2015-06-23 Planning & Organisation Committee Meeting Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                    23 JUNE 2015


Council still leases sixty five (65) passenger and light commercial vehicles with leases due to
expire in 2015/16 and 2016/17. These remaining vehicle leases were transferred to Council
as part of de-amalgamation. Lease versus buy analysis outcomes show that leased vehicles
should be purchased on replacement when the existing leases expire. For the 2015/16 year
approximately 35 leases will expire and will be replaced with purchased vehicles.
Operating Model
The fleet and procurement branch currently consists of 5 staff including the manager,
procurement advisor, maintenance supervisor and 2 fleet officers. The focus of the fleet staff
is now on co-ordination and logistics regarding the fleet pool rather than actually undertaking
physical maintenance activities that previously occurred under Sunshine Coast Council. This
new operating model (recommended following the fleet review) allows better management of
maintenance and replacement activities and will also allow collation and analysis of
information for better decision making.
Budget and Year to Date Performance
As at the end of May 2015 fleet expenditure has achieved 88% of full year budget compared
to the year to date benchmark of 92%. Costs are recovered via the charging of plant to other
areas of Council via an internal charging process to ensure costs are appropriately captured
in operating and capital programs.

 Description                                   Value
                                              ($’000)
 May YTD Actual Expenditure                   $2,354
 Annual Budget Expenditure                    $2,682
 Variance                                       $328
 % of Budget Spent                               88%
Costs, such as lease costs and fuel expenditure are consistent throughout the year for
passenger and light commercial vehicles. Other costs, such as vehicle maintenance and tyre
replacement, occur sporadically or are purchased in bulk throughout the year.
The expenditure budget lines shown in the graph below contribute to 84% of the overall fleet
expense budget. The graph shows that maintenance costs are tracking above budget and
are being offset by positive variances in lease, fuel and tyre costs. The over expenditure in
maintenance is a result of the condition of plant and vehicles transferred which will be
addressed in time as replacement of older items occurs.



Corporate Overhead Charges

     Leases - Motor Vehicles

          Depreciation Fleet

         Fleet - Maintenance

           Fleet - Fuel Costs

            Materials - Tyres

                                $0        $200        $400   $600        $800
       Actual YTD Spend              Current Budget                 ($'000)


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