DAR File No. 41107

Administrative Services, Fleet Operations

Rule R27-4

Vehicle Replacement and Expansion of State Fleet

Notice of Proposed Rule

(Amendment)

DAR File No.: 41107
Filed: 12/16/2016 11:41:30 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the changes to this rule include clarifying language, correcting minor grammatical errors, replacing references to "Department of Administrative Services" with "Governor's Office of Management and Budget", replacing "Division of Fleet Operations" and "DFO" with "division", clarifying language and correcting minor grammatical errors, and removing and adding requirements.

Summary of the rule or change:

A summary of the changes includes replacing references to "Department of Administrative Services" with "Governor's Office of Management and Budget", replacing "Division of Fleet Operations" and "DFO" with "division", correcting some grammatical errors, clarifying some redundant language, eliminating the requirement for review by staff of miscellaneous equipment upgrades, and adding the option of a cost-benefit analysis in reallocation or reassignment of agency-owned vehicles.

Statutory or constitutional authorization for this rule:

• Subsection 63A-9-401(1)(d)(v)
• Subsection 63A-9-401(1)(a)
• Subsection 63A-9-401(1)(d)(x)
• Subsection 63A-9-401(1)(d)(ix)
• Subsection 63A-9-401(1)(d)(xii)
• Subsection 63A-9-401(1)(d)(xi)
• Subsection 63A-9-401(4)(ii)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget because the language changes are technical in nature, and the removal and addition of requirements are similar to those already in place.

local governments:

There are no anticipated costs or savings to local governments because the language changes are technical in nature, and the removal and addition of requirements are similar to those already in place.

small businesses:

There are no anticipated costs or savings to small businesses because the language changes are technical in nature, and the removal and addition of requirements are similar to those already in place.

persons other than small businesses, businesses, or local governmental entities:

There are no anticipated costs or savings to persons other than small businesses, businesses, or local government entities because the language changes are technical in nature, and the removal and addition of requirements are similar to those already in place.

Compliance costs for affected persons:

There are no anticipated costs or savings to affected persons because the language changes are technical in nature, and the removal and addition of requirements are similar to those already in place.

Comments by the department head on the fiscal impact the rule may have on businesses:

I believe there are no potential fiscal impacts as a result of the changes to this rule.

Tani Pack Downing, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Administrative Services
Fleet Operations
Room 4120 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jeff Mottishaw at the above address, by phone at 801-538-3601, by FAX at , or by Internet E-mail at [email protected]
• Simone Rudas at the above address, by phone at 801-538-3240, by FAX at , or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/14/2017

This rule may become effective on:

02/21/2017

Authorized by:

Jeff Mottishaw, Director

R27. Administrative Services, Fleet Operations.

R27-4. Vehicle Replacement and Expansion of State Fleet.

R27-4-1. Authority.

(1) This rule is established pursuant to Subsections 63A-9-401(1)(a), 63A-9-401(1)(d)(v), 63A-9-401(1)(d)(ix), 63A-9-401(1)(d)(x), 63A-9-401(1)(d)(xi) 63A-9-401(1)(d)(xii), 63A-9-401(4)(ii), and 63A-9-401(6) , which require the [Division of Fleet Operations (DFO)]division to: coordinate all purchases of state vehicles; make rules establishing requirements for the procurement of state vehicles, whether for the replacement or upgrade of current fleet vehicles or fleet expansion; make rules establishing requirements for cost recovery and billing procedures; make rules establishing requirements for the disposal of state vehicles; make rules establishing requirements for the reassignment and reallocation of state vehicles ; and make rules establishing rate structures for state vehicles.

(a) All agencies exempted from the [DFO]division's replacement program shall provide [DFO]the division with a complete list of intended vehicle purchases prior to placing the order with the vendor.

(b) [DFO]The division shall work with each agency to coordinate vehicle purchases to make sure all applicable mandates, including but not limited to alternative fuel mandates, and safety concerns are met.

(c) [DFO]The division shall assist agencies, including agencies exempted from the [DFO]The division's replacement program, in their efforts to [insure]ensure that all vehicles in the possession, control, and/or ownership of agencies are entered into the fleet information system.

