Buildings and General ServicesGovernment Business ServicesFleet Management Services Annual Report FY 2018

Program Summary

Fleet Management Services (FMS) provides centralized management and control of the State’s vehicles, except for those exempt by statute or by Commissioner of Buildings & General Services.

Vehicle transportation is vital to accomplishing many of the tasks of state government, and vehicles serve a wide variety of needs–from occasional administrative travel to routine off-road use. FMS is committed to providing state agencies and departments with appropriate, well-maintained vehicles, and the necessary tools and resources, to allow them to meet their unique missions.

2

Authority

Administrative Bulletin 2.3 outlines State policy regarding the provisions and use of state-owned motor vehicles within the constraints of the law as reflected in 3 V.S.A. §217(a):

“No state department or agency, board, or commission, except the governor, thecommissioner of the department of buildings and general services, or the commissioners ofthe departments of fish and wildlife and public safety for use of employees who are swornlaw enforcement officers, may maintain or provide passenger vehicles subject to suchexceptions as may be made by the commissioner of buildings and general services incircumstances where there is documented evidence of necessity based upon therequirements or conditions of individual state programs.”

3

Mission

To provide agencies and departments with safe, economical vehicles for use on state business, and reduce the environmental impact of state travel.

4

Provide safe, economical vehicles to agencies and departments – Preventive maintenance compliance– Promptly address manufacturer recalls– Vehicles procured at lowest possible cost, and right-sized

• Formal justification process used to right-size vehicles and the overall fleet• Vehicle procurement considers total cost of ownership, highest fuel economy, and lowest tailpipe

emissions – Educate and inform employee travel options

• Encourage use of trip calculator to determine lowest cost travel option• Annually inform agencies and departments of high mileage drivers and potential savings available• Identify under-utilized fleet vehicles and recommend reassignment or elimination

Reduce environmental impact of state travel – Vehicles procured with the lowest tailpipe emissions and highest fuel

economy which meets the agency/department’s operational needs– Provide plug-in hybrid electric and all-electric vehicles when feasible– Right-size fleet vehicles to match travel and operational needs– Inform agencies and departments of excessive idling when telematics data is

available

Goals

5

Program Revenues/ExpensesThe program operates as an Internal Service Fund. The objective to generate sufficient revenue to cover operating expenses, while providing vehicles at the lowest rate possible. Fleet lease rates were lowered at the onset of FY 2016 to adjust the program fund balance, and pass savings back to departments.

FY2014 FY2015 FY2016 FY2017 FY2018Operating Revenue $5,355,022 $5,423,635 $4,463,300 $4,508,577 $4,955,861Operating Expenses $4,976,637 $5,237,456 $5,009,765 $5,466,420 $5,820,715

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

6

Monthly Rate ComparisonFleet Rates vs. State Contract Rental Rates

Monthly State Rental

ContractRate

MonthlyFleet

Vehicle LeaseRate

Cost Savings

% Saved

Intermediate Sedan $664 $459 $205 31%Hybrid Sedan $947 $463 $484 51%Intermediate 4WD SUV $1,095 $495 $600 55%1/2 Ton 4WD Truck $1,061 $527 $534 50%

Average for Vehicle Classes $942 $486 $456 48%

Average Monthly Fleet Rate Savings compared to Average Monthly Contracted Rates using CY 2019 rates is 48% savings.

7

Assigned VehiclesThe program provides assigned vehicles to agencies and departments for their exclusive use when justified. This chart reflects the total number of vehicles assigned to each agency and department at the end of FY 2018.

113

97 97

63

52 50 47

30

15 15

8 6 6 5 5 4 4 4 4 4 3 2 2 2 2 1 1

AOT

Corr

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DCF

BGS

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Enfo

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642 Lease Vehicles

27 Departments

8

Assigned Vehicle FluctuationsFleet assignments continually fluctuate based on need as justified by agencies and departments. This slide reflects the 5-year fluctuation by comparing the total fleet vehicles assigned to each agency and department from FY 2013 to FY 2018.

