Fleet life cycle / vehicle replacement policy

Fleet Life Cycle / Optimal Vehicle Replacement Policy

Purpose

This policy will outline the criteria for effective vehicle replacement. All factors of a vehicles mission,

purpose, age, mileage and cost of ownership will be assessed to create a benchmark for relinquishment.

This policy must be firmly adhered to in order to reduce costs and ensure safe and reliable vehicles to

deliver city services.

General

Safety is not usually a factor of a vehicles age and mileage, but dependability and reliability are. Several

things influence a vehicles life cycle.

• Service life is the amount of time a vehicle is capable of rendering service. Service life may be

quite lengthy if a vehicle receives adequate maintenance and worn components are replaced. There

is however a fatigue point for mechanical parts and structures that must be accounted for so as not

to affect safety.

• Technological life is the relative decline in productivity of a unit when compared to a newer model.

Technology advancements affect fuel usage and greenhouse gas emissions

• Economic life is the length of time that a vehicles cost is at a minimum. As the age and mileage

of a vehicle increase the maintenance and operating costs increase also.

Benchmarks

The following chart will form the basis for an economical and mechanical inspection to determine a

replacement cycle or schedule. This chart was developed using historical maintenance data compiled

from fleet management maintenance records. High cost vehicles such as specialized trucks or Fire

Apparatus may be retained for additional life as a reserve unit but must be evaluated annually.

Radio patrol cars 125,000 miles and or 5yrs (total life cycle)

Un-Marked Police 125,000 miles and or 8yrs.

Medic units 150,000 miles and or 5 yrs. (Front line)

Fire pumper 100,000 miles and or 12 yrs. (Front line)

Fire Ladder 100,000 miles and or 12 yrs. (Front line)

Compact sedan 125,000 miles and or 10yrs

SUV 125,000 miles and or 10 yrs

Pick-up truck 125,000 miles and or 10 yrs. (6 to 8 yrs. Snowfighting)

Cargo van 125,000 miles and or 10 yrs

Tri axle dump 150,000 miles and or 12yrs

Crew cab dump 150,000 miles and or 12yrs

Inlet Cleaner 20,000 hours and or 12 yrs.

Sewer Vac 20,000 hours and or 12 yrs.

Trash compactor 20,000 hours and or 8 yrs. (Front line)

Street sweeper 15,000 hours and or 10 yrs.

Wheel loader (salt) 15,000 hours and or 10 yrs.

Process

Vehicle fuel and maintenance data will be collected in OFMs asset management system (M5)*. All costs

including labor, parts, fuel and accidents will be recorded in order to capture lifetime vehicle costs. OFM

shop supervisors will identify vehicles that meet the benchmark criteria. OFM Assistant Fleet Managers

will review the list with the Shop Supervisor. Any vehicle deemed to be at or beyond its useful life must

have the vehicle status in M5changed from ‘Active’ to ‘Flagged for Disposal’ A ‘flagged for disposal’

list will be developed using the benchmarks of this policy. Highest replacement priority will be given to

any vehicle meeting the benchmark criteria and / or exceeding 80 % of purchase cost to repair.

Procedure

Beginning each Fiscal Year, a prioritized list will be developed using the guidelines of this policy. The

prioritized list will be shared with using departments to determine the correct replacement schedule as

well as correct vehicle type and total vehicle inventory*.

Where operationally possible alternatively fueled vehicles will replace conventionally fueled vehicles.

Alternative options include Compressed Natural Gas (CNG), Hybrid Electric Vehicles (HEV), Plug in

Hybrid Electric (PEHV) and all Electric Vehicles (EV).

Summary

This policy is to be used as guideline for cost effective vehicle replacement cycles. Other factors such

available funding or vehicle service level agreements* may influence replacements. Increases in public

health and safety measures requiring additional vehicles or equipment (New Needs) will also influence

vehicle replacement schedules. In these cases, a vehicle may need to be retained past its life cycle however

these vehicles must be relinquished at the first opportunity in order to reduce operating costs and allow

for on time delivery of city services.

********

Service Level Agreement (SLA). Pre-determined number of vehicles needed for a department to deliver city services.

Total Vehicle Inventory. Maximum number of vehicles assigned to a Department

Front Line Vehicle. Daily use, primary vehicle

Reserve Vehicle. Secondary use, spare when front line is un-available

M5. Asset Management software used to capture vehicle cost and maintenance data.

Flagged for Disposal. Reportable designation in M5 to denote replacement needed

Revised 1/1/19