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HomeMy WebLinkAbout2025.12.09_Worksession AgendaThis meeting is a worksession for Council/Trustee discussion only. There is no opportunity for public comments at worksession. PUBLIC NOTICE OF THE JOINT MEETING OF THE OWASSO CITY COUNCIL OWASSO PUBLIC WORKS AUTHORITY (OPWA) OWASSO PUBLIC GOLF AUTHORITY (OPGA) Council Chambers Old Central Building 109 North Birch, Owasso, OK Tuesday, December 9, 2025 - 6:00 PM NOTE: APPROPRIATE ACTION may include, but is not limited to: acknowledging, affirming, amending, approving, authorizing, awarding, denying, postponing, or tabling. 1. Call to Order - Mayor/Chair Alvin Fruga 2. Roll Call AGENDA RECEIVED DEC 04 2025 City Clerk's Office 3. Discussion relating to the City's Fleet Management Plan and the Master Equity Lease Agreement between the City of Owasso and Enterprise Fleet Management, Inc., of Clayton, Missouri Jennifer Morgans / Chris Roberts 4. Discussion relating to the monthly Sales and Use Tax Report and Revenue Outlook Chris Garrett 5. City/Authority Manager report 6. City Councilor/Trustee comments and inquiries 7. Adjournment Notice of Public Meeting filed in the office of the City Clerk on Friday, December 13, 2024, and the Agenda posted at City Hall, 200 South Main Street, at 12:00 pm on Thursday, December 4, 2025. M. Stevens, City Ine aty of uwasso encourages citizen participation. io request an accommodation due to a alsoomty, contact the city c1erK at least 48 hours prior to the scheduled meeting by phone 918-376-1502 orby email to istevens@cifvofowasso.com TO: The Honorable Mayor and City Council FROM: Jennifer Morgans, Operations Support Supervisor SUBJECT: Proposed Fleet Management Plan DATE: December 4, 2025 BACKGROUND: On August 3, 2021, City Council approved the Master Equity Lease Agreementwith Enterprise Fleet Management (EFM), which established the "open-end equity (OEE) lease" as the city's primary method for acquiring general transportation needs. The open-end equity lease provides the following benefits: • The city only pays for the portion of the vehicle's value used during the lease term. • The city is responsible for the residual value at the end of lease, which typically results in equity gains due to its ability to purchase vehicles significantly below market value. • The OEE lease structure provides flexible terms, ensuring no penalty is imposed for exceeding mileage limits or requests for early termination. For the past 2-years, staff has closely monitored the program's progress in meeting key objectives and subsequently identified several areas where adjustment and adaptation will further improve results. Recommended changes included more flexibility in the lease terms and conditions, which was not initially supported by EFM. As a result of continued negotiations, EFM eventually agreed to provide more flexible options and support the changing needs of the city. The attached presentation serves to outline and summarize modifications being considered to the city's fleet management plan. ATTACHMENTS: Proposed fleet management plan presentation Draft copy of the proposed Fleet Utilization Scoring System (FUSS) document City of Owasso Proposed Fleet Management Plan FLEET SERVICES PRESENTATION Current Lease Program - Background ❖ In 2020, staff began working with Enterprise Fleet Management (EFM) to better understand fleet costs and identify ways to improve the city's management practices. It was determined that running assets too long can lead to higher maintenance expense, increased downtime, reduced fuel efficiency, and lower resale value. ❖ Prior to the evaluation, the city typically purchased fleet vehicles outright and kept the assets in service as long as possible to maximize value. At the time of the study, the average age of the city fleet was 10-years with many vehicles at 12+ years