Subject/Title
Fleet & Motorized Equipment Asset Management
Date Effective
Revision Date Effective
August 16, 2010
Code Number
BSS 16
Business Support Services
City Manager
Responsible Key Business
Objective: To provide and maintain an effective, efficient and environmentally sustainable fleet of
vehicles, motorized (non-plant) and trailed equipment, and manage this fleet and equipment in a manner
that fulfills the City’s mission and the user’s operational requirements in a cost effective way. This will
be accomplished by ensuring:

All Assets are identified and accounted for in the City’s Fleet Management Information System;

The City’s Assets are used in a responsible manner so as to ensure valuable and long-term use
of these assets;

The size and operation of Assets are standardized into the fewest classes and configurations
necessary to meet the City’s business needs;

Asset selection is structured to achieve the lowest possible total cost of ownership with the lowest
emission vehicles and equipment possible;

That Asset costs and other performance measures are accurately tracked and reported in a timely
manner; and

Assets are maintained in accordance with manufacturers’ and other appropriate guidelines to
provide City staff with safe, reliable transportation and operations equipment.
Policy:
1. Scope. This policy applies to all Assets, as defined below, acquired or valued at $5,000 or more
except as specifically identified in this policy. Assets purchased by the City of Charlotte under a
grant, which will be transferred to or used and maintained by another government agency are
exempt from this policy.
2. Official Use of Vehicles. Assignment of City vehicles for use by City employees and use of
private vehicles for City business shall be done in accordance with Appendix A (Use of City and
Private Vehicles for City Business) to this policy. The Equipment Management Division (EMD)
of Business Support Services (BSS) shall report suspected instances of asset misuse/abuse to the
Key Business Unit (KBU) Asset Coordinator. Each KBU is responsible for investigating
allegations of misuse/abuse and taking appropriate action.
3. Environmental Considerations. In balancing its responsibility for financial and environmental
stewardship, the City shall purchase, lease, or otherwise obtain the most energy efficient assets
that meet the operational needs of the business unit or agency for which the assets are intended,
consistent with its budgetary constraints. The City shall, to the extent economically practical,
manage and operate its fleets in a manner that is energy efficient and minimizes emissions.
A. As a general guideline, deployment of alternative fuel technologies will only be
considered in those cases where the return on investment (the investment being the
difference between standard technology and alternative technology) is no more than twothirds (2/3) of the anticipated useful life of the vehicle including any non-standard
maintenance costs. EMD will validate lifecycle cost claims of technologies either
through independent studies or internal testing.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
2
of
19
B. Assets powered by fossil fuels shall not be allowed to idle for a period of longer than five
(5) minutes. Exceptions to this provision are:
i. Public safety emergency vehicles;
ii. CATS revenue vehicles adapting/maintaining temperature for passenger
comfort/health;
iii. To recharge hybrid electric vehicles;
iv. Traffic or adverse weather conditions;
v. Power takeoff involving cargo or work functions;
vi. Conformity to manufacturer’s specifications; and
vii. Maintenance or diagnostics procedures.
C. Vehicle and equipment operators will take measures to reduce contributing to groundlevel ozone. Ground-level ozone pollution is formed when emissions from everyday
items combine with other pollutants and "cook" in the heat and sunlight. The highest
ozone levels are usually recorded in summer months (between June and September) when
temperatures approach the high 80s and 90s and the wind is stagnant or light. During
these months (June through September), to the extent operational requirements permit,
asset operators will:
i. Refuel before 8 a.m. and after 6 p.m., so fuel vapors will not have a chance to
"cook" into ozone.
ii. Stop fueling when the nozzle clicks off, so as not to overfill or drip fuel.
iii. Avoid idling unnecessarily while waiting in parking lots or service lines. (See
paragraph 3.B. above.)
4. Asset Management.
A. Purchasing of Assets: All purchases of assets shall be in accordance with the Appendix
B of this policy (as appropriate) and the Citywide Procurement Policy (BSS 14).
i. Business units requiring new assets as additions to the asset inventory, regardless
of the funding source, must have an approved budget for the addition and be
included on the current fiscal year Capital Replacement List or be approved by
Budget & Evaluation. New asset requirements shall be coordinated through
BSS-EMD, who shall assist in the development of appropriate vehicle and
equipment specifications.
ii. Where possible, specifications shall be developed in a flexible enough manner to
allow the purchase or lease of alternatively fueled Assets.
iii. BSS-EMD will develop, with the KBU an approved Asset specification
consistent with the goal of ensuring the size and operation of Assets are
standardized into the fewest classes and configurations necessary to meet the
City’s business needs. Specifications shall be developed in accordance with
Appendix B and shall ensure the Asset class being requested is appropriate for
the Asset’s operational requirements. Particular attention will be given to
opportunities to substitute smaller more energy efficient vehicles without
compromising operational capabilities. Any Asset specification changes and/or
substitutions shall be shared with all KBU Asset Coordinators involved with the
said asset with all in agreement.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
3
of
19
iv. All optional equipment needed either in or on the Asset in its final configuration
must be identified in the specification development process. This includes, but is
not limited to, special purpose equipment (e.g. snow plow, spreaders, lifts, etc.),
electrical equipment (e.g. radios, lights, special wiring, etc.), towing apparatus,
and tool boxes.
