Government of the District of Columbia DC Department of Public Works

Testimony of
William O. Howland Jr.
Director

DPW Vehicle Testimony
COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION
Tommy Wells, Chairperson

John A. Wilson Building
1350 Pennsylvania Avenue, NW
Washington, DC 20004

Thursday, March 17, 2011, 10 am

Introduction

Good morning Chairman Wells, committee members and staff. I am William O. Howland Jr., Director of the Department of Public Works. I appreciate this opportunity to discuss the District’s fleet acquisition and management programs under the direction of the Department of Public Works.

Before I get too far into my testimony, I want to state that DPW leases and purchases vehicles in compliance with both federal and District law and regulations. Vehicle acquisition is handled by DPW’s Fleet Management Administration (Fleet or FMA).

The mission of the Department of Public Works is to provide environmentally healthy municipal services that are both ecologically sound and cost effective. To that end, DPW serves all District residents, businesses, visitors and commuters by providing:

• Trash, recycling and litter collection and disposal.
• Street and alley cleaning.
• Solid waste education and enforcement.
• Snow removal.
• Parking enforcement, including towing, booting and removing abandoned vehicles.
• Fleet management, including acquisition and disposal, fueling, and vehicle maintenance services.

The Fleet Management Administration fits into the larger mission of DPW by providing a fleet that is appropriate for the service delivery needs, well maintained, environmentally responsible and cost effective.

DPWs Fleet Management Administration provides maintenance to all District Government agencies’ vehicles except MPD, Fire and Emergency Services, DC Water and Office of State Superintendant for Education. However, DPW does fuel all government vehicles.

The District’s fleet has been recognized as the 8th greenest by Government Fleet magazine for the implementation of our green fleet programs, including our extensive use of alternative fuel vehicles and the DC Fleet Share motor pool program.

I would like to add that DPW is the pioneer among government fleet managers in the use of the Zip Car (Fleet Share) vehicle reservations model. Through its use, we have transformed our motor pool operation, increased vehicle productivity and reduced those annoying circumstances that plague shared-used vehicles.

Our success is recognized widely among government fleet operators who seek our advice about adapting their own motor pool operations to achieve similar results. Our next step is to add an all-electric vehicle to the Fleet Share pool.

Today, I will discuss the legal foundation for DPW to manage the District’s fleet; federal and local Compliance; purchasing and leasing of vehicles; payment for lease vehicles; and agency responsibility.

Legal Foundation for DPW to Manage the District’s Fleet

Mayor’s Order 2000-75 assigned fleet management responsibilities to DPW. This means that all DC government agencies under the Mayor’s authority, except for the Metropolitan Police Department, Department of Corrections, and Fire and Emergency Medical Services, are required to have DPW acquire their vehicles.

Further clarification was provided through Mayor’s Order 2009-160, which addresses how agencies are to manage access to vehicles, ensure drivers are eligible to operate a DC government vehicle and offer guidance regarding accident/incident reporting.

As the agency authorized to manage the District’s fleet, DPW is required to comply with not only District requirements but also federal requirements.

Federal requirements are for 75 percent of a state jurisdiction’s light duty vehicles to consist of alternative fuel vehicles. Light duty vehicles are defined as having a gross vehicle weight rating of 8,500 pounds or less. Exempted from this requirement are vehicles acquired for emergency use, law enforcement vehicles and non-road vehicles. This requirement applies to both purchased and leased vehicles.

Since the US government began requiring state fleet operators to meet this requirement, I am happy to say that DPW has been in compliance every year.
The types of vehicle that are in compliance with the federal requirements are vehicles fueled by Biodiesel (B-20 or greater), Compressed Natural Gas (CNG), Electric, E-85 (85% Ethanol), Hydrogen, and Propane. Please note that Hybrid vehicles are not considered alternative fuel vehicles for the purposes of complying with the US Department of Energy.

