FISCAL NOTE

Date Requested: February 23, 2017
Time Requested: 12:05 PM
Agency: Fleet Management, WV Office of
CBD Number: Version: Bill Number: Resolution Number:
2509 Introduced HB2004
CBD Subject: Finance and Administration


FUND(S):

2301 Travel Management (Fleet)

Sources of Revenue:

Special Fund

Legislation creates:

A New Program



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    REVISED
    The bill would change the focus of the Fleet Management Office from a service-oriented agency providing vehicle management services to an agency focused on collecting, analyzing and reporting data. The FMO is currently not structured in that manner, and would require additional staff as well as technology upgrades.
    
     FMO currently maintains a database of vehicles with detailed information, however it does not capture all of the data points required by the bill, specifically those relating to cost analysis of leasing or employees using personal vehicles versus agency vehicles.
    
     The bill would also expand FMO's current jurisdiction of vehicles 1-ton and under (excluding ATVs or vehicles requiring a CDL to operate) to the entire universe of state-owned and personal vehicles used by state employees, including specialty vehicles, trailers, heavy equipment, and personal vehicles of employees, etc. The expansion of authority and responsibility would add at least 5,000 more vehicles to FMO's purview. This expansion results in additional data collection of more than 6,000 records PER MONTH for fuel utilization alone, in addition to personal vehicle use mileage reimbursement records and maintenance events that are outside of the maintenance services provide through FMO. The increase in data collection and processing along requires either additional staff to handle those duties or overtime, if authorized.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 458,500 458,500
Personal Services 0 266,500 266,500
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 192,000 192,000
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


     If the legislation is implemented, FMO would seek to add 7 FTEs for data entry and analysis (3 ASA 1s at a base salary of $35,000, and 4 OA 3s at a base salary of $25,000, plus 30% for benefits at a total cost of $266,500 per fiscal year).
    
     The additional data points to be collection would likely result in an increase the projected cost of the database, but FMO is unable to quantify that cost at this time, but has estimated an additional $192,000. This is based upon an additional charge of $1.33 per vehicle per month for an estimated 12,000 records, if required to be maintained in the centralized inventory system.
    
     FMO invoices agencies for services provided, and the monthly fee collected is based upon the cost of services provided. Currently, FMO bills agencies $12 per month per vehicle for use of the fuel and maintenance services. Agencies that utilize vehicles in their missions are spread across both general and special revenue, and those agencies will see an increase in their expenditures due to the monthly fee billed by FMO for use of their vehicles, therefore an increase in those budgets. It is likely that the agencies currently paying a monthly fee to FMO for services will not see an increase in the monthly fee, or perhaps a reduction. However, an additional estimated 5,000 vehicles are not currently being invoiced for services will incur that expense with the passage of the bill. Some of the additional vehicles will not have charge for fuel services, such as trailers, however, will have a charge for maintaining the record in the centralized inventory system. FMO suggests a one-time improvement to its budget for FY 2018 of $450,000 to cover the increased cost of requirements, and FMO can begin collecting a higher fee from agencies to absorb the additional cost. After FY 2018, the $450,000 can be allocated through the budget across agencies that utilize vehicles to defray the additional expense they will incur from fees payable to FMO.



Memorandum


    If it is not required to maintain the records of the vehicles over one ton (plus vehicles requiring a CDL) in the centralized vehicle inventory system, the Fleet Management Office could maintain these records separately in a spreadsheet, and avoid costs associated with maintaining the record in the centralized vehicle inventory system.



    Person submitting Fiscal Note: Jennelle H. Jones
    Email Address: jennelle.h.jones@wv.gov