of service. ❖ In August 2021, City Council approved the Master Equity Lease Agreement with EFM, which adopted the `Open -End Equity (OEE) Lease' as the city's primary method for acquiring certain transportation needs at City Hall, Public Works, Parks, Police, and Fire Departments. OEE Lease Program - Staff Expectations ❖ Lease fleet potential of 100 units ❖ Reduce average age of the city fleet Save cost on fleet maintenance ❖ Improve fleet fuel economy ❖ Reduce downtime associated with fleet repairs ❖ Enhance city's brand image ❖ Boost employee morale and job satisfaction ❖ Increase equity return through effective remarketing of surplus assets OEE Lease Program Results - Achievements Average age of the city fleet has decreased from 10- to 5-years. c• Specific to lease vehicles that have replaced owned -assets, maintenance cost has decreased from an average of $146/unit/month to $36/unit/month. Staff estimates an average increase of 1.5 mpg in fuel economy with each lease vehicle, which equates to $50-$100 annual savings/unit, contingent on price of fuel. Prior to October 2024, dataset for measuring fleet downtime did not exist, making historical comparison impossible; staff assumption is uptime has improved due to reduced maintenance requirements. Modern vehicles contribute to a positive brand image. Employees appreciate the enhanced safety, comfort and reliability of newer model vehicles. •: EFM remarketing capabilities are differentiated by vast industry experience, a large network, and a multi -channel approach. Although only two (2) vehicles have been remarketed thus far, staff's expectations are that EFM's support will provide higher returns overall than resale through public auction. OEE Lease Program - Current Status ❖ To date, the city has leased a total of 51 vehicles, replacing surplus assets and providing new fleet additions, at a total cost of $1,143,983 in lease payments (total does not include misc. fees such as delivery). ❖ Over same period, staff estimates $158,000 was saved through reduced maintenance, improved fuel economy, and equity gains from the sale of two (2) lease vehicles turned back for replacement. ❖ Per the original OEE lease strategy, the city is projected to operate 100 lease vehicles by FY29, at an estimated cost of $3.8M in cumulative payment obligations. Reductions in maintenance expense and fuel cost over the 8-year period are expected to yield approximately 500k in returns. OEE Lease Program Results - Lessons Learned t. Savings achieved through reduced maintenance, improved fuel economy, and equity gains are diminished by the cost of lease charges. 2. Continuous lease payment obligations can be a financial burden in a recessed or depressed economy. 3. Current lease strategy does not provide a viable exit plan should the city elect to scale back or discontinue the program. a. Replacing assets too soon (under -cycling) can be as inefficient as keeping assets too long (over -cycling). 5. Depending on a vehicle's utilization, it is more cost-effective for the city to own the asset opposed to lease. GOAL - Optimal Asset Life -Cycle Policy ❖ Staff proposes a management plan that utilizes a mix of acquisition and remarketing strategies, along with ongoing analyses of the fleets' total cost of ownership (TCO), to support the goal of an optimal asset life -cycle policy. Recommended Adjustments - Acquisition Strategy ❖ Purchase fleet assets outright when possible, but continue paying minimum retainer fee ($25/month/unit) to utilize EFM's expertise for remarketing support. ❖ Maintain the ability to utilize alternate forms of financing, including leasing, borrowing from OPWA, and low -interest loans, to ensure the city can fulfill its annual transportation needs when faced with budget constraints and volatility in the auto markets. ❖ Which acquisition method(s) to use will be at the discretion