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ADMINISTRATIVE ORDER 2025-06
WHEREAS, The City of Bozeman is committed to maintaining safe, efficient, and cost-effective
management of its vehicle and equipment fleet; and
WHEREAS, the Vehicle/Equipment Replacement Policy Amended February 7", 2012, in
Administrative Order 2010-04 no longer reflects the operational, fiscal, and sustainability goals
of the City; and
WHEREAS, the City has developed a new Fleet Management Policy to align with best practices
in asset management, environmental stewardship, and departmental accountability;
NOW, THEREFORE, IT IS ORDERED THAT, pursuant to my authority as City Manager, I
hereby adopt the attached City of Bozeman Fleet Management Policy as Administrative Order
2025-06
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Dated this th day of August, 2025
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Chuck Winn
City Manager
Administrative Order 2025-06
Page 1
E MAN MT
CITY OF BOZEMAN
POLICIES & PROCEDURES
FLEET MANAGEMENT POLICY
(Replaces Administrative Order ?010-04)
I. Purpose
The City is committed to the efficient, cost-effective, and sustainable management of its fleet to
support essential public services. This policy establishes standardized guidelines for the
addition of vehicles and heavy equipment to the City's Capital Improvement Program (CIP) or
annual budget. It ensures that fleet expansion and replacement align with operational needs,
fiscal responsibility, and long-term capital planning.
A well-managed fleet is essential for maintaining public safety, supporting infrastructure and
utility services, and meeting the daily operational needs of City departments. This policy
promotes accountability, extends asset life cycles, and supports environmental sustainability
through data-informed decision-making and consistent criteria for vehicle replacement.
All vehicle and heavy equipment purchases must comply with the City's Procurement Policy and
other applicable administrative orders, available on Laserfiche under City Commission >
Administrative Orders/Internal Policies.
II. Scope & Applicability
This policy applies to all City departments and to all funds managed or controlled by the City.
Any City employee involved in the acquisition, operation, maintenance, monitoring, or disposal
of vehicles or equipment covered under this policy is required to be familiar with and adhere to
the provisions outlined herein, as well as any related administrative orders.
For the purposes of this policy:
• Vehicles are defined as self-propelled, road-legal units used for transporting passengers
or cargo. Examples include, but are not limited to: cars, motorcycles, sedans, minivans,
SUVs, and light- to full-size pickup trucks.
• Equipment refers to heavy machinery and specialized vehicles designed to support
municipal functions such as construction, maintenance, public works, and infrastructure
services. Examples include graders, backhoes, loaders, sweepers, and other large
assets used in the operation and maintenance of roads, utilities, parks, sanitation, and
emergency response.
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III. Fleet Management Committee
A Fleet Management Committee shall consist of the Fleet Manager, the purchasing Department
designee, and a designee from the Finance Department. This committee is responsible for
reviewing all proposed vehicle and equipment replacements or additions before inclusion in the
CIP or Biennial Budget.
The Committee shall meet at least once annually to review and approve proposed additions and
replacements in the 5-year CIP. It shall also review this policy at least once every two years.
The Committee is responsible for ensuring all purchases comply with this policy.
IV. Guidelines for Adding Vehicles/Heavy Equipment to the Capital Plan
or Budget
This policy applies to all vehicle and equipment replacements. It provides criteria to assess
whether early replacement of underperforming assets is financially justified.
Key considerations include:
• Fuel costs for the first 100,000 miles, based on EPA ratings and current fuel prices.
• Appropriateness of vehicle size for operational needs, with preference for the smallest
suitable vehicle, including electric bicycles.
• Trade-in value and potential carbon reduction.
• Fuel efficiency. Requests for non-diesel, non-alternative fuel, or non-electric vehicles
must include justification.
• Viability of alternative fuel vehicles, based on task performance and available
infrastructure.
• Emergency equipment (e.g., fire engines, ladders) may be exempted by the City
Manager or designee if required for life-safety services.
1. Vehicle Replacements
i. Cars, Pickup Trucks, and SUVs
Vehicles may be considered for replacement when two of the following are met:
• 10 years from purchase date
• 100,000 miles (adjusted for idle time)
• 65% of original purchase price spent on repairs/maintenance
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The Fleet Department will manage procurement once vehicles are approved in the
budget.
ii. Police Patrol Vehicles
Replacement every 5 years or as determined by the Chief of Police, based on mileage,
age, and department needs.
Effective mileage calculations:
• If no hour meter: Add 33% to odometer mileage.
• If hour meter available: Multiply hours by 33 and add to mileage.
Specialized equipment will be evaluated for reuse and removed prior to disposal.
