1. City of Houston Fleet Management Department 1

2. Business Division Fleet Management Department 321 FTE27 FTE Operations Division Director’s Office 2 FTE Table of Organization Business Management Financial Management Asset Management Fuel Management Parts Vendor Management Data Management Operations Management Vehicle Maintenance City Motor Pool Outside Services Department Management Emergency Management 350 FTEs 2

3. Organization Update Status of structuring the department – Position interviews will be complete by March 11 – 256 mechanics are directly supported by 65 FTEs – 3.9:1 ratio of mechanics to support staff – Maintenance & Fuel are our two main core services – 97% of the operating budget support these services 3

4. Fuel Program Update In 2010, the City managed 99 fuel sites 29 sites have been closed Of the 70 sites that are currently open, – 11 more sites have been identified for closure – 17 additional sites are under evaluation Note None of the City’s designated 32 emergency management fuel sites are being closed 4

5. Parts Turnover Update NAPA Parts Project is underway – Fire Parts Room turnover will occur March 21 – Police Parts Room turnover is scheduled for April 8 – SWD Parts Room turnover is scheduled for May 8 – Possible return of 10-15% higher than expected 5

6. Revenue & Savings Update 6 FY11FY12 RevenueCost SavingsRevenueCost SavingsNotes Fuel Program$0$78,918$0$189,404 Parts Project$1,710,000$0 possible 10-15% higher Maintenance Facilities$0$164,761$0$394,929 Take-Home Vehicles$215,306$410,228$2,119,936$496,860 Personnel Consolidation$0 Vehicle Reductions$188,806$97,666$0$207,73092 additional vehicles $2,114,112$751,573$2,119,936$1,288,923 FY11 and FY12 Revenue and Cost Savings = $6,274,544 Savings TBD

7. Best Practices Implement a quality information system (complete) Outsource supply chain management (in progress) Establish motor pools (in progress) Right-size the City’s fleet Establish life-cycles for vehicles and equipment Develop a vehicle capital replacement plan Implement environmental practices Standardization (vehicles and policies) 7

8. Standardization - Policy Recap (retread) tires are proven both safe and good for the environment (15 gal oil less/less scraps). SWD has recapped truck tires for many years. Other departments buy new at $401 per tire. Cost for a recap tire is $85.00. Last two years PWE used 2,714 new tires. Recap vs. new tires difference = $857,624 8