Commercial in confidence Regional Collaboration – Fleet Management Project Progress Summary Duncan Kinnaird Project Lead

Commercial in confidence Background LGV Internal Audit delivered in June 2012 –Principle objective to review and assessed overall policies and framework of fleet management –Additional internal audit objectives –Report included 21 recommendations targeted at the participating councils and identified 12 opportunities for collaboration RCV issued RFQ January 2013 Project commenced February 2013 Page 2

Commercial in confidence Objectives Strengthen the knowledge, skills, relationships and tools of the participating councils to progress regional collaborative efforts in fleet management leading towards cost savings and productivity increases Develop a framework, model and tools that can be replicated by other Victorian rural councils to undertake effective regional fleet management practices Provide a set of recommendations for further initiatives to build the capacity of rural councils in regional collaborative efforts. Page 3.##

Commercial in confidence Approach & Methodology 3 Stage project –Stage 1 – Interim Outcome, build of the Roadmap – a plan to implement identified and greed collaboration outcomes (target June/July 2013) –Stage 2 – Implementation of the Roadmap (target April 2014) –Stage 3 – Toolkit of principles, process, procedures and templates for collaborative fleet management (target June 2014) Page 4

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Commercial in confidence Approach & Methodology Stage 1 –Participating Council Questionnaire (completed) –Individual visits to participating councils (Completed) –Workshop 1 (May 2013) with Working Group from participating councils –Workshop 2 (June 2013) with Working Group from participating councils Page 6

Commercial in confidence Observations to Date Nominal collaboration already exists The 12 opportunities have merit but only when examined in isolation, currently they lack the context of the integrated operating environment of the councils, e.g. work prioritisation, budget or resource constraints There is a gap between councils with regard to practices, service levels, maturity of fleet management, and procurement options and skills The fleet and its management delivered no direct outcome for the council, the fleet supported or enabled outcomes in the terms of service or works delivery Page 7

Commercial in confidence Current Position Interim views of the Landell project team:- maximising financial and productivity benefits for the collaboration in fleet management needs to start with information sharing at the service/works delivery – i.e. the works planning, delivery and equipment scheduling. Having a common view on the planning information will provide the information necessary to: –identify (with qualification) the driving factors of the heavy fleet’s use –enable real opportunities, qualified by the context of the work plan demands, to be identified and implemented Page 8.##

Commercial in confidence Next steps Project team to present findings and interim views to Working Group for validation and refinement. Solution concept:- –Landell to coordinate the sharing of the work plans – to create a common view –Identify processes and practices could be subject to immediate standardisation Solution target:- –Shared view confirms and qualifies opportunities that can be costed and presented to Councils Project bears cost and impact of creating the common view – no immediate impact on the participating councils Page 9.##