1. KBUs requesting the Asset must identify how the options are to be
resourced (purchased new with the asset or recycled from another asset).
2. Options such as cruise control, stereo equipment, electric door locks, etc.
not included with the base asset shall not be purchased.
v. Diagnostic hardware and software, special tools, and other items necessary for
the proper maintenance of the Asset will be identified in the specification
development process. These items will be purchased by the KBU with the new
Asset, if not maintained by BSS-EMD at the time of requisition.
vi. Frontline fire fighting apparatus are exempt from paragraphs i, ii, and iii above;
however, the Charlotte Fire Department shall coordinate with BSS-EMD to
ensure the impact of these purchases on maintenance operations are properly
assessed and adequately funded.
B. Information Management: All Assets (acquired or valued at $5,000 or more) will be
entered into the City’s Fleet Management Information System (FMIS) operated and
maintained by BSS-EMD.
i. Any KBU employing assets not using the City’s FMIS on the effective date of
this policy may obtain an exception of this requirement from the City Manager
based on a recommendation from the Chief Information Officer (CIO).
ii. KBUs that receive an exception to using the City’s FMIS are responsible for
meeting the fleet and equipment reporting requirements established in this policy
and providing BSS-EMD access to these reports.
C. Utilization of Assets: Assets will be operated in accordance with this policy and federal,
state and local laws as applicable.
i. General Vehicle Use.
1. Assets shall be used in a responsible manner within the equipment’s
design and configuration specification.
2. Personnel operating City-owned motor vehicles must comply with motor
vehicle traffic laws of the State and local jurisdiction.
3. Operating a City-owned vehicle or equipment while under the influence
of alcohol and/or illegal drugs is strictly prohibited. Moreover, personnel
shall not consume alcohol or illegal drugs while operating City-owned
vehicles.
4. When not in use, Assets shall be parked at an assigned, approved
location, with the keys removed. Asset secured and the vehicles locked
and windows rolled up, except as may otherwise be provided by this
policy.
5. Operators shall report loss of or damage to fleet and equipment Assets,
and other property associated with the Asset. Damage to the Asset,
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
4
of
19
property damage caused by the Asset and accidents shall be reported in
accordance with City policy (FIN 8 – Vehicle Accident Reporting
Procedures). Loss due to theft will be immediately reported to local law
enforcement authorities and the operator’s supervisor.
6. Wearing of seat belts is mandatory for all vehicle occupants except
where exempt by CMPD policy.
7. Use of tobacco products including smokeless tobacco in City vehicles is
prohibited.
ii. All vehicle operators must comply with City policy FIN 3, Driving Authorization
Procedures.
iii. Each KBU shall conduct an annual review of its fleet vehicle utilization in
accordance with Appendix B of this policy. The purpose of this review is to
ensure the City is maintaining the minimum number and correct mix of fleet and
equipment Assets necessary to meet its operational needs.
iv. The assignment of City vehicles shall be done in accordance with Appendix A of
this policy.
v. Business units that have unassigned vehicles that are used as Pool Vehicles shall
establish procedures to ensure their proper scheduling, use, treatment and
maintenance. A copy of these procedures shall be provided to the EMD Division
Manager.
5. Maintenance. The City shall implement an effective and efficient fleet maintenance program for
all Assets covered under this policy to provide maximum availability of safe and serviceable
Assets and to maximize the economic service life of these Assets.
A. Preventive maintenance (PM) shall be the primary focus of the asset maintenance
program. The objective of the PM program is to minimize breakdowns, unscheduled
repairs, and undue wear and tear on the Asset. PM services should comply with the Asset
manufacturer’s service schedule based on use patterns (e.g. normal, severe, etc.) and
applicable federal and state requirements.
i. Asset owners (or designee) shall:
1. Collaborate with EMD to establish PM service schedules for all Assets.
2. Comply with the established PM service schedules.
ii. EMD shall:
1. Establish the PM service schedule for all Assets.
2. Develop business processes for ensuring effective scheduling, execution
and reporting of Asset PM services in collaboration with the Fleet
Management Advisory Team (FMAT).
3. Review the Asset PM schedule at least annually to ensure Assets are
maintained in the most cost-effective manner to ensure optimal safety
and efficiency.
