Governor Ernie Fletcher Orders Comprehensive State Vehicle Study
Fleet Inspections & Centralization are Keys

Frankfort, Kentucky (April 27, 2005) - Governor Ernie Fletcher announced today the first phase of an intensive review of the state’s vehicle fleet inventory. The Kentucky Transportation Cabinet will direct the effort to identify the most cost effective and efficient manner for managing the state’s fleet of vehicles.

“This process will provide us with a true assessment of the Commonwealth’s vehicle usage, which will help identify better fleet management strategies,” Governor Fletcher said.

“As my administration continues to increase the efficiency and effectiveness of government, it is essential to have accurate accounting of all state vehicles so we can fully utilize our resources while ensuring added value to Kentucky taxpayers.”

One initial element of this multi-step initiative to better manage the vehicle fleet is to conduct physical inspections of each state vehicle. A complete inspection process has not been undertaken before.

“Past administrations have struggled with accountability of the state’s motor pool, and it is time to achieve a full visual and physical inspection,” Acting Transportation Secretary Bill Nighbert said. “With her career in state government we welcome any input the State Auditor may want to provide in this inventory process.”

Excluding Kentucky State Police and university vehicles, Fleet Management is currently responsible for approximately 5,360 vehicles. Other state agency vehicles account for more than 1,600 additional vehicles.

Because it is responsible for the vast majority of state vehicles, Fleet Management leverages stronger negotiating positions on vehicle purchases, fuel purchases and maintenance costs. Upon completion of the inventory, all state vehicles with a gross weight of ¾ ton or less and all passenger vehicles will be centralized under the Division of Fleet Management.

Secretary Nighbert added, “With high fuel costs, vehicle maintenance costs and the overall cost of doing business, the fleet centralization is right the right thing to do.”

Over the past several months, the Division of Fleet Management has assumed responsibility for all Commerce Cabinet vehicles. The changes were made after Commerce Secretary Jim Host discovered more than a hundred state-owned vehicles in very poor condition and not safe for use. A few vehicles didn't’t have engines, and some were on blocks without tires and wheels.

Secretary Nighbert and Finance & Administration Cabinet Secretary Robbie Rudolph are also in the process of obtaining information regarding vehicles permanently assigned to individual employees.

“Governor Fletcher has directed us to find out where each vehicle is, who’s driving it and why,” Finance Secretary Robbie Rudolph said. And that’s what we’re going to do.”

The inventory begins next month and will be completed the end of June.

###

Additional information on this issue

What is the purpose of the Kentucky Transportation Cabinet’s Division of Fleet Management?

The Division of Fleet Management is responsible for all state-owned vehicles designated as ¾ tons or less and all passenger-carrying vehicles. The division maintains a statewide motor pool of vehicles for the purpose of providing safe, economical and essential vehicular transportation for all cabinets, agencies and other entities of state government. In addition, the division conducts the procurement, maintenance, repair and inventory for vehicles within the state motor pool. Vehicles may also be leased by any state agency.

What is the total number of vehicles in the state fleet? 9,909
Exempt by Statute (University and State Police Vehicles) Approximately 2,880

When will the statewide inventory begin? The process will begin in May 2005.

Who is conducting the inventory, and how long will it take to complete? The KYTC Division of Fleet Management is conducting the inventory, and the process will be complete by June 30, 2005.

What steps are taken to conduct the inventory? The Division of Fleet Management will send staff members to a central location within all 12 Transportation Districts throughout the commonwealth.

How much does this cost to conduct the inventory? Zero dollars. It is a part of the normal cost of doing business.

Overall Advantages:
The State Government fleet centralization initiative will allow the elimination of many tasks throughout state government and allow agency employees previously tasked with fleet responsibilities to focus on their core business. Fleet centralization also will result in stronger negotiating positions on vehicle purchases, fuel purchases, and maintenance costs. It will:

Centralization will allow state government to better manage its vehicle assets.
As the life cycle and age of the vehicles drop, the value of the vehicles at resale time will increase, bringing in more money to re-purchase replacement vehicles. This will mean less money from agencies to purchase vehicles. It also will improve the overall safety of all state vehicles.
Centralization will allow control of all vehicle inventory and costs. Experience in aspects across the automotive industry will increase efficiencies and lower management costs.
It will allow for the further reduction in state procurement cards initiated by the Commerce Cabinet.
Through centralization, Fleet Management will apply its mission statement across all state government vehicles to " provide safe, cost-effective, and essential vehicular transportation for a cabinet, agency, or other entity of the Commonwealth ..."

Success story:
Commerce Secretary Jim Host asked Fleet Management to look at its vehicles to determine if central management of their fleet of vehicles would result in cost savings. Fleet Management learned that past administrations did not have any maintenance records or know where their vehicles were located. Today, Fleet Management manages all Commerce Cabinet vehicles. It has identified, categorized and inspected all its vehicles. In less than one year, Fleet Management has replaced more than 100 Parks vehicles that were deemed unsafe or not road worthy. This could not have been accomplished without the inter-agency cooperation of the Commerce Cabinet and the Transportation Cabinet.