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NEXT WE'LL HAVE THE OFFICE OF FLEET MANAGEMENT.[FY2023 Budget Workshop: Fleet Management ]
KEEP LOOKING AROUND THE ROOM FOR JACK CHRISTIE FOR THIS ONE, BUT I DON'T THINK HE'S HERE.WELCOME DIRECTOR GARY GLASCOCK AND MR. RAY CRUZ.
MY NAME IS GARY GLASCOCK AND I'M THE DIRECTOR OF THE FLEET MANAGEMENT DEPARTMENT.
I'LL BE PRESENTING THE DEPARTMENT'S PROPOSED OPERATING BUDGET FOR FISCAL YEAR 2023.
ALONG WITH ME IS RAY CRUZ OF THE FINANCE DEPARTMENT.
RAY SERVES AS THE CHIEF FINANCIAL OFFICER FOR FLEET MANAGEMENT.
I'LL START WITH SOME DEPARTMENT INFORMATION FOR REFERENCE PURPOSES.
OUR MISSION IS TO PROVIDE THE CITY OF HOUSTON WITH BEST VALUE FLEET MANAGEMENT SERVICES.
WE OPERATE 27 MAINTENANCE GARAGES AND 67 REFUELING SITES TO SERVICE A LITTLE MORE THAN 13,700 VEHICLES AND PIECES OF EQUIPMENT.
FLEET MANAGEMENT IS A REVOLVING FUND DEPARTMENT.
OUR PROPOSED OPERATING BUDGET FOR FISCAL YEAR 2023 IS $98,930,411.
THIS BUDGET WILL PROVIDE FOR A LITTLE MORE THAN 381 FULL-TIME POSITIONS THAT ARE DEPLOYED WITHIN FIVE DIFFERENT PROGRAMS. THE FIRST OF THESE PROGRAMS IS THE DIRECTOR'S OFFICE, WHICH HANDLES THE STRATEGIC PLANNING, POLICYMAKING AND PERSONNEL ADMINISTRATION FOR THE DEPARTMENT.
THE BUDGET OF THE DIRECTOR'S OFFICE COVERS RESTRICTED ACCOUNT CHARGES BY OTHER CITY DEPARTMENTS, INCLUDING HUMAN RESOURCES, FINANCE, AND HITS.
OUR OPERATION DIVISION PERFORMS THE MAINTENANCE WORK IN THE GARAGES AND OVERSEES THE REPAIR WORK DONE BY OUR CONTRACTORS.
61% OF THE TOTAL FLEET MANAGEMENT BUDGET IS ALLOCATED TO THE OPERATIONS PROGRAM TO COVER THE COST OF LABOR, SPARE PARTS AND CONTRACTED SERVICES.
THE FUEL MANAGEMENT GROUP OVERSEES FUEL INVENTORIES AND SERVICE STATION MAINTENANCE.
THEIR BUDGET PAYS FOR THE GASOLINE AND DIESEL USED BY CITY VEHICLES.
OUR CUSTOMER SERVICE DIVISION HANDLES THE DISTRIBUTION OF REPLACEMENT PARTS, OUR MATERIAL AND SERVICES CONTRACTS, AS WELL AS OUR MOTOR POOL OR FLEET SHARE.
THE CUSTOMER SERVICE BUDGET IS LARGELY DRIVEN BY LABOR COSTS.
AND THEN FINALLY, OUR ASSET MANAGEMENT DIVISION OVERSEES CAPITAL PROGRAM, VEHICLE ONBOARDING, TRACKING, AND EVENTUAL DISPOSAL.
THEY ALSO MANAGE OUR DATA COLLECTION SYSTEM AS WELL AS OUR REPORTING SYSTEMS. IN ADDITION TO LABOR COSTS, THE ASSET MANAGEMENT BUDGET COVERS SOFTWARE MAINTENANCE AND RELATED EXPENSES.
THIS SLIDE PROVIDES HISTORICAL REFERENCE FOR OUR PROPOSED BUDGET AND MAJOR EXPENSE CATEGORIES.
AGAIN, WE ARE A REVOLVING FUND DEPARTMENT, SO THE LISTED VALUES REFLECT BOTH OUR REVENUES AND EXPENSES.
