BOROUGH OF POOLE
RESOURCES OVERVIEW GROUP – THURSDAY 30 SEPTEMBER 2004
REPORT OF HEAD OF TRANSPORTATION SERVICES
ON THE PROPOSED CORPORATE POLICY FOR PROCUREMENT,
MANAGEMENT AND MAINTENANCE OF THE COUNCIL’S VEHICLE FLEET
PART OF PUBLISHED FORWARD PLAN: NO
STATUS – OPERATIONAL POLICY
1.
Purpose and Policy Context
1.1 To consider a draft corporate policy (appended) for the procurement,
management and maintenance of the Council’s 211 vehicle fleet, 110 of which
are provided by MHS.
1.2 The policy is intended to offer Service Units clarification on the procedures to
be followed when purchasing/leasing and disposing of vehicles. It covers the
“whole life” of vehicles and also puts into context the MHS contract, which
commenced on 1 January 2002.
1.3 The need for a policy was identified in the Fundamental Performance Review
(FPR) of fleet transport management undertaken in 2000/01.
2.
Decision Required
(a) To support the principle of a Corporate Policy for procurement,
management and maintenance of the Council’s vehicle fleet being adopted
by the Council;
(b) To approve the draft attached to this Report with such amendments as the
Committee may wish to see incorporated at this stage as a basis for
consultation;
(c) Determine an appropriate timescale for the consultation exercise and for
the Resources Overview Group to consider any revisions to the draft policy
in view of comments received, and;
(d) Subject to any revisions to the draft policy being of a relatively minor nature
the Portfolio Holder for Resources Areas be asked to agree the adoption of
the policy.
3.
Background
3.1 A Fundamental Performance Review of Transport was undertaken during
2000/01. The Action Plan of the final report of the FPR recommended:

That a corporate policy on vehicle procurement, policy management and
maintenance be established.
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3.2 The draft policy set out in Appendix A has been prepared in consultation with
the Corporate Procurement team and the Insurance and Risk Manager.
JAMES T BRIGHT
Head of Transportation Services
Background Papers
Fundamental Performance Review of Transport 2000/01
APPENDIX A – Draft Corporate Policy for Procurement, Management and
Maintenance of the Council’s Vehicle Fleet
Name and Telephone Number of Officer Contact
Elaine Buckley (01202) 262001
15 September 2004
ROG
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APPENDIX A
BOROUGH OF POOLE
CORPORATE POLICY FOR PROCUREMENT, MANAGEMENT AND
MAINTENANCE OF THE COUNCIL’S VEHICLE FLEET
1
Introduction
1.1
During 2000/01 a Fundamental Performance Review (FPR) of the
procurement of vehicles and the management and maintenance of the fleet
was undertaken. The Action Plan resulting from the FPR highlighted the
need for a corporate policy for the Council’s vehicle fleet. This policy is
intended to cover the “whole life” of the vehicles from procurement to
management, maintenance and disposal.
1.2
This policy is intended to offer Service Units clarification in the procedures to
be followed when purchasing/leasing and disposing of vehicles. It also puts
into context the MHS contract, which started on 1 January 2002.
2.
The Operators Licence
2.1
Under the Goods Vehicles (Licensing of Operators) Act 1995 there is a
requirement for a qualified person, the Transport Officer, to be responsible for
the Council’s compliance with the Operators Licence (known as the O
licence). This person is responsible for ensuring that the vehicles and drivers
comply with all aspects of the legislation.
2.2
All vehicles over 3.5 tonnes gross plated weight (gpw) and all semi-trailers,
which exceed 1.525 tonnes unladen weight, have to be registered on the O
licence.
2.3
The Borough of Poole has two sites covered by the O licence - Hatch Pond
and the Nuffield Recycling Centre. Within the terms of the licence they are
listed as “The Operating Centres”. Each Operating centre is licensed for a
defined number of vehicles and they are normally expected to be parked at
the centre when not in use. The licence held is a “Standard National Licence”
which allows the Council to deliver or collect its own goods at home or
abroad, and to carry a third party’s goods for hire or reward in the United
Kingdom, ie. National Haulage.
