HomeMy Public PortalAboutResolution No. 515-19 12-09-2019RESOLUTION 515-19
A RESOLUTION OF THE RICHLAND HILLS CITY
COUNCIL FOR THE PURPOSE ADOPTING VEHICLE
REPLACEMENT GUIDELINES FOR PUBLIC SAFETY
PATROL AND PUBLIC WORKS VEHICLES
WHEREAS, The City Council of Richland Hills desires to establish guidelines for
replacement for Police Patrol Vehicles and Public Works Vehicles; and
WHEREAS, The City Council fords that regular and planned replacement lowers the overall
cost of ownership of the vehicles; and
WHEREAS, these guidelines should be reviewed annually during the budget process;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF RICHLAND HILLS
MAYOR AND CITY COUNCIL that the City Council formally adopts the attached guidelines for
vehicle replacement, as shown in Exhibit A, which is incorporated as part of this resolution.
Passed and approved this 9~' day December, 2019
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' Mayor Edward Lopez ~
ATTEST:
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Cathy Bo ity Secretary
Approved as to Form:
Betsy Elam,
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EXHIBIT A
VEHICLE REPLACEMENT GUIDELINES
Purpose
The purpose of this policy is to establish guidelines on funding and maintaining Public
Safety Patrol Vehicle and Equipment Replacement Fund (PS VERF) and Public Works
Vehicle and Equipment Replacement Fund (PW VERF). This will ensure that vehicles
and equipment are funded and replaced according to their anticipated lifecycle, reduce
maintenance costs and eliminate reliance on the operating budget and large outlays for
vehicle and equipment purchases.
Objective
The objectives of this policy are as follows:
1. Provide a mechanism in which funding for vehicle and equipment replacements
is available, in advance of the need, through the establishment of the PS VERF
and PW VERF
2. Provide for the timely acquisition and disposal of vehicles, therefore maximizing
the dollar resources available for meeting the fleet needs.
General Procedures
1. A vehicle replacement schedule will be established with anticipated replacement
schedule and cost for each of the next five years.
2. Proceeds received from the resale of any vehicle removed from the fleet will be
deposited back into the appropriate VERF to help offset future costs of
acquisition.
3. The funds will be used to replace existing fleet. It will not be used to add
additional fleet above and beyond the existing number of vehicles already in the
fleet at the time the fund is established. However, once a new vehicle is added
to the fleet, the fund will then expand to support the additional fleet.
4. Beginning in FY 2020-2021 budget year, vehicles will be purchased utilizing a
lease purchase. Vehicles and equipment will be financed and leased down to a
residual value, which will be determined based on the expected resale value of
the vehicle.
Replacement Plan Funding
The primary funding for all PS VERF and PW VERF vehicles shall be out of the Crime
Control Prevention District and the appropriate Utility Funds. Annual transfers to cover
the amortization of all vehicles to be replaced will be allocated through the annual
budget process from the appropriate funds.
Vehicle Replacement Criteria
Vehicle replacement criteria are determined by anticipated useful service life and/or
mileage. The City recognizes that are or mileage does not always determine reliability
or condition of a vehicle, the following guidelines should a followed based on the teype
of vehicle to be replaced:
1. Patrol Units: Five years or 90,000 miles
2. Public Works Fleet: Five years or 100,000 miles (excluding heavy duty
equipment).
The City may decide to retain a vehicle beyond the stated criteria after evaluation of
anticipated usage, repairs and operating costs.
The consideration of early replacement of a vehicle often arises when major
expenditures are necessary to restore it to a safe operating condition (e.g. major
component failure or incident damage). However, replacement prior to the normal
criteria for vehicles will result in an acceleration of the future replacement cost
amortization in order to cover the unfunded portion of the cost of replacement. Major
vehicle repairs should always be made, with two exceptions:
1. Major expenditures for repair should not be made when the cost of the repair
plus the vehicle salvage in unrepaired condition exceeds its wholesale value in
repaired condition.
2. Major deferrable expenditures should not be made when a vehicle is in its final
year of its retention cycle. During this period, the accelerated cost for early
replacement is small, and therefore the vehicle should be replaced rather than
repaired.
Policy Review
The City Manager and the Finance Director will review this policy in connection with the
annual budget process to ensure the City is adhering to the framework of these
guidelines and will make recommendations to revise the policy as needed.