Things Every CFO & CPO Should Know About Managing Fleet Office of Management and Enterprise Fleet Management Sep 23, 2015

Introduction 2 1.Fleet Use Scenarios-Assessment 2.Vehicle Owning Agencies Contracts 3.Rental, Trip Calculator/Optimizer, Mileage Reimbursement 4.Fleet Management Services 5.Fleet Policies and Processes 6.Driver Behavior 7.Trends & Initiatives

1. Fleet Use Scenarios-Assessment Are you an agency that – Owns vehicles – Leases vehicles – Rents vehicles – Provides mileage reimbursement – Applies combination of any or all listed above – Has nothing to do with travel 3

2. Fleet Owning Agencies (1/7) 1.Vehicle Acquisition o Confirm Authority i.e. 47 O.S. §156 A. 23. o BEFORE >10,000 pounds and less (47 O.S. §156.3) o Vehicle Acquisition Request (DCAM-Form-FM-016) o Unauthorized PO o Detailed Quote from a dealer o AFTER (All vehicles) o Vehicle Inventory Data Sheet (DCAM-Form-FM-017) 4

2. Fleet Owning Agencies (2/7) 1.(cont.) o Reasons and Conditions o Project Revenues and Expenditures o Conduct Mission Analysis; Consider Vehicle Downsizing o Pursue Alternative Fuel Replacement Targets (State and Federal) o Sources o Buying new through SW035 and SW035C, Mandatory (M) o Buying new outside SW035 o Buying used from Federal or State Surplus, or state agencies 5

2. Fleet Owning Agencies (3/7) 2.Vehicle Maintenance (Service and Parts) o Servicing at own garage o Servicing at Fleet Management o Servicing through SW767, non-Mandatory (nM) o Getting parts through SW307 (nM), & tires through SW024 (M) o Servicing and getting parts outside OK contracts and Fleet Management 6

2. Fleet Owning Agencies (4/7) 3.Fueling Vehicles and Paying for Fleet Services o Fleet Card, SW101 (M) o Remembering about Sales Tax Exemption o Using Level 3 sites for Data and Federal Fuel Tax Exemption o Requires PIN o FMD Customers only get PIN through FMD o Agencies authorized to own get PIN from the vendor and notify FMD 7

2. Fleet Owning Agencies (5/7) 4. Vehicle Disposal o Disposal conditions (74 O.S. §78b) o 2 years or older o 60,000 miles or more o Repairs needed exceed $2,500 o DCAM-Form-SS-001V must be submitted to Fleet first o Selling vehicles through State Surplus o Selling vehicle through own auctions or sale events 8

2. Fleet Owning Agencies (6/7) 5. Vehicle Disposal (cont.) o Oklahoma: o Fleet Management: 120,000 miles o Dept. of Transportation: 175,000 o Dept. Public Safety: 115,000 – 170,000 o Other States o Utah: 105,000 miles (min 2 years, max 12 years) o Oregon: 115,000 (3 years) – 140,000 (8years) o Georgia: 135,000 miles o Illinois: 150,000 miles 9

2. Fleet Owning Agencies (7/7) 6. Mandatory Reporting o Federal o Energy Policy Act (EPAct) - Acquiring Alternative Fuel Vehicles (CNG, LPG, E-85/FFV) o EIA-886, Annual Survey of Alternative Fueled Vehicles o State of Oklahoma o Form Vehicle Acquisition Request o Form Fleet Inventory Report o Monthly reporting o MMR – leasing customers o MFR – owning agencies o Form 001V - Surplus Vehicle Transfers More at:

3. Vehicle Rental State Rental : o Fleet Management: fixed rate plus mileage after 80 miles NEW: online reservations: o OU: fixed rate plus fuel o OSU: fixed rate plus mileage Vendor Rental : o vendors on SW771 (nM): fixed rate plus fuel (insurance incl.) o vendors outside on SW771: fixed rate plus fuel (insurance n-incl.) o Note: no 6% rental sales tax on state rentals from private vendors 11

3. Mileage Reimbursement Mileage Reimbursement (74 O.S. §85.45k) o Current IRS rate $0.575 (74 O.S. §500.2) o Fleet Management Calculator / Trip Optimizer (74 O.S. §85.45l) o Over 100 miles per day o Any way appropriated agencies o Smallest vehicle for travel needed 12