2.4
With few exceptions all vehicles over 3.5 tonnes gpw have to comply with the
conditions of the licence, failure to do so can result in the O licence being
revoked or curtailed, and having vehicles impounded and fines imposed. Any
infringement could result in the Council being unable to meet its statutory
obligations such as refuse collection and highway maintenance.
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2.5
All Service Units operating vehicles, which are O licenced, must adhere
strictly to the regulations that are in force at that time. These currently
include:- ensuring that the vehicle safety inspections are carried out by the
maintenance contractor (MHS) at the intervals stated on the Licence; that
drivers daily vehicle checks are carried out before use; having a formal
documented system of defect reporting and compliance with and monitoring
of the requirements of drivers hours regulations.
2.6
All vehicles registered on the O licence must be parked either at the Hatch
Pond or Nuffield Operating Centre. They must not be kept anywhere else,
unless for a short period (ie. one night). The Transport Officer should be
made aware of any vehicle that will not be kept on site.
3.
MHS Contract
3.1
The Transport contract with MHS started on 1 January 2002 and is for a 15
year period. Under the terms of the contract MHS operate from the
Workshop at Hatch Pond Depot. The contract covers a range of options for
vehicle management and maintenance including Full Contract Hire, Fixed
Price Maintenance and ad hoc servicing. All servicing of vehicles covered by
the contract is carried out at Hatch Pond.
3.2
When considering any Long Term Hire of vehicles, Units must consult the
Transport Officer before procurement as MHS has a contractual right to
provide an agreed proportion of the Borough’s fleet. However, MHS generally
specialise in the provision of commercial vehicles and as yet have not
expressed interest in providing Long Term Hire Cars to the Council.
Nevertheless, they are contractually entitled to do so and should always be
offered that option.
3.3
Should MHS not wish to take up this option, the Transport Officer will provide
help and guidance in the procurement process. A pro forma which will help
assess options to maximise budgetary and operating benefits is available for
completion by Units considering Long Term Hire.
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Corporate Procurement
4.1
Long Term Hire Vehicles
4.1.1 Units considering a Long Term hire vehicle (over 3 days) should contact the
Transport Officer for advise as to the most appropriate vehicles for their
needs. Advice will be given on prices, (including whole life costs) alternative
fuels etc., when required.
4.2
Short Term Hire Vehicles
4.2.1 Corporate Procurement Services have contracts in place for the provision of
short term hire (up to 3 days) of cars and small vans. Cars are provided by
Vauxhall Rental and the small vans from U-Drive. When on hire and operated
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on Council business, these vehicles are covered by the Council’s insurance
policy.
4.2.2 Should the term of hire exceed three days Corporate Procurement Services
must be notified. A best practice guide is available on Loop2. The guide
includes the hire charges and all other relevant information required.
4.3
Branding/Livery of New Commercial Vehicles
4.3.1 All new commercial vehicles will be supplied white and branded in accordance
in the Borough of Poole style incorporating the Dolphin logo. MHS require
their own logo to be incorporated in the livery of all vehicles they supply. All
additional branding issues should be referred to Marketing Services. MHS will
be responsible for the provision of branding all new vehicles.
4.3.2 The Best Value Review of Public Information Action Plan supports the Head
of Marketing in co-ordinating 'corporate messages' across the fleet and the
recently introduced Mission Statement 'Striving for Excellence' is a current
example of how Marketing Services may wish to develop branding on fleet
vehicles.
