term leasing
• Pooling vehicles and car pooling
• POV mileage reimbursements
• Seasonable vehicle use
• Public transportation
• Tele-work arrangements
• Identify Break-even cost of other solutions
• Implementing change where needed

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What does a vehicle cost?

• Owned vehicle
• Cost/Depreciation 300 month
• Fuel/Maintenance 154 month
• Total Cost 5,448
• Leased vehicle
• Lease payment 352
• Fuel/Maintenance 154 month
• Total Cost 6,072
• POV Mileage Reimbursement
• 0.55 x 12,000 miles
• Total Cost 6,600

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How much can you save and what does a vehicle
cost?

• Tip For implicity ake alway think of
  vehicle in term of tate dollar...
• Every vehicle conservatively costs at least
  5,000 plus dollars annually to operate
• Reducing your fleet by 10 vehicles equals a
  50,000 dollar annual savings
• Example Since November 2008 the State fleet has
  been reduced by 64 vehicles which is the
  equivalent of 305,000 dollars a year!

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How do you implement right-sizing changes in your
agency?

• Identify Break-even cost of other solutions
• Ensure fleet use, repair and fuel data is
  collected timely (i.e. VITAL and WEX)
• Ensure data is accurate and accessible
• Perform regular analysis of fleet vehicle
  application use, days operated, mileage used and
  fuel consumed
• Create reports and consult with and show users
  their costs, use and options to owning a Low Use
  vehicle
• Recommend and implement change, where needed

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Open Discussion

• What questions or concerns do you have about the
  state fleet operation?
• What can DOAS do to improve services offered to
  your agency?
• Other issues?