(2) Pursuant to Subsection 63J-1-306(8)(f)(ii), vehicles acquired by agencies, or monies appropriated to agencies for vehicle purchases, may be transferred to [DFO]the division and, when transferred, become part of the Consolidated Fleet Internal Service Fund.

 

R27-4-2. Fleet Standards.

(1) Prior to the purchase of replacement and legislatively approved expansion vehicles for each fiscal year, the [DFO]division's staff shall, on the basis of input from user agencies, recommend to DFO:

(a) a Standard State Fleet Vehicle (SSFV); and

(b) a standard vehicle and the features and miscellaneous equipment to be included in said vehicle for each vehicle class in the fleet.

(2) [DFO]The division shall, after reviewing the recommendations made by the [DFO]the division's staff, determine and establish, for each fiscal year:

(a) an SSFV; and

(b) [the]a standard replacement vehicle, along with included features and miscellaneous equipment for each vehicle class in the fleet.[A standard vehicle and the features and miscellaneous equipment to be included in said vehicle for each vehicle class in the fleet.]

(3) [DFO]The division shall establish lease rates designed to recover, in addition to overhead and variable costs, the capital cost associated with acquiring a standard replacement vehicle for each vehicle class in the fleet.

(4) [DFO]The division shall establish replacement cycles according to vehicle type and expected use. The replacement cycle that applies to a particular vehicle supposes that the vehicle will be in service for a specified period of time and will be driven an optimum number of miles within that time. Whichever of the time or mileage criterion is reached first shall result in the vehicle's replacement.

 

R27-4-3. Delegation of Division Duties.

(1) Pursuant to the provisions of [UCA]Section 63A-9-401([6]7), the [D]director of [DFO]the division, with the approval of the [E]executive director of the Department of Administrative Services, may delegate motor vehicle procurement and disposal functions to institutions of higher education by contract or other means authorized by law, provided that:

(a) The funding for the procurement of vehicles that are subject to the agreement comes from funding sources other than state appropriations, or the vehicle is procured through the federal surplus property donation program;

(b) Vehicles procured with funding from sources other than state appropriations, or through the federal surplus property donation program, [shall be]are designated "do not replace;" and

(c) In the event that the institution of higher education is unable to [designate said vehicles as "do not replace,"]comply with (b), the institution [shall ]warrants that it shall not use state appropriations to procure [their respective ]replacements without legislative approval.

(2) Agreements made pursuant to Section 63A-9-401([6]7) shall, at a minimum, contain:

(a) a precise definition of each duty or function [that is ]being [allowed to be performed]delegated;[ and]

(b) a clear description of the standards to be met in performing each duty or function [allowed]being delegated;[ and]

(c) a provision for periodic administrative audits by either the [DFO]the division or the Department of Administrative Services;[and]

(d) a representation by the institution of higher education that the procurement or disposal of the vehicles that are the subject matter of the agreement shall be coordinated with [DFO]the division. The institution of higher education shall, at the request of [DFO]the division, provide [DFO]the division with a list of all conventional fuel and alternative fuel vehicles it anticipates to procure or dispose of in the coming year. Alternative fuel vehicles shall be purchased by the agency or institution of higher education, when necessary, to [insure]ensure state compliance with federal AFV mandates;[ and]

(e) a representation by the institution of higher education that the purchase price is less than or equal to the state contract price for the make and model being purchased; and in the event that the state contract price is not applicable, that the provisions of Section 63-56-1 shall be complied with;[ and]

(f) a representation that the agreement is subject to the provisions of [UCA]Section 63J-1-306, Internal Service Funds - Governance and review;[ and]

(g) a representation by the institution of higher education that it shall enter into [DFO]the division's fleet information system all information that would be otherwise required for vehicles owned, leased, operated or in the possession of the institution of higher education;[ and]

(h) a representation by the institution of higher education that it shall follow state surplus rules, policies and procedures on related parties, conflict of interest, vehicle pricing, retention, sales, and negotiations; and

(i) a date on which the agreement shall terminate if the agreement has not been previously terminated or renewed.