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Management
5.1
Operators Licence
5.1.1 Any Unit wishing to purchase or hire a vehicle which over 3.5 tonnes gpw
must consult the Transport Officer beforehand to ensure compliance with the
O licence. The O licence in force at that time might not have sufficient
“margin” to register that extra vehicle and therefore an application must be
made to the Traffic Commissioner to increase the O Licence entitlement. This
can take up to nine weeks and will involve an extra licence charge.
5.1.2 Vehicles registered are issued a Standard National (Blue) Disc. The vehicle
must display this disc at all times, on or adjacent to the near side lower corner
of the windscreen. The disc should have a valid date and show the vehicle
registration number, and discs are not interchangeable between vehicles.
5.1.3 Units off hiring vehicles must return the blue disc to the Transport Officer.
The Transport Officer is responsible for all blue discs and will return them to
the Traffic Commissioner.
5.1.4 All drivers of vehicles over 3.5 tonnes must obey the relevant drivers hours
legislation. This is applicable whether driving or carrying out other work
connected with their duties. Guidance on the applicable legislation can be
obtained from the Transport Officer.
5.1.5 All drivers are legally responsible for the safety of the vehicle they are driving,
therefore it is a legal requirement for drivers of vehicles registered on the O
Licence to carry out a “daily vehicle check “ and to report in writing any
defects immediately to either their line manager or MHS. Likewise, defects
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which occur during the operation of the vehicle, must be reported in the same
manner. A copy of the relevant form can be obtained from the Transport
Officer.
5.1.6 Vehicles must be presented promptly to MHS when scheduled, for safety
inspections and servicing. They must be presented in a clean and tidy
condition.
5.2
“Smart” Cars Operated By Marketing Services
5.2.1 The Council has four “SMART” cars based at the Civic Centre. These are
managed by Marketing Services. The rules for the hire of these vehicles can
be obtained from Loop 2.
5.2.2 The 3 year contract for these vehicles terminates on March 31st 2005 and
Marketing Services have indicated that they do not anticipate continuing the
lead role. Their involvement was led by the promotional opportunity for
BoroughofPoole.com and the effectiveness in that respect has been
achieved.
5.3
Poole Cars Operated by other Units
5.3.1 Units considering leasing vehicles to use as Pool Cars should consult the
Transport Officer on the range of options available and the guidelines for the
operation of them.
5.4
Demonstration Vehicles
5.4.1 Units wishing to assess a vehicle prior to purchasing, should contact the
Transport Officer who will arrange for a demonstration vehicle to be made
available to the Unit. These vehicles are subject to the same guidelines as
normal Pool Cars.
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Maintenance
6.1
Servicing
6.1.1 All vehicle servicing should be carried out according to manufacturer’s
specifications and intervals based on time and/or mileage. All LGV’s and
coaches will be inspected in line with O licence requirements. Low mileage
non-LGV’s must receive a 6 month safety check.
6.1.2 The downtime for LGV preparation and DOT testing for vehicles over 3.5
tonne gpw is 3 working days.
6.1.3 Vehicles should be presented for the scheduled servicing at either the MHS
workshop or the manufacturers garage by the agreed time on the day of the
service, and must be presented in a clean and tidy condition.
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6.2
Vehicle Breakdowns
6.2.1 Vehicles supplied by MHS are covered by the company’s own breakdown
service and are supported by various national companies for tyres and
windscreens. Details are available from MHS or the Transport Officer.
6.2.2 All other vehicles are covered by separate arrangements, and details of
breakdown cover and instructions for the driver in case of breakdown should
be displayed either in the handbook or on the back of the tax disc holder.
6.3
Tyres
6.3.1 No vehicle should be driven if any tyre is worn beyond the legal limit or is
damaged to a degree which makes it illegal. It should be reported as soon as
detected to the supplier of the defective tyre. Details of the tyre supplier can
be found on the rear of the tax disc or in the vehicle handbook. If any tyre
appears to be slightly under inflated, the vehicle should be driven slowly and
very carefully to the nearest garage and the tyre re-inflated to the correct
pressure. If in any doubt advice should be sought from MHS.