Disposal follows state law. The Chief of Police is encouraged, but not required, to
consult the Committee. Compliance with Procurement Policy is mandatory.
iii. Fire Department
Apparatus such as ambulances and fire engines are exempt and require City Manager
approval. All other vehicles follow standard procedures.
iv. Solid Waste Vehicles
Replacement criteria:
• Side Load Trucks: 6 years or 7,000 hours
• Front Load Trucks: 8 years or 10,000 hours
• Roll-off Trucks: Replacement when repair costs equal 50% of new truck cost
v. Capital Equipment/ Heavy Equipment
Heavy equipment should be evaluated for replacement based on industry best practices,
exceeds 65% of its original purchase price in repairs, or fails to meet operational, safety,
or environmental standards. Department heads shall coordinate with Fleet Management
to review asset performance annually.
2. New Vehicles
Before adding new vehicles, the Committee will consider:
• New staffing positions
• Departmental needs
• Operational efficiency
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V. Procurement Guidelines
These are in addition to the City's Procurement Policy. These guidelines align with the Climate
Protection Plan (TLU-3).
The Committee will ensure:
• Budgeted vehicles meet criteria in Section III.
• The type of vehicle and procurement method matches the adopted budget.
• Disposals or hand-downs align with budget expectations.
If a vehicle is designated as a trade-in, it must be traded. If handed down, the receiving
department must agree and the vehicle must:
• Be in good condition inside and out
• Meet or not exceed replacement criteria
• Operate reliably
VI. Maintenance of City Fleet
Departments must contact the Fleet Manager before performing maintenance.
The Fleet Manager will ensure a maintenance record is kept in Fleet Management Software,
including:
• Mileage and hours at service
• Internal and external repair costs
• Utilization data
• Downtime and reason for out-of-service
VII. Exceptions
Exceptions may be approved by the City Manager or designee, if funding is available, in the
following cases:
• Emergency replacement due to mechanical failure or accident
• Depreciated vehicle passed to another department
• Vehicle unfit for purpose (e.g., lemon, safety issues)
The Committee must justify exceptions, and these must be documented.
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VIII. Disposals
All disposals must comply with MCA §7-8-4201 — Disposal or Lease of Municipal Property,
as well as any other applicable provisions of Montana State Law.
Before disposing of any vehicle or equipment, the responsible department must obtain a
Disposal Request Form from the Finance Department. This form must be submitted
electronically and will be routed for the appropriate approvals in accordance with established
City procedures.
For any asset transfers between funds, departments must coordinate directly with the Finance
Department to ensure proper accounting and compliance with all applicable financial
regulations.
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Administrative Order No. 2010-04
Vehicle/Equipment Replacement ]Policy
AMENDED February 7, 2012
February 7, 2012
It is hereby ordered:
1. Administrative Order No. 2010-04 which was created on March 10, 2010 is hereby
amended to revise the replacement of police patrol vehicles and extend the years and
mileage for replacement of cars, pickup trucks and SUVs.
The following order is effective immediately.
DATED this 7th day of February, 2012.
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Chris A. Kukulski, City Manager
Amended Vehicle Replacement Policy- February 7, 2012 Page 1
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ADMINISTRATIVE ORDER NO. 2010 - 04
AMENDED FEBRUARY 7, 2012
A Vehicle Replacement Committee is hereby appointed to consist of the Streets
Superintendent, Vehicle Maintenance Foreman (or designee), and the Division or Department
I-lead (or designee) of the to-be-replaced vehicle or equipment. This Committee is charged with
the review of:
• every proposed vehicle/equipment replacement during the annual Capital Improvement
Program (CIP) process, and
• every unscheduled replacement request.
The following guidelines shall be followed, with leeway given to the Committee to vary from
these guidelines when necessary. In such instances, the CIP detail sheet shall include the
Committee's justification of why the vehicle/equipment is not being replaced under these
guidelines. The Department Director of the purchased vehicle or equipment is responsible
to ensure compliance with this policy.
A. Capital Improvements Program:
• The Committee will develop guidelines to determine vehicle utilization to ensure
that the requested vehicle is justifiably needed by the requesting department.
• The Committee will ensure the type of vehicle designated in the CIP is the type of
vehicle purchased for the department, as this is the type of vehicle that the
Commission reviewed and approved when adopting the CIP. For example, if an
S-10 pickup is specified, the department will not be able to purchase a I-ton
dually.
• The Committee will ensure that if a vehicle is designated in the CIP to be traded
in for the purchase of a new vehicle, the so designated vehicle will be traded in.
• The Committee will ensure that if a vehicle is designated in the CIP is to be
handed down to another department, that the receiving department is willing to
accept the handed down vehicle. Conditions considered for acceptance will
include, but are not limited to: that the vehicle is clean, inside and out; that the
interior is in good repair; that the exterior is in good repair; that the vehicle runs
and operates well; and TLU-3, Modify Vehicle Purchasing Policy, of the Climate
Protection Plan.