IN THE TOP TABLE, YOU'LL SEE THAT WE'RE PROPOSING A $3.9 MILLION OR 4.2% INCREASE IN OPERATING EXPENSES COMPARED TO CURRENT YEAR.
MOVING DOWN TO THE EXPENSE CATEGORY TABLE, OUR PERSONNEL EXPENSES ARE INCREASING BY 3.6%.
WHILE THE COST OF SUPPLIES IS GOING UP $1.8 MILLION OR 9%, WE'RE SEEING A 1% INCREASE IN RESTRICTED ACCOUNT CHARGES, AS WELL AS AN INCREASE OF $535,000 FOR CONTRACTED SERVICES.
AND I'LL PROVIDE A LITTLE MORE DETAIL ON THESE INCREASES A LITTLE LATER IN THE PRESENTATION.
HERE'S A GRAPHICAL REPRESENTATION ON HOW THE FUNDING OF OUR PROPOSED BUDGET IS BEING ALLOCATED.
LABOR IS THE LARGEST SLICE OF THE PIE AT 37% OF TOTAL, FOLLOWED BY FUEL AT 25% AND PARTS AT 16%.
WE PLAN TO SPEND ROUGHLY $9 MILLION ON OUTSIDE CONTRACTED SERVICES AND $5.6 MILLION ON TIRES.
THE $4.1 MILLION SLICE OF PIE LABELED OTHER RESTRICTED ACCOUNTS INCLUDES WHAT WE PAY OTHER CITY DEPARTMENTS FOR THEIR SERVICES.
AND FINALLY, THE 3 MILLION IN THE OTHER MISCELLANEOUS EXPENSES WILL FUND ITEMS SUCH AS OFFICE SUPPLIES, EMPLOYEE UNIFORMS, DIAGNOSTIC SOFTWARE, AND TOOLS.
FLEET MANAGEMENT RECEIVES REVENUES FROM OUR CLIENT DEPARTMENTS TO COVER THEIR FUEL AND VEHICLE MAINTENANCE EXPENSES.
ROUGHLY 74 MILLION IN REVENUE WILL BE SOURCED
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FROM THE GENERAL FUND DEPARTMENTS, WHILE 23 MILLION IS EXPECTED FROM THE DEPARTMENTS THAT OPERATE WITH ENTERPRISE FUNDS.ANOTHER 2.8 MILLION WILL COME FROM SPECIAL GRANTS AND FUNDS.
THIS TABLE LISTS THE EXPENDITURE CHANGES INCLUDED IN THE PROPOSED BUDGET COMPARED TO CURRENT YEAR AND THE TOP SECTION OF THE TABLE, YOU'LL SEE THAT OUR OPERATING BUDGET FOR FISCAL YEAR 22 IS $94.9 MILLION.
THIS AMOUNT INCLUDES A $4.6 MILLION ADJUSTMENT THAT WAS MADE TO COVER FUEL PRICE INCREASES.
THE MIDDLE SECTION OF THE TABLE HIGHLIGHTS THE SIGNIFICANT ADJUSTMENTS OF THE PROPOSED FISCAL YEAR 23 BUDGET.
ALL OF THE INCREASES ARE LIMITED TO CONTRACTUAL OR MANDATED ADJUSTMENTS.
THE SUM OF THESE ADJUSTMENTS RESULTS IN THE 4.2% BUDGET INCREASE COMPARED TO CURRENT YEAR.
HERE'S SOME ADDITIONAL DETAIL ON THE BUDGET ADJUSTMENTS OF THE PREVIOUS SLIDE.
PERSONNEL COSTS ARE GOING UP APPROXIMATELY $997,000 DUE TO THE HOPE SALARY INCREASE, ALONG WITH A RISING COST OF HEALTH AND PENSION BENEFITS.
OUR HEAD COUNT FOR FISCAL YEAR 23 ACTUALLY DROPS BY THREE COMPARED TO CURRENT YEAR.
THIS INCREASES ON TOP OF THE $4.6 MILLION ADJUSTMENT THAT WAS MADE TO THE CURRENT YEAR BUDGET FOR FUEL.