There are two DC laws that apply to DPW when purchasing or leasing vehicles: DC Code 50-203 EPA Miles Per Gallon and Restrictions on Use of Sport Utility Vehicles and the DC Municipal Regulations, Title 27-2116 Leasing of Motor Vehicles.

DC Code 50-203 requires the District government to purchase or lease vehicles that meet the Environmental Protection Agency estimated miles per gallons average not less than 22 miles per gallon. It further states that the District Government shall not purchase SUVs for governmental use; provided that this section shall not apply to security, emergency, rescue, snow removal or armored vehicles.

DCMR 27-2116.2(b) requires that the requesting agency has certified that any requested passenger automobile (sedans and station wagons) that are larger than compact size are essential to the agency’s mission.

Since 2004, DPW has purchased over 1000 light vehicles. The majority of those purchases have been sedans. Every sedan that has been purchased is in compliance with either the federal requirements and/or both local laws except for one 2006 Ford Crown Victoria.

Many of the vehicles that were purchased are compact cars and are fueled by CNG. Almost all of the rest of the sedans purchased are fueled by E-85 and meet the federal requirements. Typically, DPW purchased or leased Chevy Impalas, which are mid-size vehicles. It is important to note that E-85 vehicles have only been available as midsize sedans, vans or trucks but not as compact vehicles.

All of the rest of the vehicles in the light vehicle category are either mini vans, vans or pick-up trucks. Most of these vehicles are fueled by E-85. Those that are fueled by either unleaded gasoline or diesel were purchased in sufficiently low numbers, therefore, DPW was able to stay within compliance of the 75% rule of alternative fuel purchases.

DPW adheres to the same federal and local laws when leasing vehicles. Most of the vehicles leased are fueled by E-85 and are mid-size sedans, mini vans, vans or pick-up trucks.

Alternative Compliance

Compliance with the federal requirements can be achieved in one of two ways. One way is through standard compliance – which means that 75% of the fleet is alternative fuel vehicles. The other way is through alternative compliance.
Alternative compliance allows states to reduce petroleum consumption in lieu of acquiring alternative fuel vehicles and using biodiesel blends and/ or credits under the Standard Compliance requirements.
Fleets submit to the U.S. Department of Energy information on petroleum reduction requirements and plans to meet those reductions.
These measures include the use of hybrid electric or other energy-efficient conventional fuel technologies. Under standard compliance,
no credit is given for the use of hybrid vehicles. Under alternative compliance, credit is given for petroleum reduction in the model year efficiencies occur.
Under alternative compliance, credits are given for alternative fuel on gasoline gallon equivalent (GGE) basis for light duty vehicles and medium and heavy-duty alternative fuel vehicles. Under standard compliance, credits for medium and heavy duty alternative fuel vehicles are not given until the light duty alternative fuel requirements have been met.
Biodiesel blends, vehicle miles travel reduction and idle reduction are credited on a GGE basis under alternative compliance. There are no credits for these methods under standard compliance
The District switched to alternative compliance in 2009 because we were able to meet fuel reduction requirements.
Purchase of SUVs

Since 2004, only 10 SUVs have been purchased /leased through DPW. All of the SUVs acquired are in compliance with DC Code 50-203.

• UDC – 3 for security
• HSEMA – 2 Emergency
• DPW – 1 Snow Program
• DDOT – 1 Snow Program
• City Administrator Tangherlini/Albert – 1 Emergency
• Chairman Gray – 1 Emergency
• Chairman Brown – 1 Emergency

Purchasing and Leasing Vehicles

The preferred method of acquiring vehicles is to purchase the vehicles rather than to lease them.

DPW, the Department of Transportation, MPD and Fire/EMS have funds allocated in the capital budget to purchase vehicles in a comprehensive manner that includes a regular replacement schedule. Each of these agencies provides services that are vehicle-dependent. DPW cannot work without trash trucks. MPD cannot operate without squad cars. DDOT must have vehicles for street repair. Fire/EMS without fire trucks is impossible.

