TL;DR (generated · confidence: high)

Package 23,601 proposes eliminating 139 low-mileage vehicles (3.8% of fleet) across 10 City bureaus to achieve $1.66 million in cost reductions. Vehicles averaged under 83 miles per month over three fiscal years. Savings include $1.034 million in deferred replacement costs, $566,000 in maintenance/repair reductions, and $60,000 in fuel savings. No FTE impacts expected; potential service improvements as staff focus on remaining fleet.

Key points (each cites a PDF page):

Elimination of 139 vehicle units across 10 City bureaus, representing 3.8% of total fleet. (p. 456)
Total cost reduction to bureaus of $1.66 million in interagency revenue. (p. 456)
Low-mileage threshold: vehicles traveled less than 83 miles/month (1,000 miles/year) over FY 2022-23, 2023-24, and FY24-25 FYTD. (p. 456)
Replacement cost savings: $1.034 million reduction in CityFleet's capital budgets. (p. 456)
Maintenance and repair savings: $566,000 reduction in external materials and services. (p. 456)
Fuel rate reduction: $60,000 in savings for vended services and supplies. (p. 456)
No FTE impacts; 3.8% fleet reduction insufficient to affect CityFleet staffing requirements. (p. 456)
CityFleet must validate mileage and assess operational impacts with each of 10 impacted bureaus before implementation. (p. 457)
Potential service improvement: elimination of low-utilized vehicles frees staff preventive maintenance capacity to improve KPIs for remaining fleet. (p. 457)

💰 $1.66 million · $1,654,400 · $1.034 million · $566,000 · $60,000 · 📋 City Operations – BFF- Fleet · Facilities Services · CityFleet · 🏛️ Bureau of Fleet & Facilities · City of Portland (10 impacted bureaus not individually named)

23,601

Source: PDF pp. 456-457 · raw: 456 · 457

Breadcrumb: 3 city ops › City-Ops-DPs_0 › Package Details › 23,601

23,601 - City Operations – BFF- Fleet – Eliminate low mileage vehicles assigned to bureaus - 5% cut Service Area City Operations DCA Sara Morrissey Bureau Name Bureau of Fleet & Facilities Director Sara Morrissey Funding Type Name Reduction Status: Recommended Package Desc Expense Recommended Total As both Facilities Services and CityFleet have been in a “rebuilding” mode for several years to Contingency ($1,654,400) restore basic legal and regulatory compliance and safety functions, and as neither organization has ($1,654,400) any non-essential costs that can be cut without compromising the functional requirements that these divisions have just recently restored, this cut concept focuses on reducing bureau demand for BFF Revenue Recommended Total services that appears to be non-value-driven, as opposed to reducing elements of BFF’s operating models. Interagency Revenue ($1,654,400) ($1,654,400) Specifically, BFF proposes to center its cuts on what appears to be underutilized CityFleet inventory, to achieve a total cost reduction to bureaus of $1.66 million. Although the specific units proposed for elimination will need further vetting with the bureaus to which the units are assigned, it appears this reduction can be achieved through the elimination of 139 vehicle units on the part of 10 different City bureaus (3.8% of the City’s total fleet). CityFleet identified these units as potentially underutilized as these units appear to have traveled on average less than 83 miles/month (or 1,000 miles/year) in FY 2022-23, FY 2023-24, and FY24-25 FYTD. When bureaus turn in vehicles they will see a reduction in costs in three areas. First, they are no longer charged the fixed replacement rate for the vehicle (note that all prior collections for the vehicle would remain in the bureau’s Fleet replacement account and be available for funding other replacements where there may be a funding shortfall). Second, they are no longer charged the fixed maintenance and repair rate for the vehicle. Third, they are no longer charged the fixed fuel rate for the vehicle. If 139 vehicles were turned in it would result in a revenue reduction of $1.66 million for Fleet. The amount for replacement is $1.034 Million and would be a reduction in Fleet’s capital budgets in the years when these vehicles would be replaced. The maintenance and repair savings amount to $566,000 and would be a reduction in external materials and services for vended services, parts, and supplies. Note that the 3.8% reduction in the size of the fleet is not significant enough to impact CityFleet’s FTE requirements; however, eliminating mandatory time-based preventive maintenance from CityFleet’s workload for these low-utilization vehicles could result in a small improvement to service levels for the rest of the fleet. Similarly, the amount for the fuel rate is $60,000 and would be a reduction in external materials and services for vended services and supplies. CityFleet greatly appreciates the City allowing proposals that allow us to achieve cost cuts by eliminating potential inefficiencies, as opposed to fundamental elements of internal service fund operating models (e.g., staffing). We are also excited to explore this and several other longstanding ideas for citywide efficiency and cost savings more fully as Charter Reform takes effect.

Service Impacts As noted, BFF proposes to eliminate 139 vehicle units across 10 City bureaus that appear (based on data from FleetFocus) to drive less than 1,000 miles per year (83 miles per month). Should this cut concept be supported, and prior to making an actual cut, CityFleet will need to meet with each impacted bureau to validate mileage, assess the operating impact that such a cut will have on bureau operations, and strategize on potentially more cost-effective alternatives to meeting bureau operational needs should the bureau and CityFleet agree that a cut is advisable, but a fleet solution is still needed (e.g., ad hoc rentals to meet infrequent needs). In short, we will need to work with each bureau to discuss CityFleet’s assumptions about the impacts of these inventory cuts on bureau operations and outcomes, and various alternatives to meeting bureau operational needs given the low use of the units flagged. Equity Impacts Eliminating inefficiency does not create an equity impact. Rather, it has the potential to improve equity outcomes because it could take off the table the need to cut fundamental elements of BFF’s operating models that the organization relies on to conduct its work. In addition, the proposed cuts could IMPROVE service levels for all bureaus as time-based preventive maintenance still must be performed on a vehicle, whether or not it has been utilized. Eliminating low-utilized vehicles will eliminate this work, creating more effective capacity for CityFleet staff to focus on the rest of the vehicle inventory, potentially improving KPIs for the bureaus (e.g., turnaround time).

Parent: Package Details · PDF: pp. 456-457