A $2 MILLION ESCALATION FOR THE PURCHASE OF PARTS WILL COVER RISING COSTS RESULTING FROM INFLATION AND SUPPLY CHAIN ISSUES.
WE'RE ALSO INCREASING THE COST OF CONTRACTED SERVICES BY $1 MILLION.
THIS ADJUSTMENT WILL HANDLE ESCALATING CONTRACTOR RATES AS WELL AS PROVIDE US WITH SOME ADDITIONAL CONTRACTING CAPACITY.
THE $379,000 REDUCTION IN PROGRAM EXPENSES IS A SUM OF CUTS OVER MULTIPLE BUDGET LINE ITEMS, AS WELL AS THE ELIMINATION OF ONE TIME EXPENSES THAT OCCURRED DURING THE CURRENT YEAR.
AND THIS CONCLUDES THE FLEET MANAGEMENT FISCAL YEAR 2023 BUDGET PRESENTATION.
WE'VE GOT, UH, NEXT SLIDE THERE, BUT I THINK WE'LL SKIP OVER IT FOR THE SAKE OF TIME, REALLY ISN'T RELATED TO THE BUDGET.
AND, UH, WE'LL GO TO QUESTIONS.
FIRST ONE IS FROM, UH, COUNCIL MEMBER MICHAEL KUBA, WHO'S NOT, UH, WITH US AT THE MOMENT.
HIS QUESTION IS, HOW DO WE PURCHASE GASOLINE, DIESEL AND CNG? UH, DO WE BUY IT EACH MONTH OR IS THERE A CONTRACT OUT FOR IT EACH YEAR? UM, WE PURCHASE IT UNDER CONTRACT AND WE'RE CURRENTLY IN THE THIRD YEAR OF THE CONTRACT.
WE'VE GOT TWO ONE YEAR OPTIONS THAT ARE AVAILABLE.
THE, THE CURRENT TERM ENDS, I BELIEVE IT'S IN SEPTEMBER OF THIS YEAR.
AND THAT VENDOR IS FOR ALL DIFFERENT TYPES OF GASOLINE? NO, WE'VE ACTUALLY GOT, UH, ONE VENDOR FOR, UH, GASOLINE AND ANOTHER VENDOR FOR, UH, DIESEL.
UH, AND WE, WE ACTUALLY RIDE THE CONTRACT THAT'S OWNED BY METRO.
AND SO METRO'S FUEL BUYING IN ADDITION TO THE CITY'S FUEL BUYING, PROVIDES US WITH SOME PURCHASING LEVERAGE.
SECOND QUESTION IS LA LAST YEAR WE HAD AN, A BUDGET AMENDMENT THAT WAS PUT FORTH THAT WE DISCUSSED WITHIN BFA THAT TALKED ABOUT, UM, THE IDEA OF PUTTING ADVERTISEMENTS ON CITY VEHICLES AS A WAY TO GENERATE REVENUE.
I KNEW WE WERE DOING MAYBE A STUDY OR AN ANALYSIS ON WHETHER OR NOT THAT IS FEASIBLE, SOMETHING THAT WOULD BE ATTRACTED TO THE CITY.
ARE YOU FAMILIAR WITH THAT? WHERE DO WE STAND ON THAT? I WAS NOT INVOLVED IN THOSE PARTICULAR DISCUSSIONS, BUT I CAN SAY THAT AT A PREVIOUS EMPLOYER, WE DID TAKE ADVANTAGE OF THAT PARTICULAR OPPORTUNITY AND THERE WAS SOME REVENUE THAT WAS GENERATED.
OF COURSE, THIS WAS, UH, USING TRANSIT BUSES, SO THERE'S A MUCH LARGER CANVAS COMPARED TO THE, UH, OPPORTUNITIES THAT ARE PROVIDED WITH CITY VEHICLES CHAIR.
DID WE EVER GET ANY FEEDBACK ON THAT AFTER WE DID THAT, UH, BFA MEETING REGARDING THAT TOPIC? NO, NOT THAT I RECALL.
I'LL FOLLOW UP WITH YOU ON THAT.