Due to budget issues, the District has not been able to stick to its regular replacement cycle, but once the financial issues are resolved, we will resume this regular acquisition/replacement cycle.

The other agencies acquire their vehicles through operating funds and/or grants.

If an agency has a grant, there may not be sufficient funding to purchase a $20,000 to $25,000 vehicle. The lease becomes a viable option because the grant may provide for the lease of a vehicle for the life of the grant. And, the grant may last only two or three years.

All of the leases are structured for one year with options to renew the lease for additional years in one year increments. Each year the rate of the lease decreases. If an agency were to lease the vehicle for three or four years, the average rate over the time period would be equivalent to what a normal consumer would pay to lease the vehicle, if not better.

The advantage to this type of lease arrangement is that at the end of the one year term, the District Government can terminate the lease with no penalty. Reasons an agency may have for terminating the lease after one or two years are that the grant may expire, the agency may be downsizing or the agency may want to use its funds differently. The disadvantage is that the agency pays substantially more in the first year, but if the agency keeps the vehicles it evens out over time.

DPW’s lease rates are competitive and in most cases are better than the GSA rates. DPW has recently solicited for new lease rates for the next five years. That contract award is with the Office of the Attorney General and will be forwarded shortly to the City Council for approval.

Payments for leased vehicles

DPW is invoiced for vehicles monthly. Staff reviews the invoice and pays the invoice each month. A bill is sent to the agency that is leasing the vehicle and reimburses DPW for the payment that was made. DPW should only pay for one month’s lease at a time.

Unfortunately, an error was made in the payment to Standard Leasing. Standard Leasing invoiced DPW for the remaining months in the fiscal year and DPW processed the payment. DPW should have noted the incorrect billing and paid for only one month at a time.

We have checked how we are paying our leases and all of the other leases are being processed and paid monthly. We currently process nearly 200 lease payments per month correctly. Unfortunately, we did not process Standard Leasing’s invoice correctly.

AGENCY RESPONSIBILITY

As noted above, Mayor’s Order 2000-75 and 2009-160, clearly set forth agencies’ responsibility for acquiring and managing their fleet. Mayor’s Order 2000-75 indicates that agencies are to acquire vehicles through DPW.

Mayor’s Order 2009-16 requires agencies to implement and maintain a system of managing the use of vehicles that ensures safe operation of government vehicles; maximum compliance with laws and regulations governing operation of any vehicle; accountability of operators for notices of infraction received as a result of operating any vehicle on government business; complete knowledge of the nature of vehicle assignments and custody; and appropriate operator qualifications and training for vehicles operated.

Government vehicles are subject to parking and photo enforcement tickets just as any other vehicle. A government vehicle is exempted from parking meters and Residential Parking Permit (RPP) fines. All other parking and operating restrictions apply to government vehicles (i.e.; fire hydrants, crosswalks, rush hour, red lights, speed limits, etc.).
Agencies are responsible for knowing who the driver is and making the driver adjudicate and/or pay for the violation. Government funds are not permitted to be used to pay for parking and photo radar/red light violations.

Agencies are supposed to register each vehicle in their fleet with the government fleet program with the Department of Motor Vehicles. As a part of the program, agencies receive access to the ticket database so they can check the status of outstanding tickets in real time.

Agencies that register in the government fleet program also receive monthly fleet reports of outstanding tickets.

DPW has held meetings with other agencies, and agencies have expressed frustration in the lack of available tools to make employees pay outstanding violations. Agencies have expressed interest in the ability to garnish wages when an employee fails to pay an outstanding ticket.

DPW attempts to hold agencies accountable by conducting an annual fleet audit. Every January, DPW send each agency a list of vehicles that are registered in their fleet. The agency must verify that they still have the vehicle or have disposed of the vehicle.

In addition, the agency is to suppose to add vehicles that are not included on the DPW’s registry.