of the Finance Director and City Manager to develop the best fiscal strategy that aligns with the city's financial situation, operational goals, and risk tolerance. Recommended Adjustments - Total Cost of Ownership Analyses ❖ Maintain management information systems) that track and analyze expenses throughout an asset's lifecycle to identify when operating costs will begin to exceed projected resale value. A means to forecast diminishing returns will help staff anticipate, plan, and budget for replacement needs. ❖ Adopt the Fleet Utilization Scoring System (FUSS), similar to that developed by the City of Tulsa, to prioritize the replacement of fleet assets based on criteria such as vehicle age, engine hours/mileage, reliability and maintenance cost. Assets will be ranked with a maximum score of 26 points. The higher the score, the higher the priority for replacement. Recommended Adjustments - Remarketing Strategy ❖ At the end of an asset's useful life, the ability to utilize various remarketing channels such as lease turnback, asset assignment, and quote solicitation, in addition to the traditional "public auction" process will expand opportunities for maximizing equity returns while ensuring transparency. ❖ Remarketing involves continuously assessing the fleets' condition, determining resale value, selecting the best channel(s) for resale, and planning ahead for maximum return. The proposed fleet plan relies on EFM's remarketing expertise while staff researches and qualifies options to potentially reduce reliance on the private -sector. ❖ Reinvest all equity gains in replacement vehicles. Consider establishing a consolidated accounting system for tracking all related fleet acquisition expenditures and equity gains. Adjustments - Affect on Lesson # 1 Lease Charges Offset O&M Savings ❖ Purchasing vehicles outright or making a significant down payment before leasing/financing will eliminate/reduce the cost of interest and third -party management fees, which can range from 10% to 30% of the capitalized price of the asset depending on annual percentage rate (APR) and length of term. ❖ Staff estimates the city has paid EFM approximately $257,000 (22.5% of total payments) in lease charges over the past four (4) years with only $158,000 saved through reduced O&M cost and equity gains over same period. ❖ Once vehicle's reach end of term and remarketing begins to produce equity returns, the cost of cumulative lease charges will also diminish equity gains. Adjustments - Affect on Lesson #2 Burden of Continuous Payment Obligations ❖ The city spent $442k on OEE Lease payments in FY25. This payment obligation is projected to reach upwards of $800k annually once the city reaches a total of 100 leases. Under the original OEE Lease strategy, the city would remain in a continuous payment cycle to maintain the leased fleet. By positioning itself to always be the majority owner of its fleet assets, the city will remain in control of costs and ensure flexibility, especially in times of economic uncertainty. When lease -option or traditional financing is utilized, the city will pay down the capitalized cost as aggressively as possible to ensure that third -party fees are low and payment obligations remain manageable. Adjustments - Affect on Lesson #3 No Viable Exit Plan w/OEE Lease ❖ The OEE Lease strategy is designed to be a never-ending replacement cycle intended to maintain a fleet of vehicles with an average age of 4-years. ❖ To cease the OEE Lease program, the city would only need to pay the 'end of agreement' fees to fulfill its contractual obligations. In order to own the vehicles, however, the city would also have to pay the remaining reduced book value attached to each lease, which could be a considerable one-time investment. Even more costly would be the option of terminating the lease agreements and buying replacement