4. Incorporate PM services performance measures into individual business
unit service level agreements.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
5
of
19
iii. Asset owners whose Assets are not serviced by EMD shall comply with the PM
requirements established above.
B. Asset historical records, tracking details of work performed and costs shall be maintained
on each Asset over its useful life. At a minimum, records for each vehicle should show
the total life-to-date costs of labor, parts, and sublet (outside commercial) repairs.
6. Disposal. Disposal of Assets shall be in accordance with applicable federal and/or state statutes
or guidelines through procedures established by the Procurement Services Division of Business
Support Services.
Responsibilities and References:
1. Key Business Executives (KBE) are responsible for:
A. Ensuring that all Assets under their control are managed in accordance with this policy.
B. Appointing an appropriate individual to serve as the KBU Asset Coordinator, if the KBU
has Assets as defined in this policy. If appropriate for the effective management of the
KBU’s Asset maintenance activities, the KBE may also appoint an individual to serve as
its Maintenance Coordinator.
C. Notifying the EMD Division Manager of the appointment of the KBU Asset Coordinator
and Maintenance Coordinator.
2.
Asset Coordinators are responsible for:
A. Serving as the primary point of contact for KBU Asset management issues identified in
paragraph 4 above.
B. Serving as the primary point of contact for KBU Asset management issues identified in
paragraphs 5 and 6 above, if the KBE chooses not to appoint a Maintenance Coordinator.
C. Serving as the primary point of contact for KBU Asset management issues identified in
Appendix B.
3. Maintenance Coordinators are responsible for:
A. Serving as the primary point of contact for KBU Asset maintenance issues identified in
paragraphs 5 and 6 above.
B. Working closely with EMD in effectively and efficiency executing the processes for
ensuring effective scheduling, execution and reporting of Asset PM services.
4. Business Support Services Key Business Executive is responsible for:
A. Supporting each KBE in the effective and efficient management of their Assets.
B. Ensuring that BSS meets the operational needs of the business units by providing
effective and cost efficient Asset management, maintenance and disposal services.
C. Serving as or appointing an executive sponsor for the Fleet Management Advisory Team.
5. Fleet Management Advisory Team (FMAT) is responsible for:
A. Advising BSS and EMD in the development and implementation of policies, processes
and practices affecting citywide Asset management with the goal of minimizing the
fleet’s environmental impact while maximizing the efficiency, effectiveness, and value of
the City’s fleet and equipment assets.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
6
of
19
B. Ensuring the effective execution of its specific responsibilities identified in this policy.
Definitions:
1. Asset: For the purposes of this policy, Assets are motorized vehicles, motorized off-road
equipment, powered non-plant equipment (e.g. generator), construction equipment, special
purpose and off-road vehicles, marine equipment, and trailers valued at or purchased for $5,000
or more.
2. Fleet Management Information System (FMIS): Refers to the software application maintained
by BSS-EMD for the purposes of Asset Management (currently the FASTER system).
3. Key Business Unit Asset Coordinator: An individual that serves as the primary point of contact
for business unit asset management issues identified in sections 4, 5 and 6 above and Appendix B
of this policy.
4. Maintenance Coordinator: An individual that serves as the KBU primary point of contact for
coordinating maintenance and disposal activities as outlined in this policy.
Supersession:
This policy supersedes City Policy BSS 2, Use of City and Private Vehicles for City Business and BSS 5,
Procedure to Purchase Vehicles/Equipment.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
7
of
19
Appendix A - Use of City and Private Vehicles for City Business
Policy: The City’s daily operations require the use of vehicles by City employees. Certain positions have
travel requirements which necessitate the designation of Full-time Drivers, Occasional Drivers or
assignment of City vehicles for after-duty hours use. Sworn police officers driving both marked and
unmarked vehicles are exempt from the provisions of this policy and may be assigned vehicles in
accordance with the Charlotte-Mecklenburg Police Department’s departmental directive for the
assignment and use of City vehicles. Non-sworn employees of the Charlotte-Mecklenburg Police
Department are subject to all sections of this policy.
1.
Environmental Considerations:
A.
B.
C.
2.
All operators of City vehicles must comply with the provision of paragraph 3 of the Fleet
and Motorized Equipment Asset Management Policy.
All operators will take reasonable measures to minimize any discharge of fluids from
vehicles and equipment. Fluids leaks or spills from vehicles or equipment can be harmful
to the environment. Reporting and cleaning up accidental discharges of hydraulic oil,
antifreeze, brake fluid, fuel and other fluid leaks from vehicles or equipment may be
required by local, state or federal law depending on the quantity. When operators
encounter a leak or spill they will:
i. Stop operating the vehicle or equipment if it is being operated.
ii. Take measures to stop or contain the discharge. Drip pans, absorbent materials
or other means may be used to contain the discharge and keep it from spreading.
iii. Report the discharge to their Supervisor, Safety Officer or other appropriate
personnel within their business unit.
iv. Take measures to ensure proper cleanup and disposal.
v. If the discharge is greater than 25 gallons or enters the storm drain system in any
amount, the discharge will be reported to local authorities through 311 and to the
State Division of Water Quality at (704) 663-1699.