4. Leasing Vehicles Lease Rates: o Include: maintenance, road assistance, insurance, loaner (OKC) o Do not include: fuel, pike & deductible o Utilization monitored continuously o Pricing established at beginning of new lease o Pricing may be revised at each Fiscal Year o Rate based on vehicle class and year, i.e Ford Focus: U o Base lease rate fixed: $374 o Mileage over 1,000 miles per month: $0.19 per mile 13

5. Statutory Requirements (1/4) 1.Reporting (74 O.S. §110.3.) o Vehicle Monthly Meter and Cost o - Leasing agencies monthly reporting o - Owning agencies monthly reporting o Acquisition and Sale o Inventory 2.Utilization o Minimum 12,000 miles per year / 1,000 miles per month (74 O.S. §78. C. 8.) 3.Vehicle Marking o Conspicuous lettering stating (47 O.S. §151) o “State of Oklahoma” o the name of the department or institution; o unit # highly recommended o Confidential vehicles, exemptions (74 O.S. §78. D.5.) o On an agency letterhead to Fleet Manager o Employee name and Unit # o Reason clearly stated and relate to employee job mission 14

5. Statutory Requirements (2/4) 4.Work from Home; Driving Vehicle Home o Agency Authorization for Commuting in State Vehicle, (022) o 47 O.S. §156.1 o Only essential employees approved by Governor (and others) in the performance of their official duties o Employee who regularly receives after hours emergency calls (75 miles limit round trip, and authorization to be reviewed every 60 days) o Listed law enforcement and some other agencies o 2007 OK AG 18 o Employee's assigned place of employment is his/her residence and use of a state vehicle is necessary in the performance of the employee's official duty. 15

5. Statutory Requirements (3/4) 5.Insurance o Liability [See 51 O.S. § 154(A)] o General Liability provided by agency standard liability coverage through Risk Management - mandatory o Motor Vehicle Liability through Risk Management – mandatory for Agencies with state employees driving vehicles o Vehicle Physical Damage - elective: o deductible $2,500 for vehicles up to $50,000; $5,000 over $50,000 o Note: Does not apply to personal vehicles use on state business 16

5. Statutory Requirements (4/4) 5.Insurance – cont. o Primary Authorized Users / Drivers o Risk Management’s Auto Liability Program provides insurance coverage to state employees while in the Scope of Employment only; (it does not cover any individual failing to meet the definition of an employee under Oklahoma Governmental Tort Claims Act. [Refer to the following: 51 O.S. 151 et seq.; 51 O.S. § 152 (7); 51 O.S. § 152 (12); 51 O.S (A) and (B); 51 O.S. 153 (A) and (B); 51 O.S. § 155, specifically exemption 18 related to contractors*.]) o Contractors o Business visitors covered by their own workers comp o Galt Foundation temporary employees may drive Oklahoma State vehicles, provided the temporary employee is contracted through SW800/PS# 1862 with Galt Foundation. More at 17

5. Fleet Processes Leasing Agencies o Roadside Assistance (A001) (Lease only) o Accidents and Incidents (A002) o Fleet Management Calculator / Trip Optimizer (D001) o Fleet Card (F001) o Preventive Maintenance Services for State-Owned Vehicles (G001) o Non-Reporting Automatic Vehicle Location (AVL ) Units G002 o Monthly Lease (L001) o Monthly Meter Reading (MMR) (L002) o Vehicle Sharing - Creating Reservations (L003) Universal o CNG Vehicle Self-Service Fueling (F002) Owning Agencies o Owning Agencies Vehicle Management (V001) 18

6. Driver Behavior Policies - Driver Responsibility Certification (015C) o Smoking, texting, driving under influence o Fueling and Fleet Purchases o Suspended DL o Damages Technology – Automatic Vehicle Location o Vehicle Codes o Speeding o Idling Defensive Driving Class o Usually 6-hour one day class, $30-$50 per person o Must be taken within 6 months from the caused accident (OAC 580: (3)) 19

7. Initiatives Fleet Inventory o Transparency (2012 HB2647) o Fleet System (M5) Expansion o Owning Agencies o Leasing Agencies Texting while driving o HB1965: Act Relating to Texting while Driving (effective Nov 1, 2015) CNG o NASPO MOU & SW035C o CNG fill sites: 85 20

Questions Office of Management and Enterprise Services Division of Capital Assets Management Fleet Management 317 NE 31st Street, Suite A Oklahoma City, OK Phone: (405) Fax: (405)