ARE THE CONTRACTS FOR THE GAS, DIESEL AND LNG, ARE THEY A FIXED PRICE ARE A VARIABLE? THEY'RE VARIABLE PRICE AND THEY'RE BASED ON THE PLATS MARKETING INDEX.
AND SO OUR PRICE IS RELATIVE TO WHATEVER THAT INDEX IS DOING.
SO AS PRICES RISE, WE DON'T, WE DIDN'T DO ANY HEDGING.
WE DID NOT DO ANY HEDGING, BUT WE ARE CONSIDERING IT AT THE MOMENT.
UH, IN FACT, WE'VE HAD SOME, UH, DISCUSSIONS WITH BOTH OUR FINANCE GROUP AND LEGAL AS WELL AS METRO BECAUSE THEY'RE DOING A LITTLE HEDGING RIGHT NOW TO SEE IF WE CAN OFFER THE CITY SOME PROTECTION GOING THAT ROUTE.
UM, THANK YOU DIRECTOR FOR THE PRESENTATION.
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UM, AS COSTS ARE INCREASING FOR GAS, FOR JUST MAINTENANCE, FOR EVERYTHING RELATED TO FLEET, HOW CLOSELY ARE YOU WORKING WITH THE, THE DEPARTMENTS WHEN THEY'RE LOOKING AT THEIR BUDGETS? ARE YOU TELLING THEM HERE'S WHAT WE CAN EXPECT FOR INCREASE IN COSTS AND THEN THEY'RE DOING THEIR BUDGET ACCORDINGLY? OR ARE THEY JUST KIND OF LEFT UP TO DETERMINING HOW MUCH THOSE COSTS MIGHT GO UP? YES.WE, WE WORK WITH THE, WITH THE DEPARTMENTS REGULARLY, AND WE'RE ACTUALLY SEEING SOME UNPRECEDENTED TIMES.
AND SO THE, WE'RE SEEING SOME, SOME REALLY HIGH INCREASE FOR THE COST OF VEHICLES.
WE'RE ALSO SEEING HIGH INCREASES FOR PARTS, BUT WE'RE ALSO SEEING SUPPLY CHAIN ISSUES.
AND SO WHAT USED TO TAKE SIX MONTHS TO TO GET IS NOW TAKING UP TO 1824 MONTHS FOR DELIVERY.
AND SO WHAT WE'RE ASKING OUR DEPARTMENTS TO DO IS TO FOCUS ON THE CRITICAL VEHICLES IN THEIR SHIFT WITHIN THEIR FLEET, UH, BECAUSE THEY'RE MUCH HARDER TO GET COMPARED TO PREVIOUS.
AND SO THAT'S WHERE OUR ATTENTION IS AT THE MOMENT.
ALONG THOSE SAME LINES AS COUNCIL MEMBER PECK, I NOTICE IN THE BUDGET BOOK YOU'VE GOT UNDER FUEL MANAGEMENT, THERE'S A, A DECREASE $3 MILLION IN THAT DIVISION.
SO I DON'T KNOW IF THAT'S JUST BECAUSE OF WHEN WE COUNT BUDGET TOO.
SO THERE WAS A DECREASE MADE RELATIVE TO THE CURRENT YEAR BUDGET OF, AND MY UNDERSTANDING IS THAT BASED ON FUEL PRICES, WHEN WE PUT THE BUDGET TOGETHER, THE COST OF FUELS ACTUALLY MUCH LESS THAN WHAT IT CURRENTLY IS.
SO WILL YOU PROBABLY MAKE AN ADJUSTMENT IN THE, TO THIS? WELL, BECAUSE THAT DID CATCH MY EYES WHEN I WAS LOOKING AT THE DIVISIONS.
AND HOW COULD THAT, HOW COULD FUEL MANAGEMENT BE GOING DOWN IN THESE DAYS? SO IT WAS DURING, UM, WE INCREASED THE BUDGET BY $4.5 MILLION DURING GENERAL APPROPRIATIONS.
SO THAT KIND OF CHANGED THE, THE BALANCE IN FUEL FOR NEXT YEAR.
SO THE ORIGINAL BUDGET FOR FUEL WAS $20 MILLION.
