Things Every CFO & CPO Should Know About Managing Fleet Office of Management and Enterprise Fleet Management March 26, 2014

Introduction 1.Fleet Use Scenarios-Assessment 2.Contracts & Processes 3.Trip Calculator/Optimizer 4.Fleet Management Services 5.Driver Behavior 6.Trends & Initiatives 2 What is the authority? What are the resources? What to remember? What to utilized? What to monitor? What to watch for?

Fleet Use Scenarios-Assessment Are you an agency that – Owns vehicles – Leases vehicles – Rents vehicles – Provides mileage reimbursement – Applies combination of any or all listed above – Has nothing to do with travel 3

Fleet Owning Agencies (1/5) 1.Vehicle Acquisition Confirm Authority (47 O.S. §156) Owning now does not mean authority 10,000 pounds and more (47 O.S. §156.3) Submit Vehicle Acquisition Request (DCAM-Form-FM-016) for approval Submit Vehicle Inventory Data Sheet (DCAM-Form-FM-017) for inventory Reasons and Conditions Project Revenues and Expenditures Conduct Mission Analysis; Consider Vehicle Downsizing Pursue Alternative Fuel Replacement Targets (State and Federal) Sources Buying new through SW035 and SW035C, Mandatory (M) Buying new outside SW035 Buying used from Federal or State Surplus, or state agencies 4

Fleet Owning Agencies (2/5) 2.Vehicle Maintenance (Service and Parts) Servicing in the own garage Servicing in Fleet Management Servicing through SW767, non-Mandatory (nM) Getting parts through SW307 (nM), & tires through SW024 (M) Servicing and getting parts outside OK contracts and Fleet Management 5

Fleet Owning Agencies (3/5) 3.Fueling Vehicles and Paying for Fleet Services Fleet Card, SW101 (M) Remembering about Sales Tax Exemption Using Level 3 sites for Data and Federal Fuel Tax Exemption 6

Fleet Owning Agencies (4/5) 4.Other Vehicle Contracts AVL System Management & Road Assistance SW799 (M) 5. Vehicle Disposal Disposal conditions (74 O.S. §78b) 2 years or older 60,000 miles or more Repairs needed exceed $2,500 DCAM-Form-SS-001V must be submitted to Fleet first Selling vehicles through Property Distribution (State Surplus) Selling vehicle through own auctions or sale events 7

Fleet Owning Agencies (5/5) 5. Vehicle Disposal (cont.) Oklahoma: Fleet Management: 120,000 miles Dept. of Transportation: 175,000 Dept. Public Safety: 115,000 – 170,000 Other States Utah: 105,000 miles (min 2 years, max 12 years) Oregon: 115,000 (3 years) – 140,000 (8years) Georgia: 135,000 miles Illinois: 150,000 miles 8

Vehicle Rental State Rental : Fleet Management: fixed rate plus mileage after 80 miles NEW: online reservations: OU: fixed rate plus fuel OSU: fixed rate plus mileage Vendor Rental : vendors on SW771 (nM): fixed rate plus fuel (insurance incl.) vendors outside on SW771: fixed rate plus fuel (insurance n-incl.) Note: no 6% tax on state rentals from vendors 9

Mileage Reimbursement Mileage Reimbursement (74 O.S. §85.45k) Current IRS rate $0.560 (74 O.S. §500.2) Fleet Management Calculator / Trip Optimizer (74 O.S. §85.45l) Over 100 miles per day Any way appropriated agencies Smallest vehicle for travel needed 10

Leasing Vehicles 11 Lease Rates: - Include: maintenance, road assistance, insurance, loaner (OKC) - Do not include: fuel, pike & deductible - Rate based on utilization - Utilization monitored continuously - Pricing established at beginning of new lease - Pricing may be revised at each Fiscal Year

Statutory Requirements (1/3) 1.Reporting (74 O.S. §110.3.) Vehicle Monthly Meter and Cost - Leasing agencies monthly reporting - Owning agencies monthly reporting Acquisition and Sale Inventory 2.Utilization Minimum 12,000 miles per year / 1,000 miles per month (74 O.S. §78. C. 8.) 3.Vehicle Marking Conspicuous lettering stating (47 O.S. §151) “State of Oklahoma” the name of the department or institution; unit # highly recommended Confidential vehicles, exemptions (74 O.S. §78. D.5.) On an agency letterhead to Fleet Manager Employee name and Unit # Reason clearly stated and relate to employee job mission 12

Statutory Requirements (2/3) 4.Work from Home; Driving Vehicle Home Agency Authorization for Commuting in State Vehicle, (022) 47 O.S. §156.1 Only essential employees approved by Governor (and others) in the performance of their official duties Employee who regularly receives after hours emergency calls (75 miles limit round trip, and authorization to be reviewed every 60 days) Listed law enforcement and some other agencies agency 2007 OK AG 18 Employee's assigned place of employment is his/her residence and use of a state vehicle is necessary in the performance of the employee's official duty. 13

Statutory Requirements (3/3) 5.Insurance Liability [See 51 O.S. § 154(A)] provided by agency standard liability coverage through Risk Management: Twenty-five Thousand Dollars ($25,000) for any claim or to any claimant who has more than one claim for loss of property arising out of a single act, accident, or occurrence; Except as otherwise provided in this paragraph,... to any claimant for a claim for any other loss arising out of a single act, accident, or occurrence. The limit of liability for the state... shall not exceed one Hundred Seventy-five Thousand Dollars ($175,000).... One Million Dollars ($1,000,000) for any number of claims arising out of a single occurrence or accident. Applicability On duty either in state of personal vehicle Covers state employees only (business visitors covered by their own workers comp) Vehicle Physical Damage (optionally through Risk Management): deductible $2,500 for vehicles up to $50,000; $5,000 over $50,000 Note: Does not apply to personal vehicles use on state business 14

Fleet Processes Leasing Agencies Roadside Assistance (A001) Accidents and Incidents (A002) Fleet Management Calculator / Trip Optimizer (D001) Fleet Card (F001) Preventive Maintenance Services for State-Owned Vehicles (G001) Non-Reporting Automatic Vehicle Location (AVL ) Units G002 Monthly Lease (L001) Monthly Meter Reading (MMR/QMR) (L002) Vehicle Sharing - Creating Reservations (L003) Universal CNG Vehicle Self-Service Fueling (F002) Owning Agencies Owning Agencies Vehicle Management (V001) 15

Driver Behavior Policies - Driver Responsibility Certification (015C) Smoking, texting, driving under influence Fueling and Fleet Purchases Suspended DL Damages Technology – Automatic Vehicle Location Sudden Stops Speeding Idling Training Defensive Driving Class offered by Fleet Management 6-hour one day class available to all state agencies $30 per person (10 attendees) Must be taken within 6 months from the caused accident (OAC 580: (3)) 16

Initiatives Fleet Inventory o Transparency (2012 HB2647) o Fleet System (M5) Expansion o Owning Agencies o Leasing Agencies CNG o NASPO MOU & SW035C o CNG fill sites: 75+ (10% in US) o CNG Town Hall Meetings: Blackwell (Billings & Ponca City), McAlester, Antlers, Durant, Alva/Cherokee 17

Questions 18 Office of Management and Enterprise Services Division of Capital Assets Management Fleet Management 317 NE 31st Street, Suite A Oklahoma City, OK Phone: (405) Fax: (405)