(3) An agreement made pursuant to Section 63A-9-401(7) may be terminated by [DFO]the division if the results of administrative audits conducted by either [DFO]the division or the Department of Administrative Services reveal a lack of compliance with the terms of the agreement.

 

R27-4-4. Vehicle Replacement.

(1) All state fleet motor vehicles shall, subject to budgetary constraints, be replaced when the vehicle meets the first of either the mileage or time component of the established replacement cycle criteria.

(2) Prior to the purchase of replacement motor vehicles, [DFO]the division shall provide each agency contact with a list identifying all vehicles that are due for replacement, and the Standard State Fleet Vehicle (SSFV) that will be purchased to take the place of each vehicle on the list.

(3) All vehicles replacements will default to a SSFV.

(4) Pursuant to Section 63A-9-401([4]5)(b)(iv), agencies may request a non-SSFV as long as one or more of the following justifications are cited:

(a) Passenger space

(b) Type of items carried

(c) Hauling or towing capacity

(d) Police pursuit capacity

(e) Off-road capacity

(f) 4x4 capacity

(g) Emergency service (police, fire, rescue services) capacity

(h) Attached equipment capacity (snow plows, winches, etc.)

(i) Other justifications as approved by the [D]director of [DFO]the division or the director's designee.

(5) Agencies may petition the [E]executive [D]director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the [D]director of [DFO]the division or the director's designee denies a request for the replacement of a motor vehicle with an non-SSFV.

(6) Agencies may request that state fleet motor vehicles in their possession or control that have a history of excessive repairs, but have not reached either the mileage or time component of the applicable replacement cycle, be replaced. The request to replace motor vehicles with a history of excessive repairs is subject to budgetary constraints and the approval of the [D]director of [DFO]the division or the director's designee.

(7) Agencies may petition the [E]executive [D]director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the [D]director of [DFO]the division or the director's designee denies a request for the replacement of motor vehicles with a history of excessive repairs.

(8) In the event that the replacement vehicle is not delivered to the agency by the vendor, the agency shall have five (5) working days to pick-up the replacement vehicle from [DFO]the division, after receiving official notification of its availability. If the vehicles involved are not exchanged within the five-day period, a daily storage fee will be assessed and the agency will be charged the monthly lease fee for both vehicles.

(9) [DFO]The division is responsible for [insuring]ensuring that the state motor vehicle fleet complies with United States Department of Energy alternative fuel vehicle (AFV) mandates. [DFO]The division may require that a certain number of replacement vehicles, regardless of the requesting agency, be alternate fuel vehicles to [insure]ensure compliance with said AFV mandates.

 

R27-4-5. Fleet Expansion.

(1) Any expansion of the state motor vehicle fleet requires legislative approval.

(2) The agency requesting a vehicle that will result in fleet expansion, or requesting that a vehicle currently designated "do not replace" be placed on a replacement cycle, shall be required to provide proof of the requisite legislative approval and funding for the procurement of an expansion vehicle or the placement of a "do not replace" vehicle on a replacement cycle, and any additional features and miscellaneous equipment, before [DFO]the division is authorized to purchase the expansion vehicle.

(3) For the purposes of this rule, an agency shall be deemed to have the requisite legislative approval under the following circumstances only:

(a) The procurement of expansion vehicles or the placement of a "do not replace" vehicle on a replacement cycle is explicitly authorized by the Appropriations Committee during the general legislative session; or

(b) The procurement of expansion vehicles or the placement of a "do not replace" vehicle on a replacement cycle is explicitly authorized by a special session of the legislature convened for the express purpose of approving fleet expansion.

(4) For the purposes of this rule, only the following shall constitute acceptable proof of legislative approval of the requested expansion or placement of a "do not replace" vehicle on a replacement cycle:

(a) A letter, signed by the agency's [Chief Financial Officer]chief financial officer, citing the specific line item in the appropriations bill providing said authorization; or

(b) Written verification from the agency's analyst in the Governor's Office of Planning and Budget (GOPB) indicating that the request for expansion was authorized and funded by the legislature.

(5) Prior to the purchase of an expansion motor vehicle, [DFO]the division shall provide each agency contact with the Standard State Fleet Vehicle (SSFV) that will be purchased.

