The issue of vehicle maintenance has long been a focus of attention in the Department. In recent years, because of reductions in apparatus replacement, the main object of vehicle maintenance was to keep apparatus "on the road". The EMS merger provided additional challenges for Department staff required to track and service apparatus in the Department. The Department also inherited an antiquated ambulance fleet from the Department of Public Health.

The E911 project required the installation of 800 MHz radios in all Department vehicles and Mobile Data Terminals (Lap top computers and mounting hardware) in all responding apparatus. The effort necessary to coordinate the modification and installation of this hardware, the subsequent removal of old hardware, and the fine tuning of this equipment to render it functional and reliable took over a year and enormous commitment of staff hours.

Day-to-day maintenance of apparatus has been further complicated by the motion of personnel required by the EMS merger, implementation of battalion based training, and the Department"s increased reliance on Like Work Like Pay (daily assignment at a higher rank or LWLP) officers. All these factors have contributed to less stable staffing of the drivers position, traditionally a critical component of effective apparatus maintenance.

The Department has also recognized the need for a comprehensive and strategic approach to fleet Replacement. A report issued by the Department in 1987 and frequently cited by the Auditor provides a pre-EMS merger blueprint for vehicle replacement. The Department"s 1987 plan was never fully executed due to external fiscal factors, and the Department has been falling behind in vehicle replacement every since. If this trend is not reversed, the Department will eventually require a large bond measure to augment and modernize its fleet.

· Recommendation of Auditor"s report

1.8.1 Prepare a written policy and set of procedures that cover management of the Department"s apparatus.

· Assessment of Department

The Department concurs with the recommendation of the audit.

The Department has already begun the development of polices and procedures that address overall management of the Department"s Apparatus. The Department has undertaken this development in conjunction with the PeopleSoft vehicle and equipment module (see Recommendation 1.8.3).

The expected Department-wide employment of the PeopleSoft vehicle module will allow for identification of appropriate policy, development of accountability measures, and the construction of a summary reporting structure for Department managers.

· Department Action plan and timeline

The Department anticipates that these policies and procedures will be in place January 2003

· Recommendation of Auditor"s report

1.8.2 Prepare a strategic and comprehensive Vehicle Maintenance and Replacement Plan, implement a related program for all Department vehicle and ensure Department-wide compliance with this plan. This plan should be updated annually to reflect inventory changes and budgetary actions.

· Assessment of Department

The Department concurs with the recommendation of the audit, and had already begun the development of this plan in the fall of 2001.

In August, the Department began the research and development of a strategic and comprehensive Vehicle Maintenance and Replacement Plan for all Department vehicles. This is designed to provide a roadmap for procurement, replacement, and disposal for the Department"s 300 plus vehicles. Given the varied and unique type of apparatus required for the Department to perform critical functions, a comprehensive plan of this nature will take months to develop. While the Department is currently about midway through this project, many fundamental elements of this plan have already become clear.

· The Department requires a reevaluation of useful life projections for all types of apparatus

· The Department will be required to construct unique and appropriate depreciation tables (either straight -line or accelerated) to determine appropriate disposal points for apparatus and in order to comply with Government Accounting Standards Board (GASB) Statement No. 34.

· The Department will need to work closely with the Purchaser"s Office to effectively procure and dispose of apparatus in the best interest of the Department

· The policy on passenger vehicle rotation needs to be revised. A new policy will be developed once the Vehicle Maintenance Database is implemented and meaningful data is captured and analyzed.

· The Department should look at a wide variety of options for its apparatus, including but not limited to:

· Exchanging City vehicles with other city Departments

· Developing "shared-use" plans with other City Departments for large capital cost items

· Narrow chassis fire engines

· Short modular or van type ambulances

· Smaller model SUVs for rescue captains and chief"s vehicles

· Hybrid and electric vehicles for fire prevention and administrative vehicles

· The Department will require an immediate infusion of capital to fund the purchase of apparatus to bring inventory up the required level to begin scheduled replacement.

· The Department is already in the process of developing a comprehensive data base for use by BOE and field personnel to monitor maintenance and usage of apparatus in the fleet.

· The Department policy of rotating heavy apparatus must be extended, in a thoughtful and appropriate fashion, to ambulances, sedans and passenger vehicles.

· As part of a new passenger vehicle policy, the Department must reassess the requirements for issue of passenger vehicles, and determine appropriate assignment of vehicles based on function and geography.

· The Department will re-evaluate the use of pool vehicles. This will allow for substantive discussion with the Purchaser"s office to effect procurement or disposal.

