City Manager Randy Oliver has been looking for ways to save the city money, much to the chagrin of some council members. He suggested outsourcing the city’s Fleet Management services — the mechanics who maintain and repair the city’s many and various vehicles, like fire engines and snow plows. This caused several council members to balk. It also made for a very stressful situation for the mechanics whose jobs were on the line and their families.
That may be coming to an end Tuesday night. The City Manager is recommending that Fleet Management be kept in-house. The reason? It’s not worth the money that would be saved by outsourcing (emphasis mine below):
Cities contract out services generally to reduce costs and/or improve services. Seeking proposals serves as a measure to compare costs between in-house and private service delivery. While a change in service delivery may be justifiable on the basis of any cost savings, as a practical matter, however, the cost savings should be sufficient to justify the organizational change.
The proposals from Penske Trucking and First Vehicle Services are both excellent proposals and would exceed all the City’s fleet maintenance requirements and provide a higher level of service. Based on the financial analysis, however, the improved services do not justify the additional cost in dollars and the organizational disruption caused by changing to a private contractor.
Thus, the recommendation is to reject all bids and keep things in-house. I can’t help but think that this could have gone either way, and what tipped it toward staying in-house was at least partially influenced by all the push-back from certain council members. Nevertheless, I’m glad to see the mechanics won’t be losing their jobs (assuming the council approves this action, which I have no doubt they will) and this will maybe cause considering some alternative ways to use vehicles, like marketing and advertising (somebody, call Fleet Wrap HQ, it’s finally the time!).