-6

33

51

-2

1015

164

28 4 1 -1 0 0

2 -2 1 -22 2 0 1 -1 0 0 1 -1

0

20

40

60

80

100

120

Corr

ectio

ns

AOT

DCF

BGS

DEC

Agric

ultu

re

DAIL

FPR

Heal

th

Judi

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AG

DMH

ANR

Enfo

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Crim

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ACCD

Assi

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Veh

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s

9

FY13 to FY18 Net Change: 138 vehicles

Motor Pool UtilizationMotor pools are located at various state campuses throughout the state, and provide daily rental cars to all employees for state travel. Utilization percentages are based on the number of rental days the vehicles are in use compared to the total number of rental days the vehicles are available. The program aims to achieve 65% utilization at each motor pool location to meet rental demand, while generating sufficient revenue to cover operational costs.

The program is successful when the average cost per mile paid by departments is less than the federal mileage reimbursement rate. In FY 2018, the average cost per mile paid by departments to use motor pool was $0.08 less than the mileage reimbursement rate, saving the State approximately $71,825.

Average Cost per Mile: $0.46Total Motor Pool Miles Driven: 897,816Total Number of Vehicles: 53Total Rental Days for FY18: 8,148Combined Motor Pool Utilization – 70%

Montpelier – State St

Montpelier –Green Mtn Dr

Montpelier –Natl Life Dr

Waterbury Burlington –Cherry St

Burlington –Pearl St

Rutland Springfield

Utilization Percent 67% 62% 65% 63% 87% 57% 93% 48%

Miles Traveled 162,386 336,550 72,808 51,386 133,625 10,127 108,863 22,171

Rental Bookings (Days) 1,435 2,786 584 466 1,226 105 1,367 179

Rental Availability (Days) 2,130 4,522 900 736 1,404 184 1,472 372

Number of Vehicles(end of FY18)

10 18 3 4 8 1 7 2

10

Assigned SedansSedans are the most fuel efficient and cost effective option for passenger travel. The program is working towards shifting some assigned sedans to pooled use which will make them available to all agencies and departments, reducing the fleet size and decreasing costs. This chart reflects assigned sedans by agency and department, which are potential candidates for pooled use. Home-based sedans are not accessible for pooled use.

36%

Hom

e Ba

sed

69%

Hom

e Ba

sed

44%

Hom

e-Ba

sed

100%

Hom

e Ba

sed

30%

Hom

e Ba

sed

83%

Hom

e Ba

sed

25%

Hom

e Ba

sed

100%

Hom

e Ba

sed

0

10

20

30

40

50

60

70

80

90

100

SEDANS (335) HOME-BASED (97)

11

Assigned Sedan LocationsSedans assigned to agencies and departments are most often stationed near State buildings, with the exception of those housed at an employee’s home. To improve fleet utilization, the program is working towards shifting assigned sedans to pooled use by making some fleet sedans available to all agencies and departments, with initial focus on areas with a high concentration of assigned sedans. This chart excludes home-based sedans and those used for transporting state wards or police training purposes.

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MONTPELIER (40)

NATIONAL LIFE CAMPUS (19)

RUTLAND (15)

WATERBURY (13)

BURLINGTON (9)

SPRINGFIELD (6)

BENNINGTON (6)

BERLIN (6)

WILLISTON (4)

ST JOHNSBURY (3)

BRATTLEBORO (3)WHITE RIVER (2)

ESSEX (2)SINGLE

VEHICLE LOCATIONS

(9)

Fleet CompositionThe program right-sizes vehicles by matching the expected use with the most economical, fuel-efficient, and lowest emissions vehicle possible. Administrative travel and passenger transport is best accomplished by partial- or zero-emission sedans, and larger vehicles reserved for bulky or heavy cargo transport, off-road travel, or other special needs.