(6) All expansion vehicles will default to a SSFV.

(7) Pursuant to Section 63A-9-401([4]5)(b)(iv), agencies may request a non-SSFV as long as one or more of the following justifications are cited:

(a) Passenger space

(b) Type of items carried

(c) Hauling or towing capacity

(d) Police pursuit capacity

(e) Off-road capacity

(f) 4x4 capacity

(g) Emergency service (police, fire, rescue services) capacity

(h) Attached equipment capacity (snow plows, winches, etc.)

(i) Other justifications as approved by the [D]director of [DFO]the division or the director's designee.

(8) Agencies may petition the [E]executive [D]director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the [D]director of [DFO]the division or the director's designee denies a request for the expansion motor vehicle to be a non-SSFV.

(9) Upon receipt of proof of legislative approval of an expansion from the requesting agency, [DFO]the division shall provide to the State Division of Finance copies of the proof submitted in order for the Division of Finance to initiate the process for the formal transfer of funds necessary to procure the expansion vehicle(s) from the requesting agency to [DFO]the division. In no event shall [DFO]the division purchase expansion vehicles for requesting agencies until the Division of Finance has completed the process for the formal transfer of funds.

(10) In the event that the requesting agency receives legislative approval for placing a "do not replace" vehicle on a replacement cycle, the requesting agency shall, in addition to providing [DFO]the division with proof of approval and funding, provide the Division of Finance with funds[,] for transfer to [DFO]the division, in an amount equal to the[ amount of] depreciation that [DFO]the division would have collected for the number of months between the time that the "do not replace" vehicle was put into service and the time that the requesting agency begins paying the applicable monthly lease rate for the replacement cycle chosen. In no event shall [DFO]the division purchase a replacement vehicle for the "do not replace" vehicle if the requesting agency fails to provide funds necessary to cover said depreciation costs.

(11) When the expansion vehicle is procured, the vehicle shall be added to the fleet and a replacement cycle established.

(12) [DFO]The division is responsible for insuring that the state motor vehicle fleet complies with United States Department of Energy alternative fuel vehicle (AFV) mandates. [DFO]The division may require that a certain number of expansion vehicles, regardless of the requesting agency, be alternate fuel vehicles to [insure in]ensure compliance with said AFV mandates.

 

R27-4-6. Vehicle Feature and Miscellaneous Equipment Upgrade.

(1) Additional vehicle [feature(s)]features or miscellaneous equipment to be added to the standard replacement vehicle in a given class, as established by [DFO]the division[after reviewing the recommendations of the DFO staff], that results in an increase in vehicle cost shall be deemed a vehicle feature and miscellaneous equipment upgrade. A feature or miscellaneous equipment upgrade occurs when an agency requests:

(a) That a replacement vehicle contains a non-standard feature. For example, when an agency requests that an otherwise standard replacement vehicle have a diesel rather than a gasoline engine, or that a vehicle contain childproof locks.

(b) The installation of additional miscellaneous equipment not installed by the vehicle manufacturer. For example, when an agency requests that light bars or water tanks be installed on an otherwise standard replacement vehicle.

(2) Requests for vehicle feature and miscellaneous equipment upgrades shall be made in writing and:

(a) Present reasons why the upgrades are necessary in order to meet the agency's needs, and

(b) Shall be signed by the requesting agency's director[,] or the appropriate budget or accounting officer.

(3) All requests for vehicle feature and/or miscellaneous equipment upgrades shall be subject to review and approval by the [D]director of [DFO]the division or the director's designee. Vehicle feature and/or miscellaneous equipment upgrades shall be approved when in the judgment of the [D]director of [DFO]the division or the director's designee, the requested feature and/or miscellaneous equipment upgrades are necessary and appropriate for meeting the agency's needs.

(4) Agencies may petition the [E]executive [D]director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the [D]director of [DFO]the division or the director's designee denies a request for a feature and/or miscellaneous equipment upgrade.

