The Fayetteville (N.C.) Public Works Commission, which provides maintenance services to all the municipal fleet vehicles, has been charging the city up to 44% in markup and administrative charges to service the city's vehicles, according to an internal audit.
The charges, which are on top of the costs for performing maintenance and repairs, cost the city $1.4 million in fiscal 2014 and $1.1 million through the first eight months of this fiscal year. The city pays $61.13 per hour for labor. Since 2011, the city has paid an average of $4.9 million annually to the PWC to repair and maintain its vehicles.
City Councilman Mitch Colvin told the Fayetteville Observer the audit was eye-opening and said the markup costs are "just astronomical" and unacceptable. A spokeswoman for the commission told the media outlet several issues identified in the audit were being addressed in a new fleet maintenance agreement.
The audit also determined that the commission uses the FASTER software system and does not provide the city documentation supporting the billed costs. The commission provides limited access to the software system.
The audit studied four fiscal years from 2011 to 2014 during which the city averaged $4.9 million for fleet expenditures. The city projects $6.1 million for fleet costs in the 2015 fiscal-year budget.
Other concerns raised by the audit focused on preventive maintenance costs, vehicle downtime, and quality of work.