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
- Purpose and Policy Context
- 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.
1.2The 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.
1.3The 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
3.1A 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.
3.2The 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
APPENDIX A
BOROUGH OF POOLE
CORPORATE POLICY FOR PROCUREMENT, MANAGEMENT AND
MAINTENANCE OF THE COUNCIL’S VEHICLE FLEET
1Introduction
1.1During 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.
1.2This 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.
- The Operators Licence
2.1Under 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.
2.2All 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.
2.3The 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.
2.4With 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.
2.5All 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.
2.6All 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.
- MHS Contract
3.1The 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.
3.2When 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.
3.3Should 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.
4CorporateProcurement
4.1Long Term Hire Vehicles
4.1.1Units 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.
4.2Short Term Hire Vehicles
4.2.1Corporate 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 on Council business, these vehicles are covered by the Council’s insurance policy.
4.2.2Should 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.
4.3Branding/Livery of New Commercial Vehicles
4.3.1All 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.
4.3.2The 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.
5Management
5.1Operators Licence
5.1.1Any 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.
5.1.2Vehicles 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.
5.1.3Units 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.
5.1.4All 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.
5.1.5All 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 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.
5.1.6Vehicles 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
5.2.1The 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.
5.2.2The 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.
5.3Poole Cars Operated by other Units
5.3.1Units 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.
5.4Demonstration Vehicles
5.4.1Units 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.
6Maintenance
6.1Servicing
6.1.1All 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.
6.1.2The downtime for LGV preparation and DOT testing for vehicles over 3.5 tonne gpw is 3 working days.
6.1.3Vehicles 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.
6.2Vehicle Breakdowns
6.2.1Vehicles 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.
6.2.2All 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.
6.3Tyres
6.3.1No 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.
6.4Windscreens
6.4.1If 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.
6.4.2Should 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.
7Disposal
7.1Vehicles 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.
7.2The 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.
7.3The 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.
8AccidentManagement
8.1Corporate Insurance Arrangements
8.1.1When 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.
8.1.2In 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.
8.1.3In 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.
8.1.4In 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.
8.1.5In 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.
8.1.6Transportation 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.
8.1.7Council employees who drive their own vehicles on Council business must ensure that they are insured for business travel.
8.2Insurance Excess Charges
8.2.1The 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 training provided if necessary. In addition, other action may be considered if appropriate.
8.34th EU Motor Insurance Directive
8.3.1On 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.
8.3.2In 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.
8.3.3It 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.
9Fuel
9.1All Star Fuel Cards
9.1.1The 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.
9.1.2Alternatively, staff holding a Company Barclaycard may purchase fuel at any petrol station accepting the credit card.
9.2Diesel at Hatch Pond
9.2.1Diesel 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.