Phoenix Public Works Support Services September 24, 2018

Support Services This is a great representation of the mission of Public Works Support Services We take care of the buildings and fleet apparatus needed for most departments to deliver public services. Our team consists of four groups FMD – 100 people FSD – 250 people Admin/FPO – 50 Introduce team

Phoenix City Hall 1994 Facilities Management When you think about the City of Phoenix, many people think of Phoenix City Hall, born in 1994. You might call it our corporate headquarters But we manage a full range of facilities – some newer and some much older like historic city hall which opened in 1929. Jointly developed and still used today by both the City and County. Calvin C. Goode building opened in 1964 giving us a building all to ourselves.

800 Buildings 10 million square feet 500 Square miles Facility Portfolio 800 Buildings 10 million square feet We have delivered facility management services to more than 800 buildings About 10 million square feet Even beyond Phoenix’ 500 square miles Supporting many different lines of business. Small team of 87 city employees Complimented by XXX contracted vendors – HVAC, electrical, roofing, custodial, doors/windows, etc. 500 Square miles 35 Lines of business

FM Challenges Deferred Maintenance Asset Management Mobile Technology BBL incident highlighted deferred maintenance and complacency derived from budget cuts through the recession Need centralized record with mobile tools so that field staff can access equipment history and record new information Like you, we are struggling to keep positions filled and to find skilled trades – especially for specialized areas such as Fire, Life Safety system technicians Staffing and Skilled Trades

Fleet Services 7300 12,000,000 $42 & 42M The City rides on fleet – City services could not be delivered without vehicles and equipment. Fire can’t save lives, Police can’t catch criminals, Water can’t fix blocked water lines. Even the City Clerk needs vehicles! We purchase and maintain more than 7300 vehicles and pieces of equipment for all City departments except two – Aviation and Transit. For Aviation we buy their vehicles but we don’t maintain them, For Transit we don’t buy or maintain their vehicles We spend $42M/year maintaining the city’s fleet and coincidently we drive about 42M miles/yr. The whole fleet is valued at about $550M $550M

Fleet Challenges Police vehicles should be replaced about every 5 years. These vehicles are used 24/7 – It’s really a patrol officer’s office. In their line of work, accidents are a regular occurrence. This actually presents some opportunity for us which Ill talk about in a minute.

Fleet Modernization Increased Capital Spending Electric Vehicles Heaving Duty Motor Pool Refurbished Vehicles Financing Alternatives Several measures are recommended to modernize the light duty fleet Grant Funding – The Police Dept. received grant funds – $2.4 million for FY 18 and another $2.4 million for FY 19 – this is in addition to our normal vehicle replacement budget and it helps. We’ve increase annual spending for vehicle replacements Adding electric vehicles – starting with the downtown motor pool. This will require new or refurbished charging stations programmed for overnight charging for load balancing. Staff is exploring options for leasing vehicles. A Request for Information has been issued to gather information about what the market has to offer the City. This solution could work well for Departments like Neighborhood Services where staff works in a smaller geographic area logging less miles per vehicle. 14% of general fund light duty fleet vehicles use less than 5000 miles per year. Of course, this would not be a recommendation for police pursuit vehicles that log higher miles and are more prone to accidents. Financing – Short term financing. A 5-year loan term would allow us to purchase four (4) times more vehicles in the first year to accelerate cost savings on maintenance and fuel costs. Instead of cash purchasing 100 vehicles for $3M we could finance 400 vehicles for $3M in loan payments. Longer Term Increased Capital Spending – The strategies above are a good start but will not completely eliminate the backlog of aged vehicles. Ultimately, we will need to increase annual spending for vehicle replacements to eliminate the backlog and achieve a modern fleet. We will continue to work with the Budget & Research and Finance Departments on an annual basis to develop and incorporate fleet modernization strategies.

Efficiency measures Parts Utilization Reallocation of Used Vehicles Improved and Expanded Motor pool In FY 18 staff began utilizing parts from damaged police vehicles for repairs…… Quality used vehicles, turned as a result of vehicle replacements, will be reassigned to City departments with older vehicles of a similar type. This ensures that the oldest vehicles are sent to auction. The Fleet Services Division has funding available to reimburse enterprise departments for these vehicles. A more modern fleet may create an opportunity to reduce the size of the fleet. Better reliability could decrease the number of spare vehicles needed. Better use of the motor pool could reduce the number of vehicles assigned to individual departments. Vehicle utilization is reviewed annually in accordance with A.R. 6.11

Aged Infrastructure

Aged Infrastructure 85 fuel sites Most installed in 1990’s 7 tanks being replaced now Need $1M/year for fuel infrastructure replacement

Opportunities Increased Budget for Maintenance Centralized Facility Management Asset Management/Mobile Work Order Increased Budget for Vehicle Replacements Expanded Parts Utilization Program Expanded and Enhance Motor Pool New Capital Development

Thank You!