Richmond is considering turning over its public vehicles to private maintenance and management.

The city called for information from private companies last week about theirinterest in taking over operation of the fleet of more than 2,400 vehicles, ranging from cars and light trucks to heavy equipment, fire engines and police cars. Richmond already outsources its supply of parts for city vehicles.

The outsourcing of fleet operations was a central recommendation of a report by City Auditor Umesh V. Dalal in May 2007. He estimated the potential savings at $2.6 million a year in fleet-management operations, which has an annual budget of more than $21 million that is paid through city agencies that require vehicle services.

City Councilman Douglas G. Conner Jr. said the cost savings could be much higher -- from $4 million to $6 million a year.

"We've been pushing for quite a while for them to get to the point of doing this," said Conner, who owns an auto-body repair business and visited an outsource fleet operation in Harford County, Md., last year with Dalal and Council President William J. Pantele.

"I think it could be a very good thing," he said yesterday.

Richmond Mayor L. Douglas Wilder said yesterday that he had inherited longstanding problems with the vehicle fleet. He said that under his administration, the city has cut the fleet by 500 vehicles, shaken up staff, and improved controls on vehicle use and fueling.

"The next phase, now under way, is to examine the feasibility of outsourcing fleet operations to achieve even greater efficiencies," Wilder said.

The request for information, released last Tuesday, sets a deadline of Aug. 15 for interested companies to respond.

The request gives potential bidders the option of continuing to use Richmond's maintenance facilities and staff, based primarily next to The Diamond on city-owned property that is considered vital to the redevelopment of North Boulevard as a sports, entertainment and mixed-use community.

Wilder has balked at moving the Parker Field maintenance facility because of the estimated $30 million cost.

Richmond employs 40 people for vehicle maintenance at the Parker Field complex and a secondary operations center on Hopkins Road in South Richmond.

"Alternatively, the contractor may use its own management team's separate facilities and personnel," the city request states.

Under a possible outsourcing arrangement, Richmond said it would continue to employ a fleet-operations manager and minimal staff to oversee and support the private operation.

The city would require the contractor to schedule work, manage supplies, recommend fleet changes, improve operating efficiency, monitor and contain costs, minimize the time vehicles are out of service and maintain a high level of customer service.

Services would include preventive maintenance, minor and major repairs, body repairs, and tire inspection and replacement.

The call to contractors also includes proposed performance standards that would tie full payment to meeting benchmarks. For example, the city would want 93 percent of all vehicles and equipment to be available for use at any time, and for 90 percent of all preventive maintenance to be completed within 48 hours of vehicle delivery.

The Richmond City Council has made clear its concern about the cost of fleet maintenance. It cut $1 million from the budget for fleet services last year and in the current budget.

However, Wilder has declared the council's approved budget to be invalid and has said he intends to cut $6 million; it is not clear whether his cuts will include fleet operations.
Contact Michael Martz at (804) 649-6964 or mmartz@timesdispatch.com.