1. 1 Fleet Sourcing Project Presented to the City Council By Wayne Corum, Director Equipment Services Department (ESD) November 17, 2009

2. 2 Purpose Outline the objectives of the Fleet Sourcing Project Review the Timeline of the Project Introduce the fleet consultant – Mercury Associates Mercury Associates will give a status report on the Competitiveness Study

3. 3 Fleet Sourcing Project Objectives  Conduct Competitiveness Study to identify potential fleet services for Managed Competition  Develop the RFP for Managed Competition of services  Select service provider and develop transition plan  Establish the fleet management organizational structure based on the services provided Process  Contract with Mercury Associates for Fleet Competitiveness Study  Council approved M&C C-23733 on August 18, 2009

4. 4 Fleet Sourcing Project Timeline DescriptionCompletion –Competitiveness StudyNovember 2009 –RFP ProcessMay 2010 –Contract Negotiation June 2010 –City Council ConsiderationJuly 2010 –Transition PlanAugust 2010 –Transition CompleteOctober 2010

5. 5 Mercury Associates  Independent consulting firm to organizations that operate fleets  Provides objective, unbiased advice and technical guidance  Mission  Improve the quality of fleet management practices,  Improve the quality of goods and services utilized in the management and operation of fleets  Improve the quality of information and professional development services available to the fleet industry  Hired to perform Competitiveness Study  Mercury Associates  Randy Owen – Senior Vice President

6. 6 FLEET PROGRAM COMPETITIVENESS ASSESSMENT FOR THE CITY OF Presented by Randy Owen Senior Vice President Mercury Associates

7. 7 OVERVIEW Assessment approach Key issues Project status Questions

8. 8 FLEET COST AND SERVICE PROFILES Low Cost High Quality High Cost High Quality Low Cost Low Quality High Cost Low Quality

9. 9 ATTRIBUTES OF A COMPETITIVE FLEET PROGRAM Provide market competitive services at a market competitive price Satisfied customers Engaged and productive staff Progressive and proactive Influential and respected by decision makers

10. 10 MYTHS OF FLEET MANAGEMENT Fleet management is not particularly important Fleet management is not particularly complicated

11. 11 Vehicle Assignment Vehicle Acquisition Vehicle Operation Vehicle Utilization Mechanic Supervision Registration Renewal Routing & Scheduling Vehicle Maintenance & Repair Vehicle Replacement Outsourcing Mileage Reimbursement Accident Management Parts Procurement & Supply Fuel Procurement & Supply Dispatching Mission & Authority Facility Management Motor Pool Management Vehicle Disposal Operator/Driver Training FLEET MANAGEMENT FUNCTIONS EFFECTIVE FLEET MANAGEMENT

12. 12 BUSINESS MANAGEMENT PROCESSES Planning Customer Relations Personnel Management Purchasing Budgets Information Systems Professional Certification Financial Management Management Analysis Benchmarking Interagency Agreements Annual Reports Charge-Back Rate Development Performance Reviews Focus Groups Training Billing & Collections Contracts Customer Surveys Accounting EFFECTIVE SERVICE DELIVERY

13. 13 CONSIDERATIONS Practices that impact ESD’S competitiveness Conditions that impact ESD’S competitiveness Avoidable vs. unavoidable costs

14. 14 PROJECT STATUS Field work complete Analytical work nearly complete Draft report by the end of the month

15. 15 QUESTIONS?