Page 192 - PowerPoint Presentation

VEHICLE MAINTENANCE & REPLACEMENT POLICY

The Town recognizes that deferred maintenance and not anticipating capital replacement needs
increases future capital costs. Annually, available funds will be evaluated during the budget process
and a percentage of each operating fund’s budget will be recommended to the Council for transfer.
Upon approval by the Council, the recommended amount will be transferred to the appropriate
funds (General or Utility Maintenance Replacement Fund) for major maintenance/ replacement of
street, building roof, flooring, air conditioning, equipment, etc.

The Town of Westlake owns, operates, and maintains a number of vehicles. To provide a fiscally
responsible vehicle and equipment replacement policy that enables the Town to maximize vehicle
and equipment utilization, while maintaining the Town’s desired public image and high-quality
program of services for our residents. Therefore, the Town of Westlake will maintain a Vehicle and
Equipment Replacement and Depreciation Schedule; said schedule will be maintained by the Finance
Department.

Vehicle and equipment replacement criteria will be developed according to each items anticipated
useful service life. Typically, this is based upon the type or “category” of the vehicle/equipment and
its usage. Each item will be surveyed annually and assigned a score based upon the Point Range and
Guideline document. A vehicle will be replaced according to the established criteria unless the
Department Head(s) and the Town Manager’s office determine that: 1) mechanical failure or vehicle
damage warrants earlier replacement, or 2) the vehicle is still serviceable and may serve additional
years beyond its original anticipated service life.

Funding for vehicle/equipment replacement should be incrementally allocated from department
operating funds to a restricted Capital Maintenance and Replacement Fund, subject to funding
availability on an annual basis. Future vehicle/equipment replacements should be funded from this
restricted fund, which receives accumulated operating fund transfers based upon the Vehicle and
Equipment Depreciation Schedule.

Funding will consist of an annual set-aside based upon a straight-line depreciation for each vehicle
over the course of its useful life and budgeted as part of the annual budget development process.

Depreciation fees should commence the same fiscal year of each new and replacement
vehicle/equipment purchase. Likewise, depreciation expenses should be expensed from the
respective department operating budget and deposited into the Capital Maintenance and
Replacement Fund. Depreciation expenses shall continue through the service life of the new
vehicle/equipment and shall cease upon retirement of said vehicle/equipment.

REPLACEMENT AND DEPRECIATION GUIDELINES

Purpose - To provide a fiscally responsible vehicle and equipment replacement and depreciation policy,
which will enable the Town of Westlake to maximize asset utilization while maintaining a positive
public image and being fiscally responsible in our budgeting and fleet replacement programs.

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