2016-03-01 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                   1 MARCH 2016


Council still leases 41 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
32 leases were due to be replaced with purchased vehicles (unless an economic benefit is
otherwise presented – i.e. renegotiation of the extension to the lease to the favour of Council). To
date approximately 20 vehicles are scheduled to be replaced over the coming few months.

Operating Model

The Fleet and Procurement branch currently consists of 5 staff including the Manager,
Procurement & Fleet, Procurement Advisor, Maintenance Supervisor and 2 x Fleet Officers. The
focus of the Fleet Management staff is now on co-ordination and logistics regarding the fleet
pool. 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 December 2015 fleet operating expenditure has achieved 46% of full year
budget compared to the year to date benchmark of 50%. 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)
 Dec YTD Actual Expenditure           $1,207
 YTD Budget Expenditure               $1,355
 Variance (underspent)                $148
 % of Budget Spent                    46%

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 is actioned on a
scheduled basis where possible with reactive maintenance undertaken as required.

The expenditure budget lines shown in the graph below contribute to 81% of the overall fleet
operating budget. The graph shows that maintenance costs are tracking slightly above budget
and are being offset by positive variances in lease, fuel and tyre costs (with lease costs reducing
as vehicles are being replaced). The over expenditure in maintenance is a result of the condition
of plant and vehicles transferred to Noosa which will be addressed in time as the replacement of
the older plant items occurs.

Tyre costs are running under budget due to the improved monitoring and competitive
procurement of replacements.




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