WE INCREASED IT TO $24 MILLION, BUT THE FY 23 BUDGET WAS 24 MILLION, THEN CHANGE.
WAS IT NOT DUE TO MORE L AND G OR ELECTRIC CARS OR, IT'S STRICTLY THAT STRAIGHT.
THANK YOU FOR THE PRESENTATION.
I WAS, I WAS HOPING YOU WOULDN'T SKIP OVER THE LAST PAGE.
UH, AS IT RELATES TO FLEET ELECTRIC ELECTRIFICATION, REALLY QUICKLY OFF THE TOP OF YOUR HEAD, WHERE ARE WE IN TERMS OF PERCENTAGE OF TOTAL FLEET MOVING TOWARDS HYBRID OR ELECTRIC? UH, IN TERMS OF PERCENTAGE, UH, LET'S SEE.
WE'RE, WE'RE STILL VERY SMALL.
UM, WE'RE MAKING IN INCREMENTAL GRAIN, UH, GAINS, I SHOULD SAY.
WE JUST, UH, COUNSEL JUST APPROVED THE PURCHASE OF 97 VEHICLES.
UH, WE'RE GETTING READY TO BRING ANOTHER PACKAGE OF ROUGHLY 10 VEHICLES WITHIN THE, UH, WITHIN THE NEXT, UH, PROBABLY THE NEXT MONTH OR SO.
UH, ONE OF THE BIG ISSUES THAT WE'RE DEALING WITH WHEN IT COMES TO, TO PURCHASING ELECTRIC VEHICLES IS THE LIMITED CAPITAL BUDGET THAT'S AVAILABLE.
AND SO, AS I MENTIONED EARLIER, THE FOCUS O ON CAPITAL AND HOW WE USE THAT CAPITAL IS ON CRITICAL EQUIPMENT.
SO THE BULK OF THE MONEY IS GOING TO POLICE CARS, FIRE TRUCKS AND REFUGE TRUCKS, WHATEVER'S LEFT OVER GETS ALLOCATED TO LIGHT DUTY VEHICLES.
AND THAT'S WHERE OUR OPPORTUNITY IS TO, UH, FUND ELECTRIC VEHICLES.
NOW WHAT WE'RE WORKING ON NOW IS, UH, WE'RE TRYING TO TAKE ADVANTAGE OF THE CURRENT USED CAR MARKET AND SELL OFF AS MANY UNDERUTILIZED CITY VEHICLES AS POSSIBLE.
WE'RE USING THOSE PROCEEDS TO BUY, UH, ELECTRIC VEHICLES NOW.
AND I, ONE OF THE REASONS I'M ASKING IS ONE IS, UH, FUEL CONTINUES TO INCREASE.
WE HAVE SUPPLY SHORTAGES, UH, VEHICLES THAT ARE, UH, WAY BEYOND THEIR LIFESPAN, AND WE NEED TO CONTINUE TO MOVE TOWARDS THE MAYOR'S GOAL, UM, OF A RENEWABLE ENERGY FLEET.
HOWEVER, UM, I ALSO KNOW THAT THE FIRE DEPARTMENT DURING THEIR PRESENTATION, UM, WITH THEIR LEASE PROGRAM FOR CERTAIN VEHICLES IS SHOWING, UH, IMPROVEMENTS IN RETURNS ON THAT.
ARE WE CONSIDERING THAT FOR OTHER, UM, PARTS OF THE FLEET, CITY OF HOUSTON FLEET? YES, MA'AM.
SO AS I MENTIONED PREVIOUSLY, WE'RE IN SOME UNPRECEDENTED TIMES HERE, UH, VEHICLE COSTS AS WELL AS, UH, THE ABILITY TO SOURCE PARTS TO, TO MAKE REPAIRS.
WE'VE GOT EXAMPLES OF FIRE TRUCKS THAT WERE DAMAGED IN ACCIDENTS EARLIER THIS YEAR THAT ARE TAKING A YEAR TO 18 MONTHS TO GET REPAIRED SIMPLY BECAUSE PARTS, UH, AREN'T, AREN'T AVAILABLE.