All operators will only wash City vehicles and equipment at designated areas that have
proper pretreatment systems and drainage to the sanitary sewer. Outdoor washing of
vehicles and equipment that discharge detergents (even if biodegradable) and other
pollutants (oil, dirt, etc.) that are dislodged from vehicles and equipment into the storm
drain is against local, state and federal law. It is permitted to rinse vehicles and
equipment outdoors with water to remove minor deposits of dust or pollen.
Permitted Use of City Vehicles:
A.
All vehicle operators must comply with the current City policy FIN 3 Driving
Authorization Procedures. City employees may operate City vehicles and other City
equipment for which they possess a valid City driving permit. Non-City employees
performing work for the City or private citizens participating in the Charlotte Area
Transit System’s Vanpool Program may also operate City vehicles if authorized by the
supervising Key Business Executive or his/her designee.
B.
City-owned vehicles shall be assigned and used only in performance of official duties and
not for personal use (except for commuting and incidental stops which do not add
significant time to the trip or cost to the City). Transporting other City employees to and
from work is permissible provided the employee responsible for driving the vehicle has
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
8
of
19
Key Business Executive approval to transport other employees to work, and the person
being transported lives reasonably near the route normally taken by the employee to
whom the vehicle is assigned.
C.
3.
Generally, City vehicles will not be used to transport non-City employees except as
necessary to conduct City business. However, when the vehicle is used by a City
employee for an out-of-town business trip, the spouse or other family members may ride
if approved by the Key Business Executive.
Full-time Drivers may be assigned City vehicles or may use their personal vehicles for City
business. Key Business Executives shall consider one or more of the following factors when
assigning a City vehicle for use by a Full-time Driver during normal working hours:
A.
The position’s duties require high mileage driving; or
B.
The position’s duties require special equipment to be permanently mounted or routinely
carried in the vehicle; or
C.
The position’s duties require the vehicle be clearly identifiable as a City vehicle; or
D.
The potential liability to the driver is considered excessive due to the high frequency of
use, number of passengers, transportation of expensive equipment or other factors; and
E.
Availability of a City vehicle.
4. Full-time Drivers may request the assignment of a City vehicle for use during working hours.
Full-time Drivers who request to drive either a City vehicle or their private vehicle must stay with
that choice for a minimum of a year. Reimbursement for use of a private vehicle shall occur at
rates determined by the City Manager, which shall be periodically updated by the Finance KBU
as reimbursement rates change over time.
5. Occasional drivers may use a City owned pool vehicle or a private vehicle for work related travel.
Reimbursement for use of a private vehicle shall occur at rates determined by the City Manager.
6. Take-Home Vehicles
Employees may be assigned a City vehicle to take home. Such assignment is for the convenience
of the City and must be made by a KBE or his/her designee.
A.
Employees who are assigned a City vehicle to take home must pay a commuting fee to
the City as follows:
i.
The commuting fee will be computed on a per mile basis for the round trip
distance between the employee’s home and his/her assigned permanent work
location.
ii.
No commuting fee will be due if the employee is assigned an Exempt Vehicle.
The KBE or his/her designee must approve in writing each exemption to the
commuting fee and keep such documentation in the KBU, available for audit
purposes.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
B.
BSS 16
Page
9
of
19
iii.
If the commuting fee paid by the employee is less than the daily commuting rate
established by the Internal Revenue Service, then the difference will be
considered as income (for tax purposes) to the employee.
iv.
The commuting fee is waived on those days that an employee is in “On Call Pay
Status”.
v.
The commuting fee is determined by the City Manager.
A Key Business Executive shall consider the following conditions for assigning a City
vehicle for take home use:
i. The job regularly requires the employee to go directly from his/her home to a
worksite (and from worksite to home) without first going to a standard work
location and the nature of the employee’s work requires the use of a City vehicle.
ii. After normal duty hours job requirements include one or more of the following:
1. Use of special vehicle mounted equipment or equipment routinely
carried in the vehicle.
2. Response to emergency situations on a regular basis (at least an average
of twice a month).
3. Supervision of off-shift employees or contractors on a regular basis (at
least an average of twice a month).
iii. Public Health and Safety Requirements
When unity of command and 24-hour emergency response preparedness require a
reserve pool of off-duty, approved supervisory staff to respond in an official
capacity.
C. A take-home vehicle may be assigned to a City employee that is part of a carpool
transporting at least three City employees to and from the work location.
D. City vehicles assigned to take home must be parked at the employee’s primary residence
or a location approved by the Key Business Executive.
