2015-11-10 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                             10 NOVEMBER 2015


Year to date fuel costs of $117k equates to 104,076 litres or an average $1.19 per litre. Council
utilises the state government contract fuel arrangement and receives a discount at the pump
compared to retail rates.

Plant and Fleet Replacement Program

A 10 year capital replacement program has been developed for Council’s fleet and plant following
a review undertaken in 2014. The review included condition assessments being undertaken for
all plant and vehicles to develop a forward replacement program and ensure risks associated
with safety and cost was mitigated. Ongoing condition assessments are now being undertaken
by the Manager and Maintenance Supervisor, with the forward replacement program amended
as necessary.

The 2015/16 capital budget included $1.85 million for plant and vehicle replacement, with $450k
of unspent funds carried over from 2014/15 to supplement the vehicle replacement program.

As at the end of September 2015, $326k of the program has been expended. Current fleet
replacement activities include the replacement of two backhoes with evaluations currently being
undertaken for quotes received under the Localbuy arrangement. Further significant purchases
will occur with four Council trucks to be replaced in the new year as well as the progressive
replacement of leased vehicles.

Plant and Fleet Utilisation

The fleet team is currently collecting utilisation data for each piece of plant via monthly odometer
records. Utilisation is a useful tool to assess if vehicles are achieving expected usage levels, by
comparing usage (km or hours) to an expected annual industry benchmark for each class of fleet
item. Utilisation variances (particularly underutilisation) to the benchmark can be analysed to
determine if they are appropriate based on the specific plant item or whether the original
investment decision was warranted.

Ongoing utilisation assessment is being undertaken to determine if individual fleet items are
necessary as part of Council’s operations or other forms of procurement may be more
appropriate. Plant and vehicle utilisation is now being discussed at the Fleet Advisory Team
meeting when replacement decisions are required.

Systems and Processes

The fleet team has been progressing the development of the fleet system in Technology One to
automate a number of activities including procurement and maintenance scheduling.
Maintenance scheduling is still being investigated, but in the meantime workarounds are being
utilised to manage the fleet maintenance program. The next stage of system development will
involve improving the reporting capability to allow more in-depth analysis of performance.

Emerging Issues

Moving forward the fleet team will be keeping abreast of changes in the industry and the potential
impact on Council, in particular the changes surrounding alternative energy.

Previous Council Consideration

Nil

Finance & Risk

Nil

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