218

91

19

53

165

236

103

21

48

173

288

108

22

50

185

326

101

51

21

169

384

89

49

21

191

402

72

46

24

180

0

50

100

150

200

250

300

350

400

450

FY 2013 (547)

FY 2014 (582)

FY 2015 (655)

FY 2016 (670)

FY 2017 (734)

FY 2018 (724)

FY18 – Inventory as of July 2, 2018includes 29 transitioning new/retired units 13

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Fuel Purchases (Gallons) 399,179 419,614 436,715 487,426 425,265 421,358Fleet Miles Driven* 8,248,200 8,442,960 8,878,453 10,001,602 9,917,476 9,150,420Avg Miles per Gallon 20.66 20.12 20.33 20.52 23.32 21.72

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

BGS Fleet Fuel Purchases by Fiscal Year

Fuel Purchases (Gallons) Fleet Miles Driven* Avg Miles per Gallon

Fuel PurchasesThe program supports the reduction of greenhouse gas emissions by assigning the lowest emission, most fuel efficient vehicle, which meets expected needs established by agencies and departments through a justification review. In addition to vehicle fuel economy, travel distance primarily drives fuel purchases. The program aims to increase the average miles traveled per fuel gallon purchased.

*Mileage data is collected from driver reports, which may contain inaccurate entries. Obvious outliers are removed, however mileage data is considered approximate.

14

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

ReimbursedMiles Driven

Fleet MilesDriven

Total MilesDriven

ReimbursedMiles Paid

Fleet VehiclePayments

Total Paid forFleet Use &Reimbursed

MilesFY 2013 9,532,836 8,248,200 17,781,036 $5,327,112 $4,980,950 $10,308,062FY 2014 8,979,161 8,442,960 17,422,121 $5,056,228 $5,355,022 $10,411,250FY 2015 7,238,704 8,878,453 16,117,157 $3,998,988 $5,423,635 $9,422,623FY 2016 5,995,580 10,001,602 15,997,182 $3,363,566 $4,463,300 $7,826,866FY 2017 6,156,950 9,917,476 16,074,426 $3,000,150 $4,467,706 $7,467,856FY 2018 4,533,921 9,150,420 13,684,341 $2,297,116 $4,722,473 $7,019,589

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Mile

s Tra

vele

d an

d Re

imbu

rsem

ent D

olla

rs P

aid

Fleet mileage data is collected from driver reports, which may contain inaccurate entries. Obvious outliers are removed, however mileage data is considered approximate.

Vehicles exempt from the Fleet program are not included in Fleet program reports.

Reimbursed Travel & Fleet UtilizationThe program’s mission is to provide fleet vehicles to agencies and departments when it will result in savings over the federal mileage reimbursement rate, or when their mission requires a fleet vehicle. Our goal is to reduce travel performed in personal vehicles at the full reimbursement rate, when using a fleet vehicle is more cost effective.

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High Mileage DriversAs a cost saving strategy, the program informs agencies and departments of their high mileage drivers based on expense data and fleet rates from the previous fiscal year, and recommends using the lowest cost option. An employee is considered a high mileage driver when their annual mileage reimbursements exceed the cost for their department to lease a fleet sedan. The current annual threshold is 11,000 miles, while in past years the threshold has been as much as 14,000 miles.

$1,0

54,1

66

$790

,919

$782

,877

$966

,414

$1,1

43,4

89

$560

,617

$378

,842

$679

,746

$469

,963

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY10 (115) FY11 (85) FY12 (88) FY13 (96) FY14 (128) FY15 (60) FY16 (35) FY17 (86) FY18 (56)

Cost of High Mileage Drivers FY 2010 - 2018

Fiscal Year (Number of Drivers)

16

Locations with Highest Mileage ReimbursementsThe program seeks to increase the use of fleet vehicles at these locations, by making cars available through a motor pool, when possible. This reimbursement data is only one consideration in selecting potential motor pool locations; available parking, partnerships with departments for dispatch, and other factors are considered.

$149

,361

$141

,618

$137

,199

$102

,870

$93,

215

$91,

696

$76,

231

$68,

407

$66,

488

$60,

975

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

FY 2018 Employee Full-Rate Mileage Reimbursements by Departing Location

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Fleet Disposal: Return of InvestmentThe program aims to achieve a 25% average return of investment for fleet vehicles*, which is the return on investment attained by “Elite” fleets, according to Government Fleet magazine.1 The program’s replacement planning and remarketing strategies are designed to maximize the return of investment.

Average resale return of original purchase amount

*Vehicles disposed by insurance settlement, have a salvage title, or were transferred to program after purchase, are excluded from ROI calculation.

