HomeMy WebLinkAboutC2. Leasing Program Hybrid
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Craig Woolard, Public Works Director
SUBJECT: Pilot Program to Improve Light Duty Fleet MEETING DATE: August 3, 2015
AGENDA ITEM TYPE: Consent Agenda
RECOMMENDATION: Approve leasing of hybrid vehicles for use by City staff
BACKGROUND: Much of the City’s light duty fleet, defined as vehicles with a primary purpose of transporting staff, is in poor condition. Historically, many light duty vehicles have been passed down between departments or purchased as used vehicles. The result is a light duty
fleet of aged, inefficient and high maintenance vehicles. Much of the fleet is unsuitable for
travel outside the City limits. In addition, improving the efficiency of the light duty fleet was
identified in the “Greenfleet Petroleum Reduction Plan” as a way to reduce Bozeman’s greenhouse gas emissions to help meet our climate action goals.
Public Works has initiated a program to improve the light duty fleet by purchasing or leasing
more fuel efficient vehicles, and by working to develop a more functional “vehicle share”
process between employees in different departments and locations. Funds for beginning these improvements were included in the FY16 budget. But because these fleet improvement actions are a significant departure from past practice, we wanted explicitly inform the Commission about
upcoming leases and purchases.
Within the Department of Public Works, the strategy for improving the light duty fleet includes the following actions.
• Any vehicle replacements will be hybrid vehicles (Toyota Prius or equivalent) purchased
through the State of Montana vehicle bid process.
• Light duty trucks, when required for and approved by the Public Works Director hauling or towing equipment, will be Ford F150 Ecoboost or equivalent purchased through the
State of Montana vehicle bid process.
• Aged and maintenance intensive light duty vehicles will be sold. Hybrid vehicles will be leased through the State of Montana vehicle bid process.
In FY16, the following tasks will be completed to the light duty fleet. These sales, purchases and
leases are in addition to the vehicle purchases specifically identified in the FY16 budget.
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• The Water Reclamation Facility Dodge Durango, which was totaled in an accident this
spring, was replaced using insurance settlement money with a Toyota Prius purchased at
a price below the State of Montana vehicle contract price.
• In the Engineering Division, the following light duty vehicles will be sold at auction:
o 2001 Chevy Impala handed down from the Police Department. This vehicle has
120,000 miles and front end problems. o 1995 Ford Explorer handed down from the Police Department. This vehicle has 110,000 miles and has recently dropped a cylinder and is in need of a major
engine overhaul.
o 1999 Chevy pickup that was purchased used in 2002. This vehicle has 78,000
miles and failing brakes, steering and suspension. o 1993 Chevy Lumina handed down from the Police Department. This vehicle has 116,000 miles and engine problems, electrical issues, and rear suspension
problems.
o 1999 Chevy Lumina bought used from State surplus in 2004. This vehicle has
125,000 miles and engine problems, failed air conditioning, worn shift linkage, failed seat cushions, rear suspension problems and brake system failures. o 1998 Nissan Sentra bought used in 2000. This vehicle has 55,000 miles and a
manual transmission problems and failing air conditioning.
Using the proceeds from these sales and funding from the operating budget, Public Works will purchase one F150 light duty pickup (or equivalent) for use by engineering staff who routinely need to carry valve keys, street signs and other equipment for their field work. Public Works
will also lease 4 Toyota Prius cars. Three of the vehicles will be managed as a fleet pool for the
Engineering and GIS Divisions. Public Works will manage one Prius as a fleet vehicle for use
by the entire City of Bozeman staff for travel within and out of the City. This vehicle will largely eliminate the need for staff to take private vehicles on out of town work trips.
Future phases of a “greener” fleet would potentially include an expanded pool of shared light-
vehicles and shared equipment that is charged back to a department based on time-used, rental or
leasing of fuel efficient vehicles for light-duty and/or short-term needs. UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: We will be working within the approved budget for FY16 and will make use of opportunities (such as the insurance reimbursement) to improve the fleet. In general, we
will use the proceeds from the sale of older vehicles to offset some of the costs of
leasing/purchasing newer hybrids. At this point in time, we are unsure how much money will
come from the auction. Purchase of a Toyota Prius is $24,000. Purchase of an F150 Ecoboost is $30,000. Prius lease rates are $260 /month.
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