AND SO, UH, WE HAVE TO START THINKING STRATEGICALLY ON HOW WE ENSURE THAT, UH, THAT OUR EMERGENCY SERVICES ARE SUSTAINED.
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AND ON TOP OF THAT, WE'RE HAVING LOTS OF DIFFICULTY AS I'VE HEARD THE OTHER DEPARTMENTS, UH, MENTION RECRUITING MECHANICS.AND SO AS WE, UH, LOOK AT OUR CURRENT SITUATION, WE WILL BE, WE BEING FLEET MANAGEMENT AND OUR IN-HOUSE PERSONNEL FOCUSING ON THAT CRITICAL EQUIPMENT.
AND WE DO THINK THERE'S GOING TO BE SOME OPPORTUNITIES FOR INCREASED LEASING TO HELP MANAGE WHAT'S GOING ON WITH THE LIGHT DUTY VEHICLES.
COUNCIL MEMBER CAROLYN, EVAN SHABAZZ.
AM MAYOR PERAM, THANK YOU SO MUCH FOR THIS PRESENTATION.
I JUST WANTED TO ASK A QUESTION.
HAVE THERE BEEN ANY CONCERNS ABOUT THE THEFT OF CATALYTIC CONVERTERS? HAVE ANY OF THEM BEEN STOLEN, AND ARE THERE ANY FINANCIAL IMPLICATIONS, UH, INVOLVED WITH PROTECTING THEM WITH, UH, THE FLEET? YES, MA'AM.
WE DID HAVE A NUMBER OF CATALYTIC CONVERTERS STOLEN.
UM, BUT I'M KNOCKING ON WOOD, BUT IT HAS BEEN, UH, OVER SIX TO EIGHT MONTHS SINCE WE'VE, UH, RECORDED ANY THEFTS.
UM, I'M, I'M GOING OFF OF MEMORY HERE, BUT I WANT TO SAY THAT THE CITY HAS SPENT ALMOST $400,000 IN MAKING REPAIRS TO THOSE VEHICLES THAT WERE DAM UH, VANDALIZED.
UM, DIRECTOR, DO WE KNOW HOW MANY EMPLOYEES RIGHT NOW ARE UTILIZING OUR FLEET SHARE PROGRAM? UH, I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD.
I WILL SAY THAT, UH, OVER THE PAST YEAR WE'VE WORKED VERY HARD TO GET FLEET SHARE UP.
WE SAW NUMBERS DROP DRAMATICALLY DURING THE, UH, PANDEMIC AND, UH, WE'RE NOW STARTING TO SEE AN INCREASE.
UH, WHAT WE'VE ALSO BEEN DOING IS, UH, FOR OUR CLIENT DEPARTMENTS OFFERING LONG-TERM FLEET SHARE LEASES TO COVER THEIR IMMEDIATE NEEDS.
UH, OUR PURPOSE IS TO GET AS MANY OF THE POOL VEHICLES OUT IN USE, UH, BECAUSE THEY'RE NOT DOING ANYTHING FOR THE CITY WHEN THEY'RE JUST SITTING.
AND SO, UH, I BELIEVE WE'RE UP.
I I WANT TO, AND I'LL GET BACK TO YOU, BUT I BELIEVE WE'RE AT 50% RIGHT NOW, UH, WHICH IS AN IMPROVEMENT FROM, UH, I THINK WE STARTED SOMEWHERE AROUND 30% EARLIER THIS YEAR.
BUT, BUT I'LL BE HAPPY TO GET THOSE DETAILS TO YOU.
I'LL, WE'LL SUBMIT ALL OF THESE QUESTIONS IN A FEW OTHERS JUST TO FOLLOW UP IN TERMS OF ELECTRIFICATION PRO PROGRESS.
WE HAVE THREE PUBLIC SPEAKERS HERE.
UH, OUR FIRST WILL BE JASON OLIVER.
UH, THANK YOU ALL FOR THE PRESENTATION.