· Department Action plan and timeline

While the development of the Department"s Comprehensive Vehicle Maintenance Plan is currently in process, the complexity of the procurement process, the number of Department vehicles, and the development of integrated pieces of the proposal (integrated database, policy and procedures, and associated training) make this nine month project. The Department will work with a number of other City Departments in the development of this plan and subject this plan to an extensive review process. While the plan is in process, the Department intends to use the information for our next budget cycle (2002-03), and amend and create policies as issues are identified and resolved. We anticipate the completion of the Vehicle Replacement Plan by January 2002 in time for formal use in the preparation of the FY 2003-04 budget.

· Recommendation of Auditor"s report

1.8.3 Develop information tracking systems to monitor vehicle depreciation, value, usage hours, mileage costs, repairs and accidents and all other relevant information in a centralized database to ensure inventories are accurate and can be effectively used to manage the entire fleet as well as facilitate the Controller"s compliance with requirements of GASB Statement No. 34.

· Assessment of Department

The Department concurs with the recommendation of the audit.

The Department is in the process of development of the PeopleSoft vehicle and equipment module for use as the tracking system. The Department has productively used the PeopleSoft application for a little more than one calendar year. Scheduling / payroll and training were the first modules of PeopleSoft to be productively used. Because of the unique workflow and scheduling concerns of a 24 X 7 public safety agency, and the large volume of Department training, these modules required extensive modification, testing and training. PeopleSoft contains a module for vehicle and equipment tracking, and it has always been the intention of Support Services to deploy this module after completing deployment of the scheduling and training modules.

The Division has been readying the vehicle and equipment module in PeopleSoft for use since August of this year, and anticipates productive use to begin as early second quarter of calendar year 2002. This module as designed by PeopleSoft will allow for maintenance data to be entered in the field, vehicle assignment to be managed from a central location and real-time report generation on vehicle condition, location, and maintenance of any apparatus in the Department.

The database will initially be used to track vehicles and eventually capital assets as well. The database will function as the repository for vehicle and capital equipment information as recommended in the Auditor"s Report including, but not limited to, the following data elements:

· Original Purchase Cost

· Depreciation or Salvage Value

· Location

· Mileage or Hours

· Repairs

· Linked with Vehicle Accident Database as described in Section 1.9

In addition to the auditor"s recommendations the database will be track:

· Placed in Service Date

· Placed out of Service Date

· Vehicle Identification Number (VIN)

· Vehicle License Number

· Fuel and Oil Used

Department staff is currently developing the functionality, panels (i.e. GUI) and business rules necessary for successful use of this module. Policy issues are being identified for discussion as they are discovered. The Department also anticipates development of industry standard reports to address the summary and periodic reports required to maintain location, readiness, valuation, and depreciation of fleet assets. These reports can facilitate the Department"s compliance with GASB Statement No. 34. In the future, the PeopleSoft application could also be interfaced with a host of financial packages to facilitate budgeting and fiscal planning.

Vehicle Maintenance costs are currently tracked by the Central Shops using Mapcon which is a stand-alone vehicle maintenance database. The Bureau of Equipment (BOE) is able to access this database from a dial up connection and uses it to generate reports pertaining to scheduled and completed maintenance, as well as associated costs. There is no direct connection between the Department"s PeopleSoft database and the Mapcon application, and due to 911 network security concerns, it is unlikely that this situation will result in a truly unified database. The Department anticipated this issue while developing our Vehicle Tracking Database and have chosen to use the same identifier as the Central Shops. This will permit information from both databases to be linked through external tools providing a single format cost report.

The Department has recently begun the use of a Master Calendar and Lotus Notes e-mail systems. The Lotus Notes master calendar and e-mail has allowed the Department to post scheduled maintenance for apparatus and notify the company via e-mail of their appointment. Used in concert with PeopleSoft, the Department now has formidable tools to track apparatus and maintenance.

While PeopleSoft will address the Department"s database needs, there is the continuing issue of compliance of field personnel. A host of policies and procedures must be developed that ensure accurate tracking, reporting and, ultimately, the accountability of field personnel for routine vehicle maintenance.

One recent step is the development and implementation of a new daily vehicle operational check list for all responding apparatus. This checklist was developed by field personnel in conjunction with the Department"s Accident Review Committee, and is currently facilitating field compliance.

While these policies are the responsibility of the Department"s command staff, there are two elements that would ease compliance. First, the PeopleSoft application is being developed for field personnel to routinely and periodically input objective benchmarks of vehicle use. Hobb"s Meter Readings, fuel usage and odometer readings by the company officers can be used to track wear on front-line vehicles.