E. In special cases a Key Business Executive may authorize overnight use of a City vehicle
for periods of one week or less.
7. Take-Home Vehicle Assignments
All take-home vehicle assignments must be reviewed and evaluated by the Key Business
Executive or his/her designee annually during the month of December. A list of take-home
vehicles including at a minimum: BSS/EMD identification number, make, model, and assigned
employee must be sent by each KBU annually to Business Support Services Equipment
Management Division (BSS/EMD) during the month of January. When reviewing take home
vehicle assignments, the following conditions should be considered:
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
10
of
19
A. Current requirements of the job;
B. Productivity;
C. Availability of pool or other City vehicles; and
D. Cost to the City.
8. Pool Vehicles
A. Individual Key Business Units may establish a number of pool vehicles for general use.
Use of pool vehicles is at the discretion of the Key Business Executive or his/her
designee.
B. Operation of a pool vehicle shall be exclusively for official City business.
Definitions:
1. Full-time Driver: A full-time driver is an employee whose position requires that he/she:
A. Spend over half of the day working out of the office, or;
B. Drive in excess of 400 miles per month on average for City business.
2. Special Equipment: Specialized equipment are tools necessary for the performance of official
duties; instruments of communication devices that are mounted on or in the vehicle; large and bulky
items; or tools, instruments or equipment of such value as to raise the potential for loss and the
resultant liability.
3. On Call Pay Status: Employees are designated as being in “On Call Pay Status” if: (a) they are
required to remain on-call for emergency work during scheduled off-duty hours, and (b) they have
been approved by the Human Resources Director to receive payment for such hours at the rates
established by the City for on call pay from time to time.
4. Occasional Driver: Any employee who requires the use of a vehicle to perform his/her duties and is
not considered a Full-time Driver.
5. Exempt Vehicles: Employees who drive the following vehicles are exempt from the commuting fee
and reporting of commuting usage. (IRS Rules as determined by City Legal.)
A.
Clearly marked police and fire vehicles.
B.
Unmarked vehicles used by law enforcement officers.
C.
Vehicles designed to carry cargo with gross weight over 14,000 pounds.
D.
Bucket trucks.
E.
Delivery trucks with seating only for the driver, or only for the driver plus a jump seat.
F.
Dump trucks (including garbage trucks).
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
11
of
G.
Flatbed trucks.
H.
Passenger buses used as such with a capacity of at least 20 passengers.
I.
19
Trucks or vans specifically designed and used to carry heavy tools, testing equipment or
parts if the shelves, racks or other permanent interior construction which has been installed
to carry or store such heavy items is such that it is unlikely that the trucks will be used
more than infrequently for personal purposes.
Responsibilities and References:
1.
Related City Policies include:
A.
B.
C.
D.
2.
B&E 1 Employee Travel Policy
FIN 3 Driving Authorization Procedures
FIN 8 Vehicle Accident Reporting Procedures
HR 10 Executive Team Automobile Policy
Key Business Executives are responsible for:
A. Assigning take home vehicles to appropriate City employees;
B. Monitoring vehicle usage;
C. Ensuring compliance with the provisions of this policy; and
D. Providing BSS/EMD with a list of the Vehicles designated as take-home in January of
each year.
3.
During the first week of December each year, the Human Resources Key Business Unit shall
provide to each Key Business Unit a list of employees charged the commuting fee, reporting
commuting usage and/or receiving the fixed plus rate. The report will also be generated and
provided to each Key Business Unit each time the IRS commuting fee changes and will include
the employee’s name, KBU, commuting fee deducted and computed mileage.
Procedures:
1.
Employees Using Non-Exempt City Vehicles for Commuting Purposes
A.
Authorization
1.
A Key Business Executive authorizes an employee to drive a non-exempt City
vehicle for commuting purposes and certifies the City employee’s commuting
mileage by signing the Commuting Usage Authorization form (Exhibit A2).
Commuting mileage is determined by the distance from the employee’s home to
his/her assigned permanent work location.
2.
City employee certifies his/her commuting mileage and authorizes Human
Resources to deduct a weekly amount based on the commuting mileage and
approved cents-per-mile rate by signing the Commuting Usage Authorization
form.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
B.
C.
BSS 16
Page
12
of
19
3.
The Commuting Usage Authorization form is sent to the Payroll Section of the
Human Resources Key Business Unit after it has been completed and
appropriately signed.
4.
Changes in the commuting mileage or cancellation of the deduction require a
new Commuting Usage Authorization form to be completed and executed.
Employees are required to promptly notify management when a change occurs in
their daily commuting mileage.
Reporting
1.
Employees report quarterly their usage of vehicles by completing the Commuting
Usage Quarterly Report form (Exhibit 3). Employees check the days on which
they drive the non-exempt City vehicle to and from work. A special notation
(OC) should be marked on days an employee drives and is in an “On Call Pay
Status”. Commuting fee is not charged for days marked OC.
