Things Every CFO & CPO Should Know About Managing Fleet Office of Management and Enterprise Services Fleet Management April, 2015

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

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 (1/6) 1.Vehicle Acquisition o Confirm Authority (47 O.S. §156) o Owning now does not mean authority o 10,000 pounds and more (47 O.S. §156.3) o Submit Vehicle Acquisition Request (DCAM-Form-FM-016) for approval o Submit Vehicle Inventory Data Sheet (DCAM-Form-FM-017) for inventory o Reasons and Conditions o Project Revenues and Expenditures o Conduct Mission Analysis; Consider Vehicle Downsizing o Pursue Alternative Fuel Replacement Targets (State and Federal) o Sources o Buying new through SW035 and SW035C, Mandatory (M) o Buying new outside SW035 o Buying used from Federal or State Surplus, or state agencies 4

2.Vehicle Maintenance (Service and Parts) o Servicing in own garage o Servicing in Fleet Management o Servicing through SW767, non-Mandatory (nM) o Getting parts through SW307 (nM) and tires through SW024 (M) o Servicing and getting parts outside OK contracts and Fleet Management 5 Fleet Owning Agencies (2/6)

3.Fueling Vehicles and Paying for Fleet Services o Fleet Card, SW101 (M) o Remembering about Sales Tax Exemption o Using Level 3 sites for Data and Federal Fuel Tax Exemption o Requires PIN o FMD customers only get PIN through FMD o Agencies authorized to own get PIN from the vendor and notify FMD 6 Fleet Owning Agencies (3/6)

4.Vehicle Disposal o Disposal conditions (74 O.S. §78b) o 2 years or older o 60,000 miles or more o Repairs needed exceed $2,500 o DCAM-Form-SS-001V must be submitted to Fleet first o Selling vehicles through State Surplus o Selling vehicle through own auctions or sale events 7 Fleet Owning Agencies (4/6)

5.Vehicle Disposal (cont.) o Oklahoma: o Fleet Management: 120,000 miles o Dept. of Transportation: 175,000 o Dept. of Public Safety: 115, ,000 o Other States o Utah:105,000 miles (min. 2 years, max. 12 years) o Oregon:115,000 (3 years)-140,000 (8 years) o Georgia:135,000 miles o Illinois:150,000 miles 8 Fleet Owning Agencies (5/6)

6.Mandatory Reporting o Federal o Energy Policy Act (EPAct) – Acquiring Alternative Fuel Vehicles (CNG, LPG, E-85/FFV) o EIA-886, Annual Survey of Alternative Fuel Vehicles o State of Oklahoma o Form 016 – Vehicle Acquisition Request o Form 017 – Fleet Inventory Report o Monthly reporting o MMR – leasing customers o MFR – owning agencies o Form 001V – Surplus Vehicle Transfers 9 Fleet Owning Agencies (6/6)

State Rental: o Fleet Management: fixed rate plus mileage after 80 miles NEW: online reservations: o OU: fixed rate plus fuel o OSU: fixed rate plus mileage Vendor Rental: o Vendors on SW771 (nM): fixed rate plus fuel (insurance incl.) o Vendors outside on SW771: fixed rate plus fuel (insurance n-incl.) o Note: no 6 percent tax on state rentals from vendors 10 Vehicle Rental

Mileage Reimbursement (74 O.S. §85.45k) o Current IRS rate $0.575 (74 O.S. §500.2) o Fleet Management Calculator/Trip Optimizer (74 O.S. §85.45l) o Over 100 miles per day o Any way appropriated agencies o Smallest vehicle for travel needed 11 Mileage Reimbursement

Lease Rates: - Include: maintenance, road assistance, insurance, loaner (OKC) - Do not include: fuel, pike and deductible - Rate based on utilization - Utilization monitored continuously - Pricing established at beginning of new lease - Pricing may be revised at each Fiscal Year 12 Leasing Vehicles

13 1.Reporting (74 O.S. §110.3.) o Vehicle Monthly Meter and Cost o – Leasing agencies monthly reporting o – Owning agencies monthly reporting o Acquisition and Sale o Inventory 2.Utilization o Minimum 12,000 miles per year/1,000 miles per month (74 O.S. §78. C. 8.) 3.Vehicle Marking o Conspicuous lettering stating (47 O.S. §151) o “State of Oklahoma” o the name of the department or institution; o unit # highly recommended o Confidential vehicles, exemptions (74 O.S. §78. D.5.) o On an agency letterhead to fleet manager o Employee name and unit # o Reason clearly stated and must relate to employee job mission Statutory Requirements (1/4)

14 4.Work from Home; Driving Vehicle Home o Agency Authorization for Commuting in State Vehicle, (022) o 47 O.S. §156.1 o Only essential employees approved by governor (and others) in the performance of their official duties o Employee who regularly receives after hours emergency calls (75 miles limit round trip, and authorization to be reviewed every 60 days) o Listed law enforcement and some other agencies o 2007 OK AG 18 o 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. Statutory Requirements (2/4)

15 5.Insurance o Liability [See 51 O.S. §154(A)] o Provided by agency standard liability coverage through Risk Management: o 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; o 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).... o One Million Dollars ($1,000,000) for any number of claims arising out of a single occurrence or accident. o Agencies with state employees driving vehicles must also acquire Motor Vehicle Liability through Risk Management. o Applicability o On duty either in state or personal vehicle o Covers state employees only (business visitors covered by their own workers’ comp) o Vehicle Physical Damage (optionally through Risk Management): o deductible $2,500 for vehicles up to $50,000; $5,000 over $50,000 o Note: Does not apply to personal vehicle use on state business Statutory Requirements (3/4)

16 5.Insurance – cont. o Authorized Users/Drivers o Risk Management’s Auto Liability Program provides insurance coverage to state employees while in the Scope of Employment only; o It does not cover any individual failing to meet the definition of an employee under Oklahoma Governmental Tort Claims Act. [Refer to the following: 51 O.S. 151 et seq.; 51 O.S. §152 (7); 51 O.S. §152 (12); 51 O.S (A) and (B); 51 O.S. 153 (A) and (B); 51 O.S. §155, specifically exemption 18 related to contractors*.] * Galt Foundation temporary employees may drive Oklahoma State vehicles, provided the temporary employee is contracted through SW800/PS# 1862 with Galt Foundation. The temporary employee will not be covered under Oklahoma Risk Management insurance. The temporary employee driver will need to maintain a current copy of Galt Foundation’s insurance provided a current MVR (Motor Vehicle Report) be supplied to Galt Foundation at the client’s expense. Statutory Requirements (4/4)

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

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

19 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: 82 Initiatives

20 Office of Management and Enterprise Services Capital Assets Management Fleet Management 317 N.E. 31st St., Ste. A Oklahoma City, OK Phone: Fax: Questions