(5) Agencies obtaining approval for feature and/or miscellaneous equipment upgrades shall, prior to the purchase of the vehicle, pay in full to director of [DFO]the division, a feature and/or miscellaneous equipment upgrade rate designed to recover the total cost associated with providing the additional feature(s) and/or miscellaneous equipment, unless the requesting agency otherwise negotiates an agreement with director of [DFO]the division for payments to be made in installments, and provided that the terms of the installment agreement do not delay the payment of the general fund debt.

(6) In the event that an agreement providing for the payment of a feature and/or miscellaneous equipment upgrade in installments is reached, the agency shall indemnify and make director of [DFO]the division whole for any losses incurred resulting from damage to, loss or return of the vehicle and/or equipment prior to the receipt of all payment installments by director of [DFO]the division.

 

R27-4-7. Agency Installation of Miscellaneous Equipment.

(1) The director of the [Division of Fleet Operations]division, with the approval of the [E]executive [D]director of the Department of Administrative Services, may enter into Memoranda of Understanding allowing customer agencies to install miscellaneous equipment on or in state vehicles if:

(a) the agency or institution has the necessary resources and skills to perform the installations; and

(b) the agency or institution has received approval for said miscellaneous equipment as required by R27-4-6.

(2) Each memorandum of understanding for the installation of miscellaneous equipment shall, at a minimum, contain the following:

(a) a provision that monthly lease fees shall be charged to the agency from the date of the agency's receipt of the replacement vehicle as required under R27-4-9(7)(b);[ and]

(b) a provision that said agency shall indemnify and hold [DFO]the division harmless for any claims made by a third party that are related to the installation of miscellaneous equipment in or on state vehicles in the agency's possession and/or control;[ and]

(c) a provision that said agency shall indemnify [DFO]the division for any damage to state vehicles resulting from installation or de-installation of miscellaneous equipment; and

(d) a provision that agencies with permission to install miscellaneous equipment shall enter into the [DFO]the division's fleet information system the following information regarding the miscellaneous equipment procured for installation in or on state vehicles, whether the item is held in inventory, currently installed on a vehicle, or sent to surplus[;]:

(i) item description or nomenclature;[ and]

(ii) manufacturer of item;[ and]

(iii) item identification information for ordering purposes;[ and]

(iv) procurement source;[ and]

(v) purchase price of item;[ and]

expected life of item in years;[ and]

(vi) warranty period;[ and]

(vii) serial number;

(viii) initial installation date;[ and]

(ix) current location of item (warehouse, vehicle number);[ and]

(x) anticipated replacement date of item;[ and]

(xi) actual replacement date of item;[ and]

(xii) date item sent to surplus; and

(xiii) SP-1 number.

(e) a provision requiring the agency or institution with permission to install[ being permitted to install] miscellaneous equipment to obtain insurance from the Division of Risk Management in amounts sufficient to protect [itself]the agency from damage to, or loss of, miscellaneous equipment installed on state vehicles. Agencies or institutions with permission to install miscellaneous equipment shall hold [DFO]the division harmless for any damage to, or loss of , miscellaneous equipment installed in state vehicles.

(f) a provision that [DFO]the division shall provide training and support services for the fleet information system and charge agencies with permission to install miscellaneous equipment a Management Information System (MIS) fee to recover these costs[.]; and

(g) a date on which the agreement shall terminate if the agreement has not been previously terminated or renewed.

(3) Agreements permitting agencies or institutions to install miscellaneous equipment in or on state vehicles may be terminated if there is a lack of compliance with the terms of the agreement by the state agency or institution.

 

R27-4-8. Vehicle Class Differential Upgrade.

(1) For the purposes of this rule, requests for vehicles other than the SSFV established by [DFO]the division [after reviewing the recommendations of the DFO staff, ]that result[s] in an increase in vehicle cost shall be deemed a vehicle class differential upgrade. For example, a vehicle class differential upgrade occurs when, regardless of additional features and/or miscellaneous equipment:

(a) The replacement vehicle requested by the agency, although within the same vehicle class as the vehicle being replaced, is not the standard replacement vehicle established by [DFO]the division for that class[.]; or

(b) The agency requests that a vehicle be replaced with a more expensive vehicle belonging to another class. For example, when an agency requests to have a standard 1/[2 ton]2-ton truck replaced with a standard 3/[4 ton]4-ton truck, or a compact sedan be replaced with a mid-size sedan.