2.
The Commuting Usage Quarterly Report form is sent to Payroll Section of the
Human Resources Key Business Unit after it has been completed and
appropriately signed.
Calculation
1.
A deduction established by the authorization form shall be withheld weekly from
the employee’s pay.
2.
A refund will be made to the employee if the amount deducted exceeds the
computed amount of usage.
3.
Even though the City is charging for use of the vehicle, IRS still requires the
daily imputed value of $3.00* (round trip) less the amount charged per day by
the City to be applied to the employee’s Federal, State and FICA taxable wages.
FICA taxes will be withheld from the imputed value applied to the employee’s
earnings record. Federal and State taxes will not be withheld.
Please see Exhibit A1, Current Rates
4.
Following are two scenarios which describe the calculation performed by
Payroll.
Scenario 1
Round trip commuting miles
10
Cents / mile rate
.24
Days in quarter deducted
63
Days in quarter used
60
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
13
of
19
Amount deducted by Payroll system.
10 x .24 x 63 = $151.20
Amount to refund employee.
10 x .24 x (63 – 60) = $7.20
IRS imputed value.
($3.00 x 60) - $151.20 + $7.20 = $36.00
Scenario 2
24
Round trip commuting miles
.24
Cents / mile rate
63
Days in quarter deducted
60
Days in quarter used
Amount deducted by Payroll system.
24 x .24 x 63 = $362.88
Amount to refund to employee.
24 x .24 x (63 – 60) = $17.28
IRS imputed value
($3.00 x 60) - $362.88 + $17.28 = ($165.60)
No imputed value since calculation is negative.
D.
Passengers
1.
2.
Employees commuting in non-exempt City vehicles as passengers are not
charged for commuting miles. However, they must complete the Commuting
Usage Quarterly Report form, since the IRS requires an imputed value of $3.00
(round trip) per day to be applied against their earnings record. FICA taxes will
be withheld.
Employees Receiving City’s per Mile Flat Rate
A.
Authorization
1.
Key Business Executive approval is required for an employee to
use his/her personal vehicle for business purposes by signing the
monthly Business Mileage Report form (Exhibit 6). This form
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
14
of
19
enables the employee to request reimbursement at the City’s per
mile flat rate for business miles driven during the month.
Reimbursement of Fire Key Business Time Out Mileage is
excluded from this procedure.
B.
C.
Reporting
1.
Employees report their monthly business miles driven by
completing the Business Mileage Report form. Employees report
only their beginning mileage and ending mileage on the
appropriate date. Enough space is allotted for each day to allow
for multiple entries.
2.
The form is sent to the Accounts Payable Section of the Finance
Key Business Unit after it has been completed and appropriately
signed by the employee and the Key Business Executive or
his/her Designee.
Calculation
1.
A payment is issued monthly to the employee through an
accounts payable check. The payment is based on the City’s per
mile flat rate and the number of driven business miles reported
by the employee.
2.
After preparation, the accounts payable check is mailed to the
employee’s home address.
Forms and Exhibits: (Forms are located in the Policies and procedures Handbook behind BSS2)
Exhibit 1 – Rates for Fees and Reimbursement for Vehicle Usage
Exhibit 2 – Non-Exempt City Vehicle Commuting Usage Authorization Form
Exhibit 3 – Non-Exempt City Vehicle Commuting Usage – Quarterly Report Form
Exhibit 4 – Employee Personal Vehicle Business Usage Report (Monthly) Form
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
15
of
19
Appendix B - Vehicle and Equipment Acquisition and Replacement
Objective: Provide guidance on replacement of existing Vehicles and Equipment, and the expansion of
the City’s fleet with new Vehicles and Equipment.
Policy: The acquisition of all Vehicles and Equipment purchased by the City of Charlotte shall be
accomplished in accordance with the procedures outlined in this policy. Exceptions to this policy are
Charlotte Area Transit Public Transportation Revenue Vehicles operated/maintained by the Charlotte
Area Transit System’s Rail and Bus Operations Division, and Charlotte-Mecklenburg Police Department
vice undercover vehicles obtained by asset forfeiture.
Procedures: A detailed process for the acquisition of Vehicles and Equipment is contained in a related
process document entitled “Vehicles and Equipment Acquisition Procedures”. This process document is
hereby incorporated into this policy and recommendations for modifications may be referred to the
Manager’s Cabinet from time-to-time by a two-thirds vote of the Fleet Management Advisory Team.
General procedures associated with this policy are:
1. Non-Capital Purchases: Vehicles purchased with other than capital funds shall comply with this
policy and the Vehicles and Equipment Acquisition Procedures and must be included on the
Vehicle and Equipment Acquisition List.