Secondly, the Department will evaluate the possibility of transitioning the position of Apparatus Operator (AO) into a promotable position rather than a daily premium pay position, and that these AO"s NOT be subject to daily detail. Historically, Department drivers took enormous pride and a degree of ownership in their apparatus. They would become familiar with the idiosyncrasies and performance of their apparatus. It was not difficult for regular drivers to notice that a unit was not performing properly, or was in need of maintenance or routine service. Since the Department currently pays a premium for AO"s, the modification of the position would require minimal expense and go some way toward assuring accountability of field personnel.

The projected cost for the transition of apparatus operator premium pay to the promoted position of "engineer" is approximately $68,000 per year. The cost anticipates using the same percentage factor for the new promotable classification as the current premium pay. Retirement benefit cost has not been projected.

· Department Action plan and timeline

The use of PeopleSoft vehicle module will begin in June or July of 2002. The interim period is required to further develop panels, test software, modify hardware at the BOE, and provide training and reference material for Department personnel. The Department must identify those areas that require policy modifications, then draft, approve and disseminate these new polices to Department personnel.

A summary of the Action Plan is as follows:

A. Apparatus and Capital Equipment Management Plan

1) Develop Written Policies and Procedures for Vehicles and Capital Assets:

· Inventory Management- including scheduled physical counts

· Utilization

· Maintenance

· Develop vehicle maintenance policy for field personnel

· Develop scheduled preventative maintenance policy

· maintenance needs currently identified by vehicle officer

· flexibility to work with outside vendors

· Warranty Claims Processes

· Vehicle Recalls

· Resolution of known equipment defects

· Additional Training for Vehicle Operators

· Maintenance Procedures

· Driving and Operation to decrease Accidents as described in Section 1.9

2) Develop an Updated Information Tracking System

· Track Vehicle and Capital Assets

· Use PeopleSoft

3) Database for Vehicle and Capital Asset information including:

· Original Purchase Cost

· Depreciation or Salvage Value

· Location

· Mileage or Hours

· Repairs

· Costs associated with Maintenance and Repairs

· Linked with Vehicle Accident Database as described in Section 1.9

4) Data Analysis

· Examine utilization patterns in order to:

· Develop passenger vehicles rotation policy

· Anticipate and justify replacement

· Examine whether scheduled preventative maintenance can lower costs

5) Database Reporting requirements

· Single format report that links the mixture of associated costs

· Comply with GASB 34 accounting reporting standards

· Comprehensive Accident Reports as described in Section 1.9

·Department Action plan and timeline

The Department anticipates completion of this project by January 2003.

· Recommendation of Auditor"s report

1.8.4 Develop a system to ensure that Department vehicles and apparatus receive the proper maintenance.

·Assessment of Department

The Department concurs with the recommendation of the audit.

The Department fully expects the PeopleSoft vehicle and equipment module to provide the core of the system that will allow managers to ensure compliance with maintenance polices.

·Department Action plan and timeline

The use of PeopleSoft vehicle module will begin in January of 2003.

· Recommendation of Auditor"s report

1.8.5 Rotate passenger vehicles to smooth out utilization rates

· Assessment of Department

The Department concurs with the recommendation of the audit.

Rotation of passenger vehicles will be included in the Department"s comprehensive vehicle maintenance plan.

· Department Action plan and timeline

The development of the Department"s Comprehensive Vehicle Maintenance Plan is currently in process and should be completed in six to nine months. The Department will work with a number of other City Departments in the development of this plan and subject this plan to an extensive review process. While the plan is in process the Department intends to use the information for our next budget cycle (2002-03), and amend and create policies as issues are identified and resolved. We anticipate the completion of the Vehicle Replacement Plan by January 2003 in time for use in the preparation of the FY 2003-04 budget.

· Recommendation of Auditor"s report

1.8.6 Evaluate whether the Department has too many passenger vehicles and if so, work with the Purchase office to properly dispose of the excess. If the reverse is true, make certain that the Plan addresses and includes justifications for additional needs

· Assessment of Department

The Department concurs with the recommendation of the audit.

The evaluation of the number of passenger vehicles will be included in the Department"s comprehensive vehicle maintenance plan.

· Department Action plan and timeline

The development of the Department"s Comprehensive Vehicle Maintenance Plan is currently in process and should be completed January 2003.

· Recommendation of Auditor"s report

1.8.7 Explore alternative funding strategies for vehicle replacement and include a recommendation in the plan.

· Assessment of Department

The Department concurs with the recommendation of the audit.

