Fleet Services provides responsive and efficient fleet management services to City Programs and Agencies to maximize safety and environmental sustainability and minimize lifecycle costs.

Budget Notes

Fleet Services provides responsive and efficient fleet management services to City Programs and Agencies that maximizes safety and environmental sustainability and minimizes lifecycle costs.

View the Fleet Services Program Map in greater detail.

Fleet Services provides responsive and efficient fleet management services to City Programs and Agencies to maximize safety and environmental sustainability and minimize lifecycle costs.

2018 Budget Summary

The total cost to deliver these services to Toronto residents is $57.739 million gross and ($0.130) million net.

The 2018 Operating Budget of $57.739 million gross is $3.532 or 6.5% million over the 2017 Approved Budget, primarily attributable to an increase in fleet maintenance costs and demand for fuel from client Programs which is fully offset by increased inter-divisional recoveries.  The net expenditure reduction of $0.120 million is due to savings identified from implementing service efficiency strategies.

Fast Facts

  • Manage 5,500 vehicles and equipment for City of Toronto Divisions and Agencies.
  • Manage the fueling needs of over 7,100 assets located throughout the City.
  • Distribute 15.5 million litres of fuel to City Programs and Agencies.
  • Dispense fuel to the City’s vehicles throughout 23 fuel sites across the City.
  • Manage the Capital replacement plan for all City fleet, except TTC and Police.
  • Foster and continue to lead the City-wide Green Fleet Plan that encompasses all City fleets, including TTC, Police and Agencies.
  • Maintained a satisfactory Ontario Commercial Vehicle Operators Registration (CVOR) safety rating for the City’s Fleet of 35% as of November 2017 (a lower number is better).

Trends

  • The average age of vehicles and equipment has increased beyond the optimum lifecycle in some classes. The average age is expected to gradually decline starting 2018 to 7.50 years by 2020 as funding for fleet replacement increases.
  • Maintaining the optimum vehicle and equipment age ensures safety and reduces the escalating cost of repairs and maintenance.

Key Service Deliverables for 2018

The 2018 Operating Budget will enable Fleet Services to:

  • Provide a full‐range of fleet management services for City Divisions and Agencies.
  • Direct the lifecycle management of the City’s fleet including the acquisition, maintenance and disposal of vehicles and equipment based on lifecycle and operational analysis.
  • Ensure compliance with Provincial legislation and City policies and guidelines.
  • Provide safety training, testing and certification to approximately 11,000 City employees who are required to operate City vehicles and equipment.
  • Oversee and direct the City’s fuel management operations, including, safety and compliance management, staff training and the associated management of fueling stations and the fueling of over 7,100 assets.
  • Work closely with client Programs to optimize fleet size through ensuring that all vehicles are required and fully utilized.
  • Provide leadership in reducing the environmental impact of the City’s fleet operations through the City’s 2014 ‐ 2018 Consolidated Green Fleet Plan.
  • Provide permanent opportunities combined with a multi-faceted approach that includes training and apprentice programs; to attract, develop and retain fully qualitied and knowledgeable staff.
  • Enhance service delivery by adopting leading fleet practices, including Reliability-Centered Maintenance practices to improve Preventative Maintenance execution, and reduce downtime and costs.

Our Key Issues & Priority Actions

  • Cost & Financial Management
    • Capital reserve contribution shortfalls, vehicle reserve backlogs and associated impact of maintaining past-optimum life assets
  • Structure & Staffing
    • Significant challenges attracting and retaining fully qualified and knowledgeable staff due to an industry-wide shortage of skilled trades, combined with niche occupation requirements
  • Facilities
    • Aging and insufficient work space no longer meets the changing needs of today’s vehicles and equipment and best practice work methods
  • Operational and Business Processes
    • Fleet Management Information System (FMIS) data capture and data management needs improvement
    • Data driven – continue to improve foundational metrics, performance measures and management reports
    • Continue to improve service delivery through a reliability-centered maintenance approach to improve Preventative Maintenance execution (PM vs Non-PM repairs) and reduce downtime through a refocusing of internal resources