2. Vehicle and Equipment Procurement Point of Contact: The KBU Asset Coordinator will
serve as the business unit’s Vehicle and Equipment Acquisition Point of Contact to directly
interface with BSS on Vehicle and Equipment acquisition issues for the entire KBU.
3. Vehicle and Equipment Acquisition List: The Vehicle and Equipment Acquisition List shall
indicate all Vehicles and Equipment available for replacement or new purchase anticipated for
KBU operations. The Budget & Evaluation Key Business Unit (B&E) shall publish and keep
current the approved version of the Vehicle and Equipment Acquisition List and make it readily
available to all business units.
4. Change in Capital Outlay:
A. Any request to make a change in capital outlay which affects the current Vehicle and
Equipment Acquisition List for Vehicles or Equipment must be completed by the
requesting Key Business Unit and submitted to the BSS/EMD Division Manager no later
than three months prior to the end of the current fiscal year. A business case supporting
the requested change must be included and must adequately explain the business reasons
for the request.
B. BSS/EMD will send a recommendation to accept, reject or modify the change in capital
outlay request to B&E with copy to the requesting KBU Asset Coordinator. The decision
to approve or deny a request for a change in capital outlay shall be made in B&E.
C. B&E will notify the requesting KBU Asset Coordinator, BSS/EMD Division Manager,
and the BSS Procurement Services Division (PSD) Manager of the final disposition of
the Change of Capital Outlay. If the request is approved, B&E will update the Vehicle
and Equipment Acquisition List for the fiscal year impacted to reflect Vehicles or
Equipment removed from or added to the current Vehicle and Equipment Acquisition
List.
D. Vehicles and Equipment removed from the Vehicle and Equipment Acquisition List
because of a change in capital outlay will be eligible for consideration for replacement in
the next fiscal year.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
16
of
19
5. Additions to the Vehicle and Equipment Acquisition List: Unplanned procurements of
Vehicles or Equipment during a fiscal year must be added to the VAL.
A. Requests for additions to the VAL must be completed by the requesting Key Business
Unit and submitted to B&E. The request will include a use justification, EMD approved
specification, and funding source.
B. B&E will notify the requesting KBU Asset Coordinator, BSS/EMD Division Manager,
and the BSS Procurement Services Division (PSD) Manager of the final disposition of
the request for VAL addition. If the request is approved, B&E will update the Vehicle
and Equipment Acquisition List for the fiscal year impacted to reflect Vehicles or
Equipment removed from or added to the current Vehicle and Equipment Acquisition
List.
6. Purchase Orders: All Vehicles and Equipment must be obtained by BSS/PSD on a purchase
order using specifications approved by BSS/EMD. All Vehicles and Equipment not covered by a
current City contract must be obtained utilizing a method of procurement approved and
administered and/or monitored by BSS/PSD.
7. Specifications: Specifications shall be developed in accordance with paragraph 4 (Asset
Management), subparagraph A (Purchasing of Assets) of the Vehicle and Motorized Equipment
Asset Management Policy. Whenever possible standard configurations of Vehicles and
Equipment will be utilized to meet the needs of multiple KBUs. BSS/EMD will be responsible
for standardizing the City’s fleet to the greatest extent possible.
All options and add-ons to the Vehicle or Equipment must be identified to the extent possible
when the KBU is reviewing the Replacement List before submission to B&E.
All options and add-ons to the Vehicle or Equipment must be identified in total before the
Vehicle is purchased with no exceptions. If practical, the add-ons will be included in the base
Vehicle or Equipment specifications for turnkey delivery from the manufacturer. If the add-ons
will not be provided with the original purchase, the total cost of the add-on will be determined
before the purchase is made and all add-ons after the original purchase must be coordinated by
BSS/EMD.
8. Contact with Vendors: After specifications have been finalized with BSS/EMD and a purchase
order has been created and given to the vendor by BSS/PSD, contact with the vendor will be
coordinated with BSS staff. No modifications shall be made to any Vehicle or Equipment
purchase order that is not documented with a formal written change to the specifications and
purchase order by BSS staff. If a change is required after the order is placed with the vendor, the
change must come in writing through BSS/EMD to BSS/PSD for communication with the vendor
by issuing a revised purchase order.
9. Asset Disposal: BSS/EMD shall not issue replacement Vehicles or Equipment to Key Business
Units until the designated Vehicle or Equipment being replaced on the Vehicle and Equipment
Acquisition List is turned in to BSS/EMD for decommissioning and asset disposal.