I THINK THE FIRST QUESTION, KIND OF GOING ALONG WITH WHAT COUNCIL MEMBER CAYMAN WAS TALKING ABOUT, UH, WHAT'S THE KIND OF PLAN TO BUDGET FOR ELECTRICAL VEHICLE CHARGING INFRASTRUCTURE? I KNOW THAT THAT'S GONNA BE, OF COURSE, THE ELECTRIFICATION OF THE VEHICLES IS, IS IMPORTANT, BUT ALSO THE INFRASTRUCTURE FOR, FOR CHARGING IS, IS VITAL AS WELL.
RIGHT? SO THE PURCHASE OF INFRASTRUCTURE TO RECHARGE THE ELECTRIC VEHICLES IS MADE UNDER THE CAPITAL PROGRAM.
UM, WE'RE ALSO USING THE PROCEEDS FROM VEHICLE CELLS TO BUY CHARGERS AS WELL.
AND SO OUR IDEA CURRENTLY IS THAT WE ARE GONNA NEED ONE CHARGER FOR EACH ELECTRIC VEHICLE THAT WE PURCHASE AT LEAST INITIALLY.
AND THEN THE VEHICLE LEASE PROGRAM, WHAT DO WE KNOW ABOUT LIKE, THE ENVIRONMENTAL IMPACT OF, OF THAT? 'CAUSE THAT IT, IT SEEMS LIKE THAT MIGHT, WHILE IT MIGHT BE COST EFFECTIVE, IT IT HAS A SIGNIFICANT ENVIRONMENTAL IMPACT THAT MIGHT KIND OF OFFSET WHAT WE'RE DOING WITH THE ELECTRIFICATION.
WELL, IN TERMS OF ENVIRONMENTAL IMPACT, I WOULD SAY THAT THE, THE LEASE PROGRAM HAS THE SAME IMPACT AS PURCHASING A NEW VEHICLE.
AND SO BASICALLY WHAT WE'RE DOING IS PULLING AN OLDER VEHICLE WITH OLDER EMISSIONS, A HIGHER EMITTING VEHICLE OFF THE STREET AND REPLACING IT WITH A NEWER VEHICLE.
SO I, I GUESS IN SUMMARY, UH, ANYTIME WE CAN REPLACE AN OLD VEHICLE, WE'RE IMPROVING THE ENVIRONMENTAL IMPACT, EVEN IF IT'S JUST BEING BOUGHT.
'CAUSE IT, IT'S LIKE A YEAR OR SO, RIGHT? WITH SOME, WITH SOME OF THESE VEHICLES, THE, THE TIMING SO THAT IT WON'T BE THAT OLD IN, IN, IN, UH, IN MANY CASES WE ARE REPLACING MODEL YEAR 2000 VEHICLES WITH THESE LEASES AND THOSE VEHICLES WHEN THEY WERE BUILT HAD MUCH MORE LENIENT BLESS EMISSIONS REQUIREMENTS COMPARED TO CURRENT YEAR VEHICLES.
AND SO JUST IN THAT SWITCH OUT ALONE, WE, UH, WE PROVIDE FOR SOME ENVIRONMENTAL BENEFIT.
I HAVE A QUESTION, UM, SIMILAR TO JASON'S, JUST IN TERMS OF ENVIRONMENTAL IMPACT, UM, FUEL CONSUMPTION APPEARS TO BE FAIRLY CONSISTENT AROUND 10 MILLION GALLONS ANNUALLY.
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UM, AND I'M WONDERING IF WE HAVE ANY, IF Y'ALL HAVE ANY INITIATIVES IN PLACE OR PROPOSED TO SIGNIFICANTLY DECREASE FUEL CONSUMPTION? WELL, WE DO, UH, WE HAVE THE, UH, THE TARGETS OF THE CLIMATE ACTION PLAN, UH, TO REPLACE ALL THE NON-EMERGENCY VEHICLES WITH, UH, ELECTRIC VEHICLES BY YEAR 2030.AND THEN WE ALSO HAVE A VEHICLE SELECTION CRITERIA WE USE.
SO WHEN, UH, VEHICLE PURCHASES OR LEASES ARE PROPOSED TO OUR DEPARTMENT BY OUR CLIENT DEPARTMENTS, WE LOOK AT A COUPLE OF DIFFERENT THINGS.