(2) Requests for vehicle class differential upgrades shall be made in writing and:

(a) Present reasons why the upgrades are necessary in order to meet the agency's needs[,]; and

(b) Shall be signed by the requesting agency's director or the appropriate budget or accounting officer.

(3) All requests for vehicle class differential upgrades shall be subject to review and approval by the [D]director of [DFO]the division or the director's designee. Vehicle class differential upgrades shall be approved only when:

(a) In the judgment of the [D]director of [DFO]the division or the director's designee, the requested vehicle upgrade is necessary and appropriate for meeting the demands of changing operational needs for which the planned replacement vehicle is clearly inadequate or inappropriate;

(b) In the judgment of the [D]director of [DFO]the division or the director's designee, the requested vehicle upgrade is necessary and appropriate for meeting safety, environmental, or health or other special needs for drivers or passengers.

(4) Agencies may petition the [E]executive [D]director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the [D]director of [DFO]the division or the director's designee denies a request for a vehicle class differential upgrade.

(5) Agencies obtaining approval for vehicle class differential [upgrade(s)]upgrades at the end of the applicable replacement cycle shall pay to [DFO]the division, in full, prior to the purchase of the vehicle, a vehicle class differential upgrade rate designed to recover the difference in cost between the planned replacement vehicle and the actual replacement vehicle when the replacement vehicle is a more expensive vehicle belonging to the same or another class.

(6) Agencies obtaining approval for vehicle class differential [upgrade(s)]upgrades prior to the end of the current vehicle's replacement cycle shall, prior to the purchase of the replacement vehicle, pay to [DFO]the division, in full, an amount equal to the difference in cost between the actual replacement vehicle and the planned replacement vehicle , plus the amount of depreciation still owed on the vehicle being replaced, less the salvage value of the vehicle being replaced.

 

R27-4-9. Cost Recovery.

(1) State vehicles shall be assessed a lease fee designed to recover depreciation costs[,] and overhead costs, including AFV and MIS fees, and where applicable, the variable costs, associated with each vehicle.

(2) Lease rates are calculated by [DFO]the division according to vehicle cost, class, the period of time that the vehicle is expected to be in service, the optimum number of miles that the vehicle is expected to accrue over that period, and the type of lease applicable:

(a) A capital only lease is designed to recover depreciation plus overhead costs, including AFV and MIS fees, only. All variable costs, such as fuel and maintenance, are not included in the lease rate.

(i) Capital only leases are subject to [DFO]the division approval; and

(ii) Shall be permitted only when the requesting agency provides proof that its staffing, facilities and other infrastructure costs, and preventive maintenance and repair costs are less than, or equal to those incurred by [DFO]the division under the current preventive maintenance and repair services contract.

(iii) [DFO]The division shall, upon giving approval for a capital only lease, issue a delegation agreement to each agency.

(b) A full-service lease is designed to recover depreciation and overhead costs, including AFV and MIS fees, as well as all variable costs.

(3) [DFO]The division shall review agency motor vehicle utilization on a quarterly basis to identify vehicles in an agency's possession or control that, on the basis of the applicable replacement cycle, are either being under-utilized or over-utilized.

(4) [DFO]The division shall provide the results of the motor vehicle utilization review to each agency for use in agency efforts to [insure]ensure full utilization of all state fleet motor vehicles in its possession or control.

(5) In the event that a vehicle is turned in for replacement as a result of reaching the optimum mileage allowed under the applicable replacement cycle mileage schedule[,] prior to the end of the period of time that the vehicle is expected to be in service, a rate containing a shorter replacement cycle period that reflects actual utilization of the vehicle being replaced may be implemented for said vehicle's replacement.

(6) In the event that a vehicle is turned in for replacement as scheduled, but is not in compliance with optimum mileage allowed under the applicable replacement cycle, a rate containing a longer replacement cycle period that reflects actual utilization of the vehicle being replaced may be implemented for said vehicle's replacement.

(7) [DFO]The division shall begin the monthly billing process when the agency receives the vehicle.