• The Committee will ensure that if a vehicle is designated in the CIP to be handed
down to another department that the designated department is in need of the
handed down vehicle. In many cases, this may require the designated department
to eliminate one of their older vehicles.
Amended Vehicle Replacement Policy- February 7, 2012 Page 2
B. Maintenance Records: A maintenance record shall be maintained for every
vehicle/equipment. This record will be kept in the Vehicle Maintenance Division. In
order to ensure the record is accurate, a copy of ALL invoices for maintenance or
repair of a vehicle/equipment shall be submitted to the Vehicle Maintenance
Division. The record shall include, at a minimum:
® Dates and mileage/hours of oil changes and services
® Dates and mileage/hours and costs of all repair work and who completed the
repair (i.e. City Vehicle Maintenance; PD Vehicle Maintenance; equipment
operator;XYZ Vehicle Repair)
• Dates and mileage of tire replacement, rotation, and/or snow tire exchange
® Dates and mileage of commercial company vehicle cleaning, if applicable
® Record of Out of Service times and reasons.
C. Use of Vehicle/equipment: The use of the vehicle/equipment will be taken into
consideration.
D. Police Patrol Vehicles:
® The Chief of Police or designee is encouraged to consult with the Vehicle
Replacement Committee prior to ordering vehicles, but is not required to do so by
this order.
® A police patrol vehicle shall be replaced after five (5) years of service and/or at
the discretion of the Chief of Police. Mileage and age of the vehicle, as well as
current/future department needs, will be taken into consideration when patrol
vehicles are being evaluated for rotation from the patrol fleet. The current
industry standard for calculating the effective mileage of a police vehicle will also
be considered. This industry standard is to add 33% to the actual odometer
mileage to reflect idle time and driving conditions.
® Specialized police equipment (computer, radio, light bar, siren, video camera,
radar, etc.) will be evaluated for reuse during the replacement process. All
specialized equipment will be removed from the vehicles prior to disposal or sale.
® The interior and exterior of each police patrol vehicle shall be cleaned on an as-
needed basis so as to present a professional image.
E. Fire Department:
® Fire Department apparatus (engines and ladders) and other related emergency
equipment having internal combustion engines may be exempted from this
process by the City Manager or his designee.
® All other fire department vehicles must follow this process.
F. Cars, pickup trucks, and SUVs:
® These vehicles will be considered for replacement every 20 years or at/near
150,000 miles. Non monetary factors will be considered in the replacement
program.
® If a vehicle reaches 150,000 miles before 20 years of service, the Committee shall
review the maintenance records to determine if the vehicle should remain in
service or be replaced.
Amended Vehicle Replacement Policy- February 7, 2012 Page 3
® Replacement of components of the vehicle may be necessary during this period,
and consideration shall be given to the cost of that replacement vs, total vehicle
replacement (i.e. the bed on a 1-ton truck may need replaced when the rest of the
vehicle is still in good condition)
G. TLU-3 of the Climate Action Plan:
This Policy shall be considered for all vehicle replacements. It will be used to determine
if it makes financial sense to replace a poor performing vehicle for a higher performing
vehicle sooner than the above replacement schedules stipulate. Per the Plan, the
following will be specifically considered:
® Fuel costs for the first 150,000 miles of operation based on EPA mileage rating
and current fuel costs.
® Whether the existing vehicle is the smallest size needed for the job (i.e.
Suburban versus Impala). The vehicle purchased should be the smallest size
needed for the job, including consideration for bicycles.
® Whether trade-in value plus fuel efficiency/carbon reduction equal a justification
to replace the vehicle.
® Fuel efficiency. If a department requests a vehicle that is not diesel or
alternative fuel, the department must write a justification for the reason as part
of the requisition.
® Whether an electric vehicle is a viable option.
® When necessary to provide adequate and reasonable fire or other life-safety
services, Fire Department apparatus (engines and ladders) and other emergency
equipment having internal combustion engines, may be exempted from this
section by the City Manager or his designee.
H. Emergency Replacement:
® Should a vehicle need to be replaced outside of the CIP schedule due to major
mechanical failure or accident damage, the Vehicle Replacement Committee
must approve the selected replacement vehicle to ensure it meets the standards
of this administrative order.
I. Exceptions:
® Exceptions to this administrative order may be granted when a vehicle is
depreciated out of one department and passed down to another department.
Example: PD cars are often passed down, as are some enterprise fund vehicles.
® If there is a problem with a vehicle, i.e, it wasn't the right vehicle for the job or
it's a lemon, consultation shall be made with the Vehicle Replacement
Committee, and a Committee recommendation will be made during CIP review
for the replacement
Amended Vehicle Replacement Policy- February 7, 2012 Page 4