City of Troy Adds 2 Insourcing Contracts

December 23, 2010

TROY, MI - The council for the City of Troy unanimously approved on Dec. 13 two insourcing contracts for fleet maintenance. The City of Troy Fleet Division began maintenance on an as-needed basis for the neighboring cities of Oak Park and Rochester, according to Sam Lamerato, CPFP, fleet maintenance superintendent, City of Troy.

Troy Fleet Division currently insources repair and maintenance work for nine government entities on an as-needed basis and is talking with two additional agencies — a municipality and a federal government agency, Lamerato said. The City began insourcing fleet maintenance eight years ago with work from the City of Clawson. Word of mouth spread, and as neighboring cities reduced their fleet maintenance staff, they approached the Troy Fleet Division to inquire if the City could help with their fleet maintenance needs.

In addition to the nine as-needed maintenance contracts, City of Troy Fleet Division is responsible for more than 500 City-operated vehicles and pieces of equipment. Fleet maintenance consists of eight technicians and three service technicians, and the City has two facilities. Last year, the City insourced just under $500,000 worth of work from seven government entities, according to Lamerato.

The agreements generate outside revenue and maximize the use of Troy facilities and staffing. At this time, no additional staffing is required as there is capacity in the facility to take on the additional work. The hourly repair cost charged to Rochester and Oak Park is the fully burdened shop rate. The City manager stated that the City will hire additional technicians if fleet maintenance continues to add additional insourcing contracts.

Troy also leases a mid-size sedan to the City of Clawson, used in its Parks and Recreation program. The annual contract, in its fourth year, covers fuel and all repairs, which helps the City of Clawson maintain a flat line vehicle expense for budgeting purposes.

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