The Auditor"s Report correctly points out that the majority of support for purchases derives from the general fund. The report also states that funding sources are somewhat limited. While initial research indicates that this is true for Engines and Trucks, The Department is currently in the process of exploring creative funding mechanisms for other Department vehicles. Rescue Squads and Specialty apparatus (Hazardous Materials Vehicles) may be eligible for funding under the Federal programs for Weapons of Mass Destruction (WMD) or Urban Search and Rescue (USAR). Ambulances may be fundable under public health grants or even private donation. The use of hybrid or electric vehicles for Fire Prevention and administrative personnel may be augmented by a myriad of programs designed to reduce reliance on fossil fuels.

While current legislation prohibits the use of 911 fees for anything other than radio and computer aided dispatch systems, there is momentum at the state and local level to expand the fee to cell phone users and allow funds to be used for other emergency response needs. These fees represent a huge and continuing source of funding for emergency service systems.

While the City limits the issuance of general obligation bonds, the amount of money required to raise inventory levels of apparatus to an acceptable level may require research into the possibility of a bond measure. The auditor also cited the City of Chicago and its annual issuance of E notes as an example of alternative funding strategies.

The Department has concluded that it is appropriate to recommend a similar funding strategy to the Board of Supervisors for inclusion in fiscal year 2003-2004.

· Department Action plan and timeline

In order to fully explore all options for alternative funding of capital goods and apparatus, the Department will need to either develop in-house expertise in grants, bonds and fee funding, or rely on contracted consultants to provide counsel. The Department may be able to tap into some of this expertise that currently resides in other City Department (i.e. Police Department Grants Unit, Department of Public Health, etc.). An analysis of funding sources will be included in the Department"s comprehensive vehicle maintenance plan to be completed by January 2003.

· Recommendation of Auditor"s report

1.8.8 Evaluate vehicle assignments to determine the appropriateness of assigning vehicles to on-call personnel who reside a substantial distance from the City.

· Assessment of Department

The Department concurs with the recommendation of the audit.

The Department anticipates that evaluation of the number of passenger vehicles will be part of the Department"s comprehensive vehicle maintenance plan. It should be possible to change the assignments of passenger vehicles as the appropriateness of the assignment is determined.

· Department Action plan and timeline

The development of the Department"s Comprehensive Vehicle Maintenance Plan is currently in process and should be completed January 2003.

· Recommendation of Auditor"s report

1.8.9 Review and reach a clear understanding with the Purchaser"s Central Shops on the circumstances under and the extent to which the Department will be able to contract directly with outside vendors for apparatus maintenance.

·Assessment of Department

The Department concurs with the recommendation of the audit.

The Department is currently enhancing the ongoing working relationship with Purchaser"s Central Shops. The Department has increased the frequency of dialogue with Shop staff, and have instituted twice monthly meetings to assess status of accounts, repairs and projects.

An agreement has been reached with Shop staff to utilize, when necessary, private vendors for repairs under $5000. Outsourcing is coordinated through Central Shop"s to maintain accurate records for vehicles and equipment. This new policy has provided the Department with quicker turnaround and greater cost efficiencies for critical repairs, and has helped ensure compliance with manufacture"s warranties and recalls

The Department has instituted a number of new polices to enhance coordination between our two Departments. These new polices include earlier start times for repairs to provide quicker turnaround and less "down time" for units, and use of mobile mechanics for routine service and inspections. The Department will continue to pursue other creative solutions to repair and maintenance.

· Department Action plan and timeline

Completed.

The Department will continue to explore new polices to enhance coordination with Purchaser"s Central Shops.

· Recommendation of Auditor"s report

1.8.10 Follow the recommendation in another section of this report to civilianize positions of uniformed personnel in the Bureau of Equipment that function primarily as mechanics

·Assessment of Department

The Department disagrees with the recommendation of the audit.

The Department believes that uniform members possess a level of expertise that renders them invaluable in these support positions. Additionally these members are used to provide critical fire suppression duties at greater alarms and the scene of other emergencies.

The civilianization of these positions is also made in Section 2.3 Convert Some Uniform Positions into Civilian Positions. The Department has chosen to respond to this recommendation in great detail in Section 2.3 to maintain continuity.

· Recommendation of Auditor"s report

1.8.11 Include in the training regimen for the head of the Bureau of Equipment classes in professional fleet management.

· Assessment of Department

The Department concurs with the recommendation of the audit.

The Department has long advocated professional education and training. Equally important to the supervisor of the BOE is the ability to network with his / her colleagues nation wide. The relationships, information and resources collected by face-to-face communication at classes and seminars can prove invaluable when procuring and disposing of equipment.

The Department is currently researching locations and opportunities for this type of continuing education, as well as the existence of any professional organizations of which the Department may be unaware.

· Department Action plan and timeline

It is the Department"s intention to increase training funds for the supervisor of the BOE in the next budget cycle and assure the availability of training monies in future budgets.