10. Fleet Management Information System Replacement Report: BSS/EMD will issue a Fleet
Management Information System Replacement Report for review by each KBU in July of each
year using data in the FMIS as the basis for determining Vehicles and Equipment appropriate for
replacement. The Fleet Management Information System Replacement Report must be finalized
in February of the following calendar year for review by B&E. Any KBU that does not utilize
BSS/EMD to perform or coordinate repairs and maintenance must provide adequate information
as determined by BSS/EMD about current vehicle maintenance costs so that the FMIS
information for these Vehicles and Equipment can be kept up-to-date.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
17
of
19
11. Underutilized Vehicles:
A. BSS-EMD will provide each KBU Asset Coordinator a listing of underutilized Vehicles
and Equipment in association with the annual Fleet Management Information System
Replacement Report.
B. KBUs will have sixty (60) calendar days to review the underutilized assets report after
receipt and develop a recommendation for each Asset listed on the report to submit to
B&E. A copy of the recommendation(s) will be provided to BSS/EMD.
i. If the KBU recommendation to B&E is to retain the Asset, that recommendation
must be justified with a business case accompanying the recommendation.
ii. If the recommendation is to dispose of the Asset, the KBU may do this at any
point during the current fiscal year. The KBU Asset Coordinator will notify the
BSS/EMD Division Manager and schedule a time to turn in the Vehicle or
Equipment for decommissioning.
C. Underutilized Assets recommended for disposal may be assigned to another KBU in
which there is a demonstrated need. KBUs that have a need for the Asset will work with
BSS/EMD in developing a business case for submittal to B&E for consideration. If the
transfer is approved by B&E, BSS/EMD will transfer the Asset to the new KBU in the
FMIS.
Responsibilities and References:
1. Business Support Services Equipment Management Division will:
A. Produce a list of Vehicles and Equipment recommended for replacement based on FMIS
data, for each KBU comprised at a minimum, of the fields listed and methodology
described in the current Vehicle and Equipment Acquisition Procedures;
B. Create and maintain current Vehicle and Equipment specifications;
C. Commission and decommission Vehicles and Equipment;
D. Collaborate with BSS/PSD, B&E, and each KBU to resolve discrepancies in the FMIS
replacement report;
E. Collaborate with BSS/PSD and each KBU to set best estimates on pricing for new
Vehicles and Equipment on the Vehicle and Equipment Acquisition List for submission
to B&E;
F. Maintain up-to-date maintenance and repair cost information about the City’s Assets in
the FMIS using all available data;
G. Produce an annual report of underutilized Vehicles and Equipment to each KBU Asset
Coordinator along with the FMIS replacement list; and
H. Utilize the Vehicle and Equipment Acquisition List to develop specifications in advance
of specific requests from KBUs.
2. Key Business Executives (KBE) will ensure the review of the underutilized Vehicle and
Equipment list from BSS/EMD and the submission of recommended disposition within the
required timeframe.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
18
of
19
3. Key Business Unit Asset Coordinator will:
A. Facilitate KBU prioritization of Vehicles and Equipment for replacement and
replacement timeframes;
B. Be the single point-of-contact for BSS/EMD and BSS/PSD for communications related to
Vehicle procurement and specifications;
C. Be the single point-of-contact for stakeholders within the KBU for questions about
Vehicle or Equipment acquisition or the disposal process for Vehicles or Equipment;
D. Coordinate the development and approval of specifications before creating a requisition
for purchase; and
E. Act as a facilitator for acceptance of Vehicles and Equipment by the KBU.
4. Budget and Evaluation KBU will:
A. Create and accurately maintain the Capital Replacement List;
B. Review and take action on all Change in Capital Outlay (CICO) requests;
C. Communicate all Change in Capital Outlay approvals to BSS/PSD, BSS/EMD and the
requesting KBU; and,
D. Review and take action on all disposition recommendations for underutilized Assets.
Definitions:
1. Vehicle: A Vehicle refers to any form of motorized transportation authorized to operate on public
roadways.
2. Equipment: Equipment refers to all motorized forms of off-road machinery regardless of engine
type, method of transport, or size. Equipment also includes trailers, sprayers or other nonmotorized equipment that will be towed by City Vehicles on public roads or maintained by
Business Support Services Equipment Management Division.
3. Fleet Management Information System Replacement Report: Report distributed in July of
each year by Business Support Services Equipment Management Division utilizing data from the
FMIS to identify Vehicles and Equipment eligible for replacement during the next fiscal year.
The report is based on Vehicle and Equipment class, and a point value is associated with age,
mileage, and maintenance cost. This report will be used as a baseline for BSS/EMD and KBUs to
evaluate Vehicles and Equipment for replacement during the next fiscal year.
4. Vehicle and Equipment Acquisition List (VAL): refers to the listing of Vehicles and
Equipment maintained by Budget and Evaluation Key Business Unit denoting the approved and
budgeted Vehicles and Equipment that are scheduled for acquisition in the current fiscal year.
Subject/Title
Fleet & Motorized Equipment Asset Management
Code Number
BSS 16
Page
19
of
19