(a) Agencies that choose to keep any vehicle on the list of vehicles recommended for replacement after the receipt of the replacement vehicle, pursuant to the terms of a memorandum of understanding between the leasing agencies and [DFO]the division that allows the agency to continue to possess or control an already replaced vehicle, shall continue to pay a monthly lease fee on the vehicle until it is turned over to the State Surplus Property Program for resale. Vehicles that are kept after the receipt of the replacement vehicle shall be deemed expansion vehicles for vehicle count report purposes.

(b) Agencies that choose to install miscellaneous equipment to the replacement vehicle, in house, shall be charged a monthly lease fee from date of receipt of the replacement vehicle. If [DFO]the division performs the installation, the billing process shall not begin until the agency has received the vehicle from [DFO]the division.

 

R27-4-10. Executive Vehicle Replacement.

(1) Executive [V]vehicles shall be available to only those with employment positions that have an assigned vehicle as part of a compensation package in accordance with state statute.

(a) Each fiscal year [DFO]the division shall establish a standard executive vehicle type rate and purchase price.

(b) Executives may elect to replace their assigned vehicle at the beginning of each elected term, or appointment period, or as deemed necessary for the personal safety and security of the elected or appointed official.

(c) When the executive leaves office, the vehicle shall be sold in accordance with State Surplus Property Program policies and procedures.

(2) Executives shall have the option of choosing a vehicle other than the standard executive vehicle based on the standard executive vehicle purchase price.

(a) The alternative vehicle selection should not exceed the standard executive vehicle purchase price parameter guidelines.

(b) In the event that the agency chooses an alternative [a ]vehicle that exceeds the standard vehicle purchase price guidelines, the agency shall pay for the difference in price between the vehicle requested and the standard executive vehicle purchase price.

 

R27-4-11. Capital Credit or Reservation of Vehicle Allocation for Surrendered Vehicles.

(1) This section implements that part of Item 59 of S.B. 1 of the 2002 General Session which requires the [Division of Fleet Operations]division to "create a capitalization credit program that will allow agencies to divest themselves of vehicles without seeing a future capitalization cost if programs require replacement of the vehicle."

(2) In the event that an agency voluntarily surrenders a vehicle to [DFO]the division under the capitalization credit program, the agency shall receive a capital credit equal to: the total depreciation collected by [DFO]the division on the vehicle (D), plus the estimated salvage value for the vehicle (S), for use towards the purchase of the replacement vehicle.

(3) Prior to the purchase of the replacement vehicle, the surrendering agency shall pay [DFO]the division[,] an amount equal to the difference between the purchase price of the replacement vehicle and the amount of the capital credit.

(4) [DFO]The division shall, in the event that an agency voluntarily surrenders a vehicle to [DFO]the division, hold the vehicle allocation open, or maintain the capital credit for the surrendering agency, for a period not to exceed the remainder of the fiscal year within which the surrender took place, plus an additional five fiscal years.

(5) The surrendering agency's failure to request the return of the vehicle surrendered prior to the end of the period established in [R27-4-11](4)[, above,] shall result in the removal of the surrendered vehicle or allotment from the state fleet, the loss of the agency's capital credit, and[effect] a reduction in state fleet size.

(6) [DFO]The division shall not hold vehicle allocations or provide capital credit to an agency when the vehicle that is being surrendered:

(a) has been identified for removal from the state fleet in order to comply with legislatively mandated reductions in state fleet size;[ or]

(b) is identified as a "do not replace" vehicle in the fleet information system;[ or]

(c) is a state vehicle not purchased by [DFO]the division; or

(d) is a seasonal vehicle that has already been replaced.

(7) Any agency that fails to request the return of a voluntarily surrendered vehicle prior to the end of the period set forth in [R27-4-11](4)[, above,] must comply with the requirements of R27-4-5, Fleet Expansion, to obtain a vehicle to replace the one surrendered.

 

R27-4-12. Inter-agency Vehicle Reassignment or Reallocation Guidelines.

(1) [DFO]The division is responsible for state motor vehicle fleet management, and in the discharge of that responsibility, one of [DFO's]the division's duties is to [insure]ensure that the state is able to obtain full utilization of, and the greatest residual value possible for, state vehicles.

