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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 16, 2016 <br /> Action Agenda <br /> Item No. 2 <br /> SUBJECT: Vehicle Replacement Schedule for FY 2016-17 <br /> DEPARTMENT: County Manager, Finance and <br /> Administrative Services, and <br /> Asset Management Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. Vehicle Replacement Schedule Bonnie Hammersley, (919) 245-2300 <br /> Travis Myren, (919) 245-2308 <br /> Gary Donaldson, (919) 245-2453 <br /> Paul Laughton, (919) 245-2152 <br /> Jeff Thompson, (919) 245-2658 <br /> PURPOSE: To review and discuss the recommended Vehicle Replacement Schedule for <br /> FY2016-17. <br /> BACKGROUND: In FY 2012-13, the Commissioner Approved Budget established a second <br /> Internal Service Fund, for County vehicle purchases. Internal Service Funds are an accounting <br /> device used to accumulate and allocate costs internally among the functions of the County. <br /> Historically, the County has used an internal service fund to account for one activity - its <br /> employee dental insurance program. With the creation of this Vehicle Replacement Fund, <br /> vehicles purchased occur through this fund instead of the departments' operating budgets. The <br /> change centralizes vehicle purchases, which increases the effectiveness of vehicle performance <br /> and cost monitoring. <br /> The current internal services fund is still being subsidized by the general fund. In the spring and <br /> and summer of 2016, staff will be working with a recognized fleet services consulting firm to fully <br /> optimize the internal services fund model for Orange County. This optimization will influence <br /> recommendations for the internal services fund starting in FY 17-18. <br /> Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance <br /> costs, fuel efficiency, and departmental mission need. The average age and accumulated <br /> mileage of the recommended replacements are 12 years and 161,754 miles, respectively. The <br /> vehicle replacement process is a dynamic process that unfolds over the course of a year. <br /> During the replacement cycle vehicles originally listed for replacement may ultimately not be <br /> selected for replacement as other fleet vehicles become a higher priority for replacement. <br /> The FY2016-17 recommendation involves public safety vehicles only in anticipation of the <br /> significant structural optimization expected within the Fleet Internal Services Fund to be <br /> recommended for FY2017-18 and beyond. <br />