6.4
Windscreens
6.4.1 If a windscreen is found to be chipped or other damaged on inspection or it
becomes chipped or damaged whilst being driven then the vehicle should be
defected immediately and repaired as soon as practicable.
6.4.2 Should the damage be directly in the view of the driver and be large enough
to impair his or her forward vision or if the windscreen has shattered then the
vehicle should be reported as a breakdown and should not be driven before it
is repaired. If the windscreen cannot be replaced at the roadside, the vehicle
must be transported by a recovery vehicle to a place where the work can be
carried out.
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Disposal
7.1
Vehicles that are O licenced must not be disposed of without consulting the
Transport Officer. When a vehicle is no longer required by a Unit and is
considered to be beyond economical repair, it will be disposed of by the
Transport Officer.
7.2
The Unit should provide the Transport Officer with the relevant details of the
vehicle i.e. registration number, whether or not it is currently under lease, the
name of the Officer responsible for the vehicle etc., on the appropriate pro
forma which is available from the Transport Officer.
7.3
The vehicle will either be sold by auction and the proceeds of the sale
returned to the Unit or will be disposed of for scrap and any costs of disposal
passed to the Unit concerned.
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Accident Management
8.1
Corporate Insurance Arrangements
8.1.1 When a vehicle is involved in an incident with a third party or third party
property, an incident report must be completed by the driver immediately and
reported to their immediate supervisor. Incident report forms are held by
Transportation Services located at Hatch Pond.
8.1.2 In the event of an incident involving a third party or their property and there is
NO IMPACT DAMAGE to the hired vehicle the Unit should duplicate the
completed incident form once. The hiring Unit should retain a copy and the
original should be faxed and posted to Financial Services Insurance Section
in accordance with the Council’s Standing Orders 14.2.
8.1.3 In the event of an incident involving a third party or their property and there is
IMPACT DAMAGE to the hired vehicle the Unit should duplicate the
completed incident form twice. The hiring Unit should retain a copy, the
second copy should be forwarded to MHS and the original should be faxed
and posted to Financial Services Insurance Section in line with the Council’s
Standing Orders 14.2.
8.1.4 In the event of IMPACT DAMAGE on a hired vehicle being found during
routine maintenance by MHS, which has not been reported as detailed above,
then MHS will notify the appropriate hiring Unit and also Financial Services
Insurance Section of the damage. It is the responsibility of the hiring Unit to
complete an incident report form in all circumstances of vehicle damage in
line with the Council’s Standing Order 14.2.
8.1.5 In the event of NO IMPACT DAMAGE on a hired vehicle but an incident had
been reported to the Council or MHS from a third party relating to damage to
the property or third party injury, which was had not been reported in line with
second or third party injury. Any such reports of an incident should be made in
writing and all correspondence from the third party be forwarded to Financial
Services Insurance Section unanswered. It is also the responsibility for the
hiring Unit to provide a completed incident report form to Financial Services
Insurance Section in line with the Council’s Standing order 14.2.
8.1.6 Transportation Services, Financial Services Insurance Section and MHS shall
arrange appropriate insurance handling procedures to satisfy the Council’s
insurer’s and to minimise repair time to a level acceptable by all parties.
8.1.7 Council employees who drive their own vehicles on Council business must
ensure that they are insured for business travel.
8.2
Insurance Excess Charges
8.2.1 The current insurance policy has an excess charge of £250 per accident.
When a member of staff records an excessive level of vehicle accident
damage, this will be investigated by their Manager and additional driver
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training provided if necessary. In addition, other action may be considered if
appropriate.
8.3
4th EU Motor Insurance Directive
8.3.1 On 1 April 2003 new legislation came into force requiring all vehicles to be
listed on the central Motor Insurance Database (MID). The directive is
designed to improve the claims process for EU third parties claiming against
an insurer based in another EU Member State following an accident outside
their home territory. One of its requirements is that a claimant should be able
to identify the relevant insurer from the registration number of a vehicle.