2018 Operating Budget Highlights

  • The 2018 Operating Budget of $57.739 million gross and ($0.130) million net expenditures provides funding for two services: Fleet Management and Fuel Management.
  • Fleet Services has over-achieved the 0% budget target through the following service efficiency strategies:
    • Savings in the second year of implementation of the Alternate Service Delivery model for vehicle maintenance by contracting out preventative maintenance for Class 1 & 2 ($0.469) million
    • Mitigation of the budget impact from the provincially mandated Cap & Trade Program by effective fuel hedging ($0.353) million
    • Cost reduction from improving the parts warranty management and core returns process to ensure warranties are maximized ($0.100) million
    • Adopting a new tire management strategy by implementing a tire retreading process for heavy vehicles/equipment ($0.060) million
    • Effective contract management to meet client division needs, while mitigating risk and ensuring that value for money is obtained by the City ($0.035) million
  • Staff complement will increase by 1.0 position from 2017 to 2018

Fleet Services provides range of services, from acquisition to maintenance and disposal, for a diverse fleet of over 5,500 vehicles and equipment. Fleet Services also oversees 23 City‐owned fuel sites and the associated fueling of over 7,100 assets, trains City vehicle and equipment operators and manages and monitors approximately 11,000 associated operator permits to ensure safe vehicle & equipment operation.

The 10‐Year Capital Plan of $709.080 million provides funding for the replacement of vehicles and equipment, utilized by City Programs and Agencies, excluding Toronto Police Service Board and Toronto Transit Commission. Fire Services, Toronto Paramedic Services and Toronto Zoo are part of the Fleet Services’ Capital Plan but these Programs and Agencies manage their own fleet replacements. The 10-Year Capital Plan also includes funding for the Consolidated Green Fleet Plan, Fuel Site closures and the Fuel Management System projects.

The 2018 – 2027 Capital Plan is primarily funded from Program/Agency-specific Vehicle and Equipment Replacement Reserves to which annual contributions are made by respective Programs and Agencies through their Operating Budget.

Where the money goes:

The 2018 – 2027 Capital Budget and Plan totalling $709.080 million provides funding for:

  • Health and Safety projects of $0.315 million for Fleet Garage Security;
  • Legislated projects that represent $1.600 million for the Consolidated Green Fleet Plan;
  • Service Improvement projects that total $4.869 million including Fuel Site Closures, Fleet Management System integration with the Fuel Management System, and Fleet At-large Purchases; and
  • State of Good Repair (SOGR) projects of $702.296 million to replace existing vehicles and equipment.

Where the money comes from:

The 10-Year Capital Plan is funded by two major sources:

  • Vehicle and Equipment Replacement Reserves will provide $708.924 million of the required cash flow funding.
  • Other Revenues consisting of Library Foundation donations for the replacement of Bookmobiles will provide $0.156 million of the required cash flow.

State of Good Repair Backlog

The 10-Year Capital Plan includes cash flow funding of $702.296 million for State of Good Repair to address the City’s fleet replacement backlog. The SOGR backlog as a % of asset replacement value will decrease from 16.0% in 2018 to 6.6% in 2027 based on planned investment.

Our Key Issues & Priority Actions

  • Capacity to Spend and Readiness to Proceed play a vital role when analyzing the Program’s spending rate which has averaged 67.2% with noticeable improvement in the last 3 years.
    • Projects included in the 10-Year Capital Plan have been reviewed and reprioritized and cash flows have been amended after taking vehicle delivery plans into consideration.
  • SOGR Backlog and Financial Management Ensuring the City’s fleet SOGR backlog is reviewed and updated; Vehicle and Equipment Replacement Reserves are adequate for the timely replacement of vehicles; and managing the associated impact of maintaining assets which are past optimum life.

2018 Capital Budget Highlights

The 2018 Capital Budget for Fleet Services of $74.406 million, excluding carry forward funding, will:

  • Provide Health and Safety for Fleet Garage Security ($0.105 million);
  • Continue the Consolidated Green Fleet Plan ($0.200 million);
  • Contribute to the state of good repair of the City’s fleet through the replacement of vehicles ($71.032 million), for the programs including but not limited to the following: Solid Waste ($27.701 million), Toronto Water ($8.737 million), Parks, Forestry & Recreation ($8.122 million), Fire Services ($10.903 million), and Transportation ($5.488 million); and
  • Continue fleet service improvements through enablement of projects ($3.069 million) including the Fleet Management System and Fuel System Integration project ($1.800 million), City Fuel Site Closures and upgrades ($0.700 million), and Fleet At-large Purchase ($0.570 million).