1. Thi Doa, Author. “Elite Fleets Continue Tradition of Excellence.” Government Fleet. Published July 2013. http://www.government-fleet.com/article/story/2013/07/elite-fleets-continue-tradition-of-excellence.aspx.

25%

32% 32%36%

39% 39% 38%

34%37%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY180%

10%

20%

30%

40%

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Plug-In Electric Vehicles (Hybrid and Full-EV)The 2016 State Agency Energy Plan and Vermont Zero Emission Vehicle Action Plan establish a goal to convert 25% of light-duty state fleet vehicles to plug-in electric by 2025. Accordingly, Fleet Management Program must continue working with agency operations staff to identify opportunities to add more plug-in hybrids, and all-electric vehicles. Within the 2016 Agency Energy Implementation Plan, the Fleet Management Program has also committed to adding 5 plug-in electric vehicles each year, to help meet the goal to reduce greenhouse gas emissions.

Fleet Inventory

Avg VehiclePurchase

Cost

Avg Fuel Economy

Avg MilesDriven per

Vehicle

Avg Gallons of Gasoline

ConsumedPer Vehicle

EPA Gas Only Fuel EconomyAvg Estimate

EPA All-Electric Range on Full

Charge

Toyota Prius (plug-in hybrid 3 $28,764 43 MPG 9,684 215 gal 45 MPG 0-6 mi.

Ford C-Max Energi(plug-in hybrid electric)

16 $29,753 35 MPG 15,194 431 gal 36 MPG 0-19 mi.

Chevy Volt(plug-in hybrid electric)

6 $33,283 42 MPG 13,137 314 gal 40 MPG 36-49 mi.

Chevy Bolt EV1 $35,933 All Electric 8,496 0 gal 119 MPGe 238 mi.

Nissan Leaf EV1 $27,240 All Electric 2,936 0 gal 112 MPGe 151 mi.

FY 2018

19

Fleet Vehicle Accident LossesVehicle accident repairs are covered with program funds, with exception of a few special-use vehicles. The driver’s agency or department is only responsible to pay a minimal deductible per incident. FMS pursues and manages claims to recover damages caused by a negligent third party, through the State’s contracted vendor for third-party administrative services.

DCF (16)$30,627

22%

DOC (11)$20,343

15%

AGR (6)$19,087

14%

VTRANS (9)$13,968

10%

DEC (7)$12,876

9%

FPR (4)$5,341

4%

DAIL (2)$4,719

3%

BGS (5)$4,024

3%

HEALTH (4)$3,138

2%

OTHER DEPTS (10)$24,378

18%

DCF (16)

DOC (11)

AGR (6)

VTRANS (9)

DEC (7)

FPR (4)

DAIL (2)

BGS (5)

HEALTH (4)

OTHER DEPTS (10)

Summary:

Accident damages $138,501Damage recovery - $ 27,669Department deductibles - $ 28,472Net Cost to FMS $ 82,360

Total Accidents – 74

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Exempt Vehicle InventoryThe program is responsible to maintain the official inventory of all state-owned vehicles per Agency of Administration Bulletin 2.3. Agencies and departments granted exemption from the program are required to report annually on their state vehicles, with the exception of Agency of Transportation and Department of Public Safety, which are managed and reported independently.

731

456

15495

15 29 5 4 2 1 1 1 1 10

100200300400500600700800

14 Departments1,496 Exempt Vehicles

VTrans inventory as of 6/26/18DPS inventory as of 10/26/18Others inventory as of 2/4/19 21

0

500

1000

1500

2000

2500

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

State Fleet Size

State-Owned Vehicle InventoryBased on data collected from agencies and departments, the number of state-owned vehicles has steadily increased since FY 2011, some of which is likely attributable to efforts to shift state travel to lower cost fleet vehicles.

State-Owned Vehicle Inventory HistoryFMS

VehiclesExempt Vehicles

Total Vehicles

FY 2011 504 1193 1697

FY 2012 534 1208 1742

FY 2013 537 1218 1755

FY 2014 564 1247 1811

FY 2015 639 1250 1889

FY 2016 668 1250 1918

FY 2017 734 1240 1974

FY 2018 724 1496 2220

22