WE LOOK AT THE APPLICATION, HOW THE VEHICLE IS BEING USED, AND THEN WE LOOK AT THE MARKET TO SEE IS THERE AN ELECTRIC VEHICLE AVAILABLE.
IF THERE IS AND IT FITS IN THE APPLICATION, THEN WE MAKE THE DECISION TO PURCHASE THAT ELECTRIC VEHICLE.
IF AN ELECTRIC VEHICLE IS NOT AVAILABLE, THEN WE LOOK TO THE MARKET TO SEE IF A HYBRID VEHICLE IS AVAILABLE.
AND IF THERE IS, THEN WE'LL GO HYBRID.
IF WE CANNOT SATISFY THE APPLICATION WITH EITHER AN EV OR A HYBRID, THEN WE PURCHASE THE CONVENTIONAL VEHICLE.
THANK YOU, MR. BERNARD BUTLER.
IT'S ACTUALLY BRODERICK LIKE MATTHEW BRODERICK.
THANK YOU FOR THE PRESENTATION.
AND I DON'T MEAN TO BE CRITICAL WITH ALL DUE RESPECT, IT WAS SOBERING, BUT I APPRECIATE THE HONESTY OF WHY WE AS CITIZENS WALK AROUND AND SEE THAT TESLA IS PUTTING, UH, ITS FUELING STATIONS IN THE HEB AND HEIGHTS IN MONTROSE, AND IT'S KIND OF AMAZING, RIGHT? HE'S NOT A CITY GOVERNMENT, HE'S RICHEST MAN IN THE WORLD.
BUT FOR YOU TO TELL ME THAT YOU'RE NOT OVER 2% BECAUSE WE CAN'T GET TO THIS MAGICAL FLEET OF ELECTRIC VEHICLES IS VERY SOBERING.
I WOULD THINK THAT THE SOON TO BE THIRD LARGEST CITY IN THE COUNTRY WOULD'VE BEEN LEAPS AND BOUNDS LIKE AUSTIN OR SOME OTHER PLACE LIKE THAT.
I DON'T EXPECT AN ANSWER, BUT I AM VERY INTERESTED IN THE SECOND PART WHEN YOU SAID YOU DON'T HAVE MECHANICS.
WELL, IN NORTHEAST HOUSTON WHERE I AM, WE HAVE A COMMUNITY COLLEGE THAT WE NEED TO HAVE SOMEONE HAVE A STRATEGIC PARTNERSHIP WITH TO TEACH YOUNG MILLENNIALS TO BE ACTUALLY MECHANICS AND NOT MAYBE OLD SCHOOL MECHANICS, BUT MECHANICS OF HYBRIDS AND FUEL VEHICLES.
SO PLEASE GIVE THAT SOME CONSIDERATION GOING FORWARD, LOOKING DOWN THE ROAD.
AND I MIGHT ADD THAT, UH, IN, IN FACT, WE'VE GOT OUR CHIEF OF STAFF IN THE CROWD HERE, AND WE HAVE MADE SOME, SOME PRETTY SIGNIFICANT STRIDES IN REACHING OUT TO COMMUNITY COLLEGES AS WELL AS HIGH SCHOOLS.
THE HIGH SCHOOL MECHANIC PROGRAMS HAVE PROVEN TO BE VERY PRODUCTIVE IN, UH, IN FINDING, UH, AND RECRUITING EMPLOYEES.
AND SO WE'RE PRESSING VERY HARD WITH THOSE, UH, LEARNING INSTITUTIONS TO TRY TO GET ANYTHING WE CAN TO HELP US OUT.
THE ONLY PERSON YOU GOTTA COMPETE WITH IS CHIEF PENA.
HE WANTS TO BE FIREMEN, BUT IF YOU GET A COUPLE OF MECHANICS OUT OF IT, NOT A PROBLEM.
AND THANK YOU, MR. GLASCOCK AND MR. CRUZ.
UM, THIS CONCLUDES A FLEET MANAGEMENT DEPARTMENT WORKSHOP.
SO WE'LL NOW ADJOURN FOR A SECOND AND BEGIN OUR BUDGET WORKSHOP ON THE HOUSING DEPARTMENT.