When a city decides to transition from decentralized to consolidated fleet management, the first step is to establish a Department of Fleet Services. Senior leadership—typically the city manager and/or mayor—should appoint a fleet manager and assemble a cross-functional team representing all key stakeholders. This team should have the full support of city administration.

Team members should include representatives from purchasing, finance, and major city departments that operate fleet vehicles. The team’s role is to:

1. Develop a strategy for consolidating fleet operations.
2. Collect and centralize data, including vehicle inventory, budget details, and staff certifications/training.
3. Review and develop relevant policies and procedures.
4. Set clear goals and objectives.

The group should also engage with internal fleet users to understand their needs. After gathering data and setting priorities, either the group as a whole or the fleet manager should determine vehicle replacement priorities (See example replacement priority list.).

MTAS (Municipal Technical Advisory Service) offers a vehicle replacement sample plan, which is similar to those used in Polk County, Florida, and listed on the American Public Works Association (APWA) website (www.apwa.net).

One of the biggest challenges cities face is initial funding. There are three primary options to start a vehicle replacement fund:

• Cash from the current budget
• Savings set aside for fleet replacement
• Borrowing (e.g., through lease-purchase or bonds)