vehicles outright through alternate channels. ❖ Acquisition strategies that ensure complete, majority, or optional ownership of fleet assets will ensure a viable exit plan. When leasing, utilizing 'lease -option' agreements along with large down payments will keep recurring expenses low and ensure that the costs to walk away are predictable and manageable. Adjustments - Affect on Lesson #4 Under -Cycling Inefficiencies •a On average, it is recommended that new vehicles be kept a minimum of 3-4 years to avoid the steepest rate of depreciation. However, city vehicles are generally low mileage and well maintained, which slows depreciation - extending the assets useful life. To maximize purchase and utilization value, staff recommends running assets closer to 6-8 years or 60k-80k miles. •:• The objective is to use the asset as long as possible before reaching the point where operating costs exceed resale value. Utilizing the aforementioned FUSS tool along with ongoing analysis of market trends will lead to an informed decision on when to replace assets. Adjustments - Affect on Lesson #4 Continued ... Over -Cycling Inefficiencies ❖ Keeping fleet assets too long can lead to increasing operating costs, operational inefficiencies and missed opportunities for strong financial returns. As vehicles accumulate engine -hours and/or mileage, the likelihood of more frequent and costly maintenance increases, as does the potential for lost productivity while the asset is out of service for repairs. In addition, older vehicles are generally less fuel efficient. ❖ Again, the objective is to use the asset as long as possible before reaching the point where operating costs exceed resale value. Low mileage, well maintained assets can push the limits of time and potentially be utilized for up to 8-10 years before retirement. Utilizing the FUSS tool along with ongoing analysis of market trends will lead to an informed decision on when to replace assets. Adjustments - Affect on Lesson #5 Own or Lease Assets? ❖ The proposed plan recommends purchasing fleet assets outright where possible, but continue paying EFM a retainer for remarketing support; while maintaining the option of financing (leasing and/or low -interest loans), as necessary to fulfill annual transportation needs. ❖ Depending on an asset's intended utilization, the OEE Lease opportunity remains a good option for certain conditions, in as long as the agreement is structured as a 'lease -option' to enable ownership if desired. For example, job responsibilities that involve a lot of driving may benefit from more frequent vehicle rotations, aligning with the traditional 3-4 year replacement cycle. Conclusion - Staff Recommends: ❖ A blended fleet acquisition plan that leverages the advantages of both "ownership" and "financing" strategies to provide an optimal level of control, adaptability, and long-term stability. ❖ Utilizing management information system(s) and tools that track and analyze expenses throughout an asset's lifecycle to identify when operating costs will begin to exceed projected resale value. A means to forecast diminishing returns will help staff anticipate, plan, and budget for replacement needs. ❖ Expanding the remarketing strategy to consider lease turnback, asset assignment, and quote solicitation, in addition to "public auction" to expand opportunities for maximizing equity returns. ❖ Continue partnership with EFM for acquisition and remarketing support. The City of Owasso is HEAlpeople•REALL�aracter•REAL Community Fleet Utilization Scoring System FLEET UTILIZATION SCORING SYSTEM (FUSS) - TABLE OF CONTENTS - SECTIO N 1- INTRODUCTION Vehicle Categories 4 Replacement Criteria 4 FUSS Results 5 Fleet Units Rated by the FUSS (Chart 1) 6 Replacement Recommendations (Table 1) 7 SECTION 2 — GENERAL INFORMATION Four Scoring Categories (Table 2) 10 Cumulative FUSS