Bright Ideas: Replacement

Some bright ideas include a replacement plan based on priority, annual calculations of replacement points, and a cash-only plan.

June 2010, Government Fleet - Feature

by Staff

Cedar Rapids Replaces Based on Priority

The City of Cedar Rapids, Iowa, has implemented a replacement plan that controls its capital resource management. The plan looks at actual data to determine what vehicles and equipment are most costly and need to be replaced first for the greatest impact on budgets and operating costs. "Now we have a credible process that focuses on data and assists us in making decisions that are in the best interest of our city," said Dennis Hogan, fleet services manager.

Minnesota Manages Lifecycles

Before a vehicle is acquired for the Minnesota Department of Natural Resources, an annual use expectation and replacement plan (lifecycle) is established. Rates are set to ensure all annual operating costs are funded and replacement dollars in place at the end of its expected use. According to Dave Schiller, CAFM, department fleet, safety and materials manager, "A basic premise is that managing lifecycles to successfully time replacement is key to achieving our core values of safety, cost efficiency, and environmental responsibility." Every new unit provides a performance improvement opportunity, according to Schiller. Fleet reduced downtime, accidents, number of spares, and overall costs. Challenges of wide annual-use ranges are overcome by formulas pairing age/use parameters.

San Bernardino County Assigns Points

Vehicle replacement-point analysis (lowest average annual lifecycle cost by class) and customer charge rate calculations are performed annually in San Bernardino County, Calif. The goal is  balancing the most cost-effective vehicle age to funds required to purchase a new vehicle, according to Roger Weaver, CAFM, CPFP, CPM, director of fleet management. "We charge customers a monthly replacement fee to build those funds. The fund is currently fully funded at $7.7 million," said Weaver. "Our current calculated replacement point for full-size sedans, for example, is 5.5 years and the average age is 4.5 years, slightly better than ideal due to recent early turn-ins and selling the oldest vehicles in the class."

San Diego Uses Cash-Only Replacement System

In 2009, the City of San Diego Fleet Services Division, led by John Alley, CAFM, deputy director and Government Fleet's 2010 Public Sector Fleet Manager of the Year, implemented an approved cash-only vehicle replacement and financial plan for FY10 of 476 vehicles and $34 million.

Comment On This Story

Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All


Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All


Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Recent Topics

I am requesting feedback on how often you replace street sweepers? Also, when you surplus the old sweeper, what has brought you the...

View Topic

I m curious as to what other state or large law enforcement fleets use for fuel management systems. Thank you.

View Topic

Fleet Documents

1114 Fleet Documents (and counting) to Download!

Sponsored by

ZAP Jonway is a newly formed US-China automaker that states it is focused on commercializing cost-effective electric and advanced technology vehicles for global markets. 

Read more



Thi Dao
What Your Vehicles Say About Your Fleet

By Thi Dao
Your vehicles may paint a certain picture of the fleet and even the public agency. Is the picture a positive or a negative one?

Are Your Drivers Safe?

By Thi Dao

Managing a Police Fleet

How Chevrolet's Tahoe PPV Differs From its Retail Relative

By Michaela Kwoka-Coleman
For the Chevrolet Tahoe PPV, tires are added to the vehicles that are capable of handling speeds of up to 134 mph and the brakes are adjusted to handle frequent stopping at high speeds.

Police Vehicles Pushed to the Limit in California

By Paul Clinton

Next-Gen Fleet

Facundo Tassara
Streets of the Future Could Take Automatic Tire Readings

By Facundo Tassara
WheelRight allows vehicles to drive through a specialized lane and captures tire pressure readings on all four tires while also providing tire tread depth within a few seconds and printed receipt.

Improved Communication (There's an App for That)

By Facundo Tassara

Driving Notes

Chris Brown
Hyundai Ioniq Plug-in Hybrid

By Chris Brown
The Hyundai Ioniq Plug-in Hybrid is the least expensive model on the market to offer electric-only range, while offering spirited driving performance and plenty of standard features.

2018 Range Rover Velar First Edition

By Mike Antich

Nobody Asked Me, But...

Sherb Brown
Keep Realistic Fleet Expectations

By Sherb Brown
If you don’t stay on top of the latest developments in mobility, battery technology, autonomous vehicles, and telematics, you are subjecting yourself to the whims of senior management who may be making decisions based on the latest trendy news.

Fleet Management 2.0

By Sherb Brown