2014-02-25 Planning & Organisation Committee Meeting Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                25 FEBRUARY 2014


Property & Contracts

7.    UPDATE ON COUNCIL LEASED VEHICLE REVIEW

Author            Co-ordinator Procurement and Fleet, Phill Parkman
                  Organisational Services

Index             ECM / Fleet Plant and Equipment Management / Acquisition and Disposal

Attachments       Nil



PURPOSE

To provide an update regarding progress made to date with the review of the number of vehicle
leases transferred to Noosa Council, as part of the de-amalgamation process.

EXECUTIVE SUMMARY

As part of the de-amalgamation process 109 Sunshine Coast Regional Council (SCRC) leased
vehicles were transferred to Noosa Council according to an agreed methodology for the
allocation of plant and equipment agreed by the Transfer Committee. Prior to amalgamation
Noosa Council had a fleet of approximately 95 light vehicles (that excludes vehicles utilised by
water and sewerage and building certification operations in 2008 no longer provided).

Interim directors were requested to review the leased vehicles under their respective jurisdiction
to determine whether ongoing use of each vehicle was required to deliver services for the new
Council, and for those vehicles to be retained whether current commuter use arrangements in
place were appropriate.

The table below outlines the status of the review process and the number of vehicles identified
for lease termination, in addition to the annual cost savings that will be made. Currently a 28%
saving has been made in the leased vehicle fleet, as the interim directors and staff have been
closely looking at their operations and need for the vehicle numbers that have transferred.

 Vehicle Type      Original Number        Return       Retained      % Saving     Annual $ Saving

 Sedan             1                      0            1             0%           $-
 Wagons            36                     13           23            36%          $203,255
 Hatch             4                      1            3             25%          $14,060
 Utes 4x2          23                     9            14            39%          $107,753
 Utes 4x4          38                     7            31            18%          97,994
 Vans              6                      0            6             0%           $-
 Truck             1                      0            1             0%           $-
 Total             109                    30           79            28%          $412,009

Once the organisation structure is finalised and service levels are confirmed a further review of
fleet vehicles will be undertaken, particularly in relation to the type of vehicles required to deliver
services to ensure costs are minimised. It is also expected that the provision of vehicles as part
of employment packages will also be reviewed and rationalised where possible.




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