Score Rating (Table 3) 10 Age Category (Table 4) 11 LTD Mileage Category (Table 5) 12 LTD Hours Category (Table 6) 13 Reliability Category (Table 7) 14 YTD Maintenance Costs Category (Table 8) 15 SECTION 3 — FUSS SCORING FUSS Scoring by Unit SECTION 4 -- FUSS DATA FUSS Data by Unit 1 SECTION 1 INTRODUCTION AND SUMMARY Fleet Utilization Scoring System (FUSS) Introduction and Summary The Fleet Services Team developed the Fleet Utilization Scoring System (FUSS) to help set replacement priorities and ensure the most deserving City of Owasso vehicles are replaced with the level of available funding. This rating system was modeled very closely to the FUSS system created by the City of Tulsa. A VIN decoder was used to determine the Gross Vehicle Weight Rating (GVWR) for each on -road vehicle in the City's fleet (215 vehicles). The vehicles were placed into 10 categories based on the GVWR range (see below).. The FUSS provides recommended replacement quantities for each of these categories. 1) Automobiles (0-6,000 GVWR) 2) Marked Police Automobiles (0-6,000 GVWR) 3) Marked Police SUV's (0-6,000 GVWR) 4) Marked Police Trucks (0-10,000 GVWR) 5) Vans (0-6,000 GVWR) 6) SUV's (0-6,000 GVWR) 7) Light Duty Trucks (0-10,000 GVWR) 8) Medium -Duty Trucks (10,001 -19,500 GVWR) 9) Heavy Duty L Trash Trucks (19,501-33,000 + GVWR) 10) Fire Apparatuses (0-33,000+ GVWR) The FUSS recommends replacement quantities based on: 1) Age 2) Life -To -Date (LTD) Mileage; OR, LTD Hours 3) Reliability (YTD Work Orders] 4) YTD Maintenance and Repair Costs 5) Vehicle Condition 6) Vehicle Use The data used to determine FUSS recommended replacement quantities is obtained from the iWorQ Fleet Management System. iWorQ software is used to track and automate fleet maintenance activities for the City's fleet. The FUSS provides recommended replacement quantities for 215 vehicles. These vehicles are assigned to and purchased by the following departments. (See table 1) Table 1 A Animal Control M PW Admin fi City Garage N Recycle C Community Development O Refuse D Engineering P Storm Water E EOC Q Streets F Fire R Strong Neighborhood G General Government S SupportSentices H Golf Maintenance T Vegetation I Information Technology U Wafer J Managerial V Waste Water Collection K Parks W Waste Water Treatment L Police Fleet Utilization Scoring System (FUSS) Introduction and Summary The FUSS provides the following results I Chart 1 Fleet Units Rated By The FUSS Ven 21y T. ATNM 3 3 SW 3 3 Pond Tmck T 3 4 NWSW Faedar U Ir 4 6 Me?um Tmrk 6 9 _ l�i tilhtfta 21 6 1 19 1 .__6/31 WMTr 4 6 Fhe4ppe.W T 4 3 Mr - 3 p 14 m Fleet Utilization Scoring System (FUSS) Introduction and Summary a6 a sp w Tp OEacellent Vehidelype -E=11 VeryGood Ga Poir eeplacement Tptal Van 1 2 8 Trash Truck i 3 3 1 8 SW 3 2 5 PM Il ck 4 3 7 14 patdsw 14 19 14 4 51 petrel car 1 1 4 6 1 13 1 24 McNum Truk 1 2 9 8 1 21 O MTmck 2 31 19 6 58 Nee i& 1 1 6 4 1 13 HmAppmt 3 4 7 14. Ca 3 1 4 Tetds 4 67 n 6a a 215 OF& OGmd The FUSS will be updated annually by the Fleet Management Team future reports will recommend replacement quantities for all on- OBeplacemeM road vehicles. The FUSS is intended by the Fleet Management Division to be a planning document. The information contained in OVery Gped this document may be used as guidelines for future vehicle replacements. This document shall not be considered or construed to be a statement of concluded policy. variations and modifications, in whole or in part, to the suggested replacement guidelines contained herein may be anticipated. Therefore, the Fleet Management Team cautions against any and all public reliance upon this document or its contents for anything other than its stated purpose. Identified on the next page is a summary of vehicle replacement recommendations for all departments and funds (Table 1). 