8.3.2 In order to comply with this new legislation, all vehicles operated by the
Council, including vehicles on hire (if the hire is for more than 2 days), must
be entered on the MID. Failure to enter Council operated vehicles on the MID
can result in fines of up to £5,000 per vehicle. Any fines incurred by the
Council will be passed to the Unit concerned for payment.
8.3.3 It is therefore, imperative that the Transport Officer is notified of all vehicles
on both long term hire and short term hire so that the database is kept up to
date.
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Fuel
9.1
All Star Fuel Cards
9.1.1 The Council currently procures its vehicle fuel through the use of “All Star
Fuel Cards.”
When requested, the Transport Officer will obtain an
appropriate card for fuelling Long-Term hire vehicles. Purchases on these
cards are restricted to fuel only and they are specific to a particular vehicle.
Invoices for fuel purchased on these cards will be directed to the relevant Unit
for settlement.
9.1.2 Alternatively, staff holding a Company Barclaycard may purchase fuel at any
petrol station accepting the credit card.
9.2
Diesel at Hatch Pond
9.2.1 Diesel is available from the fuel pumps at Hatch Pond for the fuelling of Long
Term hire vehicles. This fuel has been purchased in bulk at a competitive
price by Consumer Protection and is less expensive than fuel obtained on
retail forecourts. Units using this facility will be charged by Consumer
Protection on a monthly basis for fuel used.
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Training – Social Services/MIDAS etc
10.1 All drivers of minibuses must undergo appropriate training before driving the
vehicle. This training is available from MIDAS and can be arranged through
the Transport Officer. Copies of the “Minibus Handbook – Code of Good
Practice” are available from the Transport Officer.
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Driver’s Daily Checks
11.1 It is a statutory requirement for drivers of O Licensed vehicles to carry out a
formal daily driver’s check prior to driving. However, all drivers are responsible
under the law for the roadworthiness of any vehicle, whether hired, owned or
a pool car, that they take on the public highway. Unfortunately ignorance of
the law is no excuse and personal prosecution can result from failure to
observe any defect, which a driver should reasonably have seen. e.g. a flat
tyre or broken headlight. A copy of the Drivers Daily Check sheet may be
obtained from the Transport Officer.
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Driving Licence Checks
12.1 All Units operating either Council vehicles or with staff who are in receipt of
either Casual or Essential User Car Allowances should undertake annual
driving licence checks.
12.2 Apart from ensuring that staff are, and remain, legally entitled to drive the
class of vehicle required, it is also good practice. Staff identified as part of
this checking procedure who have endorsements on their licence i.e. penalty
points for speeding or other offences such as careless driving,
reckless/dangerous driving etc., should be offered additional driver training.
The Health & Safety Team based at the Civic Centre can provide assistance
with identifying suitable additional training.
12.3 Staff driving their own vehicles on Council business should also be required to
present their insurance documents for inspection on an annual basis in order
that the Unit can satisfy itself that the member of staff carries adequate
insurance in the event of an accident.
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Consultation
13.1 Committee
13.1.1 This report will be presented to the Resources Overview Group for comment
and approval. It will also be presented to the Council’s Joint Consultative
Committee.
13.2 Service Units
13.2.1 This draft policy has been circulated to all Units in the Council and UNISON
for their comments. Where comments have been received these have been
incorporated in the document.
13.3 MHS
13.3.1 MHS have been consulted about the contents of the policy and their
comments have been duly noted and where relevant to the operation of the
contract, have been incorporated.
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14
Review and Revision
14.1 The policy will be reviewed and revised from time to time to address the
changing transport needs of the Council and the individual needs of the Units.
Any suggestions for revisions and refinements should be passed to the
Transport Officer who will bring them forward to the Resources Overview
Group at the appropriate time.
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