Things Every CFO & CPO Should Know About Managing Fleet

Managing Fleet – A Juggling Act Managing Your Fleet (& Drivers) Can Feel Like Herding Cats.

Introduction 1.Assessment (Big Picture) 2.Applicable Contracts and Processes 3.Trip Calculator/Optimizer 4.Fleet Management Mission 5.Fleet Management Services 6.Driver Behavior 7.Statewide Trends & Initiatives

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

Fleet Owning Agencies (1/4) 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 (016) for approval o Submit Vehicle Inventory Data Sheet (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 o Buying used from a dealer

Fleet Owning Agencies (2/4) 2.Vehicle Maintenance (Service and Parts) o Servicing in the own garage o Servicing in Fleet Management o Servicing through SW767, non-Mandatory (nM) o Getting parts through SW307 (nM), & tires through SW024 (M) o Servicing and getting parts outside OK contracts and Fleet Management

Fleet Owning Agencies (3/4) 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

Fleet Owning Agencies (4/4) 4.Other Vehicle Contracts o AVL System Management & Road Assistance SW799 (M) o Vehicle Alternative Fuel Conversion SW809 (M) 5. 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 Selling vehicles through Property Distribution (State Surplus) o Selling vehicle through own auctions or sale events

Vehicle Rental State Rental : o Fleet Management: fixed rate plus mileage after 80 miles 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% tax on state rentals from vendors

Mileage Reimbursement Mileage Reimbursement (74 O.S. §85.45k) o Current IRS rate $0.565 (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

OMES-DCAM Fleet Management Vision o The Fleet Management Division is a relevant, value-added function that enables state agencies to perform their core and adjunct missions providing superior fleet solutions. Mission o Provide economical motor vehicle services to State agencies including policy oversight, leasing, maintenance management, reporting, and educating, training and promoting alternative fuel usage in both the public and private sectors. Values o Service Fulfill transportation needs of agencies o QualityProvide reliable fleet solutions o IntegrityAccount for transportation assets of the State

Fleet Management Core Business Chart

Meet Fleet Team

Leasing Vehicles Lease Rates: o Rate includes: maintenance, road assistance, insurance, loaner (OKC) o Rate based on standard algorithm of utilization o Pricing established at beginning of new lease o Pricing may be revised at beginning of each Fiscal Year o Utilization monitored continuously Lease Benefits: o Funds Directed to Other Critical Budgetary Requirements o Lease Rate Savings vs. Mileage Reimbursement o No Capital outlay to an agency o Time Directed to Other Critical Agency Mission o Fleet Maintenance o Driver Behavior o Risk Mitigation: FMD vs. Personal Vehicles o FMD Vehicles: Fully Insured o Personal Vehicles: State Does Not Provide Damage Coverage

Statutory Requirements (1/2) 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 relate to employee job mission

Statutory Requirements (2/2) 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 agency 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.

Fleet Processes 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/QMR) (L002) o Vehicle Sharing - Creating Reservations (L003) Universal o CNG Vehicle Self-Service Fueling (F002) Owning Agencies o Owning Agencies Vehicle Management (V001)

Driver Behavior 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 Must be taken within 6 months from the caused accident (OAC 580: (3))

Initiatives CNG o SW035C o NASPO MOU Legislation o Fleet Study o Trend toward transparency (2012 HB2647) Fleet System (M5) Expansion o Owning Agencies o Leasing Agencies

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