11 Fleet Utilization Scoring System (FUSS) Introduction and Summary Table 1 - Summary of Vehicle Replacement Reccommendations Line # Dept. Fund Auto Marked Marked Marked SUV Van Light Med Heavy Fire Totals Auto SIIV Tnirk Tri irl Tn orb Tri irb Ann �'Genercl Government Information - • • • ®-_-_-��__�© Total 215 SECTION 2 GENERAL INFORMATION Fleet Utilization Scoring System (FUSS) General Information The City's on -road fleet is scored in 5 categories (Table 2). Table 3 - Cumulative FUSS Score Rating # Vehicle Type Rating Cumulative Score 1 ALL CATEGORIES Excellent <2 Points 2 Same Very Good 3-6 Points 3 Same Good 7-12 Points 4 Same Fair 13-19 Points 5 Same Needs Immediate Consideration for Replacement 20-26 Points Table 2 - Five Scoring Categories # Category Scoring Maximum Score Each vehicle is 1 Age Time In Service scored 0, 1, 27 3. 6 Points 4.5. or 6 Life to Date (LTD) 0, 1, 2, 3, 47 5, or 2 Mileage OR Hours 6 6 Points Reliability (YTD 0, 1, 2, 3, 4, or 3 Work Orders) 5 5 Points YTD Maintenance & 0, 1, 2, 3, 4, or 4 5 Points Repair Costs 5 5 Condition 0. 1, 2. 3. or 4 4 Points For two of the five categories, a vehicle is scored from 0 to a maximum of 6 points; for two of the categories, a vehicle is scored from 0 to a maximum of 5 points. For one of the categories a vehicle is scored from a 0 to a maximum of 4 points. The maximum total score a vehicle can obtain is 26 points. Vehicles that receive a cumulative score of 8 or under are rated in excellent shape. (table 3, # 1) Vehicles that receive a score of 9-13 are rated in good shape. (table 3, #2) Vehicles that receive a score of 14 to 22 are rated in fair shape. (table 3, #3) Vehicles that receive a score of 23 to 26 are rated as "needs immediate consideration for replacement". (table 3, #4) For example a vehicle scoring 2 points in three of the 5 categories will receive a cumulative score of 10 points. (2 x 5 = 10) Per table 3 this vehicle is rated in good condition. 10 Fleet Utilization Scoring System (FUSS) General Information Table 4 - Age Category # Vehicle 0 1 2 3 4 5 6 Pts Pt Pts Pts Pts Pts Pts Automobile 0-0.9 1-1.9 2-3.24 3.25- 4.50- 5.75-6.9 >6-9 1 Van, SW yrs yrs yrs 4.49 yrs 5.74 yrs yrs yrs Marked Auto 0-0.9 1-1.9 2-2.9 3-3.9 4-4.9 5-5.9 >5.9 2 Marked SW yrs yrs yrs yrs yrs yrs yrs Marked Truck Light Duty 0-0.9 1- 1.9 2-3.4 3.5-4.9 5-6.4 6.5-7.9 >7.9 3 Truck yrs yrs yrs yrs yrs yrs yrs 4 Medium 0-0.9 1-1.9 2-3.74 3.75- 5.5-7.24 7.25-8.9 >8.9 Duty yrs yrs yrs 5.49 yrs yrs yrs Truck yrs Heavy Duty 0-0.9 1-1.9 2-3.9 4-5.9 6-7.9 8-9.9 >9.9 5 Truck yrs yrs yrs yrs yrs yrs yrs Fire App The Age Category is measured by Time in Use. (Table 4). All vehicles with time in use between 0 and 1 year receive 0 points. Remaining points are based on 1 to 2.5 year increments. 11 Fleet Utilization Scoring System (FUSS) General Information Table 5 - LTD Mileage Category # Vehicle 0 Pts 1 Pt 2 Pts 3 Pts 4 Pts 5 Pts 6Pts l Auto, Marked, 0-17,499 17,500-34,999 35,000-49,999 50,000-64,999 65,000-79,999 80,000-99,999 >99,999 Miles Van, SUV, Miles Miles Miles Miles Miles Miles Light Duty Truck, Fire 2 Medium Duty 0-22,499 22,500-44,999 45,000-59,999 60,000-74,999 75,000-89,999 90,000-109,999 >109,999 Truck Miles Miles Miles Miles Miles Miles Miles 3 Heavy Duty 0-24,999 25,000-49,999 50,000-64,999 65,000-79,999 80,000-94,999 95,000-114,999 >114,999 Truck Miles Miles Miles Miles Miles Miles Miles The Mileage / Hours Category is measured by LTD metered mileage or LTD metered hours. Light duty vehicles with LTD mileage between 0 and 17,500 miles receive 0 points. Medium Duty Trucks with LTD mileage between 0 and 22,500 miles receive 0 points. Heavy Duty Trucks with LTD mileage between 0 and 25,000 miles receive 0 points. Remaining points are based on 5,000-15,000 mile increments. LTD Mileage and LTD Hours are considered one of 6 FUSS categories. Of 228 on -road vehicles, the Fleet Management System identifies approximately 45 with hour readings. Vehicles with hour readings receive a FUSS score of 0 to 6 in both Mileage and Hours. The "Hours" score is used if it is higher than "Mileage," and the "Mileage" score is used if it is higher than "Hours." If both scores are equal, the "Mileage" score is used. Scoring for LTD Hours is outlined in Table 6. 