(2) [DFO]The division shall, on a quarterly basis, conduct a review of state fleet motor vehicle utilization to determine whether the vehicles are being utilized in accordance with the mileage requirements contained in the applicable replacement cycles.

(3) [DFO]The division shall provide the results of the motor vehicle utilization review to each agency for use in agency efforts to [insure]ensure full utilization of all state fleet vehicles in its possession or control.

(4) In conducting the review, [DFO]the division shall collect the following information on each state fleet vehicle:

(a) year, make and model;

(b) vehicle identification number (VIN);

(c) actual miles traveled per month;

(d) as applicable, driver and/or program each vehicle is assigned to;

(e) location of the vehicle; and

(f) class code and replacement cycle.

(4) Agencies shall be responsible for verifying the information gathered by [DFO]the division.

(5) Actual vehicle utilization shall be compared to the scheduled mileage requirements contained in the applicable replacement cycle[,] and used to identify vehicles that may be candidates for reassignment or reallocation, reclassification, or elimination.

(6) In the event that intra-agency reassignment or reallocation of vehicles fails to bring vehicles into compliance with applicable replacement cycle mileage schedules within a replacement cycle, or a cost-benefit analysis on the time the vehicle is used does not warrant the vehicle to remain within the agency, [DFO]the division may, in the exercise of its state motor vehicle fleet management responsibilities, reassign, reallocate or eliminate the replacement of vehicles for vehicles that are chronically out of compliance with applicable utilization standards[replacement cycle mileage requirements to other agencies to ensure that all vehicles in the state fleet are fully utilized].

(7) Agencies required to relinquish vehicles due to a reassignment or reallocation may petition the [E]executive [D]director of the [Department of Administrative Services]Governor's Office of Management and Budget, or the executive director's designee, for a review of the reallocation or reassignment made by [DFO]the division. [However, v]Vehicles that are the subject matter of petitions for review shall remain with the [agencies]agency[to which they have been reassigned or reallocated] until such time as the [E]executive [D]director of the [Department of Administrative Services ]Governor's Office of Management and Budget or the executive director's designee renders a decision on the matter.

 

R27-4-13. Reassignment or Disposal of Underutilized State Vehicles.

(1) After vehicles have been reviewed in accordance with Section R27-4-12, and chronically underutilized vehicles have been identified, [DFO]the division shall initiate the steps necessary to reassign or dispose of the vehicle.

(2) At a minimum, the steps taken by [DFO]the division prior to reassignment or disposal must include:

(a) A review of the vehicle's history with the assigned agency;

(b) A [R]review the vehicle history with, and[ receive] direction from, the [E]executive [D]director of the Department of Administrative Services, or their designee, regarding the proposed action; and

(c) If approved by the [E]executive [D]director, [give ]notice to the agency that [they have]the agency has rights per Subsection R27-4-4(7) to petition the [E]executive [D]director of the Governor's Office of Management and Budget for further review.

(3) If the assigned agency voluntarily turns in the underutilized vehicle, a capital credit shall be established in accordance with Section R27-4-11.

(4) If the assigned agency disagrees with the action, [they]the agency may exercise [their]its right to have a review of the proposed action with the [E]executive [D]director of the Governor's Office of Management and Budget per Subsection R27-4-12(7).

(5) If there is agreement between [DFO]the division and the [E]executive [D]director of the Governor's Office of Management and Budget, then [DFO]the division shall give notice to the agency that it has been given authority to reassign or dispose of the vehicle in question.

(6) [DFO]The division shall reassign the vehicle to another fleet location, or begin the process of disposing of the vehicle.

 

KEY: fleet expansion, vehicle replacement

Date of Enactment or Last Substantive Amendment: [April 22, 2014]2017

Notice of Continuation: September 23, 2016

Authorizing, and Implemented or Interpreted Law: 63A-9-401(1)(a); 63A-9-401(1)(d)(v); 63A-9-401(1)(d)(ix); 63A-9-401(1)(d)(x); 63A-9-401(1)(d)(xi); 63A-9-401(1)(d)(xii); 63A-9-401(4)(ii)