Title
Fleet Replacement Assessment Overview Discussion
Staffreport
COUNCIL PRIORITY
* Sustainability & Resiliency
* Fiscal Sustainability and Transparency
SUMMARY
In 2024, San Leandro contracted with Baker Tilly US, LLP to complete an assessment of the City's Equipment Replacement and Maintenance Fund. This report provides an overview of the assessment.
RECOMMENDATIONS
This report is for information purposes only.
BACKGROUND
San Leandro maintains a vehicle and equipment fleet over around 200 assets. Fleet assets are administered in two departments: 1) the Police Department administers maintenance and replacement of PD vehicles in conjunction with third party vendor, Priority 1; and 2) the Public Works Department administers the maintenance and replacement of all other City vehicles. Finance assists both Departments with financial reporting and manages the City's Fleet Internal Service Fund which holds funds for all City fleet assets.
In 2024, the City contracted with Baker Tilly US, LLP (Baker Tilly) to complete an assessment of the City's Equipment Replacement and Maintenance Fund, an Internal Service Fund. The purpose of the fund is to plan for funding the maintenance and replacement of the City's fleet and other equipment. The Baker Tilly assessment focused on the financial management of the fund including both administration (the ways in which costs are estimated and allocated) and the appropriate level of reserve funding.
Baker Tilly worked with the Finance, Public Works, Recreation, and Police Departments to capture all necessary information to ensure a proper replacement schedule was available and that reasonable replacement cost estimates were being used. Baker Tilly had several suggestions to the City for proper administration of the fund. Internal management suggestions, such as inter-departmental communications suggestions and asset costing, are being reviewed and implemented as required. This report discusses results of the policy...
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