12 Fleet Utilization Scoring System (FUSS) General Information Table 6 - LTD Hours Category # Vehicle 0 Pts 1 Pt 2 Pts 3 Pts 4 Pis 5 Pts 6 Pts Auto, Van, sUV, 0-649 650-1 299 1,300-3 249 3,250-5 199 5,200-7,149 7 150-9 099 >9,099 Hours 2 Marked, Fire Hours Hours Hours Hours Hours Hours 3 Light Duty 0-649 650-1,299 1,300-3,574 3,575-5,849 5,850-8,124 8,125-10,399 Truck Hours Hours Hours Hours Hours Hours >10,399 Hours 4 Medium Duty 0-649 650-1,299 1,300-3,899 3,900-6,499 6,500-9,099 9,100-11,699 >11,699 Hours Hours Hours Hours Hours Hours Hours Truck 5 Heavy Duty 0-649 650-1,299 1,300-4,224 4,225-7,149 7,150-10,074 10,075-12,999 & Trash Trucks Hours Hours Hours Hours Hours Hours >12,999 Hours 13 Fleet Utilization Scoring System (FUSS) General Information Table 7 — Reliability (YTD Work Orders) # Vehicle 0 Pts 1 Pt 2 Pts 3 Pis 4 Pis 5 Pts 1 Auto, Van 0-2 3-4 5-6 7-8 9-10 >10 &SW 2 Light Duty Truck & 0-3 4-7 8-11 I1-13 14-17 >17 Marked 3 Medium & Heavy Duty 0-4 5-8 9-12 13-17 18-20 >21 Fire App. The Reliability Category is measured by YTD work orders. YTD work orders are summed for each vehicle class and the median range equals a rating of 3. Vehicles with YTD work orders below the median range receive a score of 3. Vehicles with YTD work orders below the median range recieve a score of 0, 1, or 2 based on incremental averaging (IA). Vehicles with a YTD work orders above the median receive a score of 4 or 5 based on IA. Scoring for the reliability category is outlined in Table 7. 14 Fleet Utilization Scoring System (FUSS) General Information Table 8 — YTD Maintenance & Repair Costs # Vehicle 1 0 Pts 1 Pt 1 2 Pts 1 3 Pts 1 4 Pts 1 5 Pts 1 ALL 0-4.9% 5-9% 10-14% 15-19% 20-24% >25% The Maintenance & Repair (M&R) Costs Category is measured by YTD labor, parts, and vendor repairs. YTD M&R Costs are summed for all vehicle classes and the median range equals a rating of 3. Vehicles with YTD M&R Costs below the median range receive a score of 0, 1, or 2 based on IA. Vehicles with YTD M&R Costs above the median range receive a score of 4 or 5 based on IA. Scoring for the Maintenance and Repair Costs Category is outlined in Table 8. 15 Table 9 - Condition Rating #i Vehicle 0 Pts 1 Pt 2 Pts 3 Pts 4Pts Good Fair Needs Consderation Very Good Excellent Has some cosmetic Has multiple for Immediate Excellent Lookd new, in repairable defects, cosmetic and/or Replacement mechanical excellent but is free of major mechanical problems Has been wrecked, 1 ALL condition with only mechanical mechanical thatwili require not drivable, repair condition. No minor cosmetic problems. Paint and significant repair. Bi- exceeds value. All flaws, minimal visible defects. body may need Fuel CNG vehicles full CNG vehcles Will signs of wear. some touch up. will be rated as fair. rated as NCIR. Condition Category scores are derived by visually inspecting each vehicle and grading whether units are in excellent, good, average, or poor condition. The Kelly Blue Book ratings are used as a general guideline to score vehicles with the addition of fuel type for bi-fuel and CNG vehicles. A unit can score 0 - 4 points in this category. A score of 1 represents a vehicle in the best condition, and a score of 4 represents a vehicle in the worst condition. Going forward, we will inspect all vehicles annually and assign vehicle condition scores, and these scores will be used for future FUSS updates. SECTION 3 FUSS SCORING Sorted by Dept. 17 FLEET RATINGS AMltft C SVG 255 IflWFSGMMDAl33)1 04M V.Ki. 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