DAR File No. 27543

Administrative Services, Fleet Operations

R27-4

Vehicle Replacement and Expansion of State Fleet

NOTICE OF PROPOSED RULE

DAR File No.: 27543
Filed: 11/15/2004, 07:26
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment establishes procedural and financial requirements when agencies place a vehicle currently identified as "do not replace" into a replacement cycle, and in cases when agencies request an upgrade to a vehicle that is currrently on a replacement cycle.

Summary of the rule or change:

Changes to Section R27-4-5 would subject the placement of a "do not replace" vehicle into a replacement cycle to the same requirements as obtaining an expansion vehicle. The changes would require prior legislative approval and the transfer of funds necessary to make the Division of Fleet Operations (DFO) whole with regard to uncollected depreciation stemming from the vehicle's "do not replace" status. Changes to Section R27-4-8 would require agencies that are upgrading vehicles currently on a replacement cycle to make DFO whole by providing funds sufficient to cover the depreciation still owed on the current vehicle plus the difference in cost between the actual vehicle to be purchased and the vehicle that was supposed to replace the current vehicle.

State statutory or constitutional authorization for this rule:

Section 63A-9-401

Anticipated cost or savings to:

the state budget:

Aggregate anticipated costs or savings to the budget are unknown. It is anticipated that there will be additional costs if agencies either place a "do not replace" vehicle on a replacement cycle or upgrade an existing vehicle mid-term. Exercising either option is in the hands of the agencies and the extent to which agencies will exercise the option is unknown.

local governments:

There is no anticipated costs or savings to local governments. The proposed amendment only affects state agencies.

other persons:

There is no anticipated costs or savings to other persons. The proposed amendment only affects state agencies.

Compliance costs for affected persons:

There are no anticipated compliance costs for affected persons. The proposed amendment only affects state agencies.

Comments by the department head on the fiscal impact the rule may have on businesses:

The fiscal impact that the rule changes may have on business are unknown. The rules could have a negative impact on businesses if the rules erect a barrier sufficient to dissuade agencies from either placing a "do not replace" vehicle on a replacement cycle or from purchasing a more expensive vehicle in order to upgrade an existing one. On the other hand, there may be a positive impact on businesses should agencies decide to exercise either option and thereby either purchase a new vehicle or a more expensive vehicle.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Sal Petilos at the above address, by phone at 801-538-3091, by FAX at 801-538-3844, or by Internet E-mail at spetilos@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/03/2005

This rule may become effective on:

01/04/2005

Authorized by:

Steve Saltzgiver, Director

RULE TEXT

R27. Administrative Services, Fleet Operations.

R27-4. Vehicle Replacement and Expansion of State Fleet.

R27-4-5. Fleet Expansion.

(1) Any expansion of the state motor vehicle fleet requires legislative approval.

(2) The agency requesting a vehicle that will result in fleet expansion or that a vehicle currently designated "do not replace" be placed on a replacement cycle, shall be required to provide proof of the requisite legislative approval and funding for the procurement of an expansion vehicle or the placement of a "do not replace" vehicle on a replacement cycle, and any additional features and miscellaneous equipment, before DFO is authorized to purchase the expansion vehicle.

(3) For the purposes of this rule, an agency shall be deemed to have the requisite legislative approval under the following circumstances only:

(a) The procurement of expansion vehicles or the placement of a "do not replace" vehicle on a replacement cycle is explicitly authorized by the Appropriations Committee during the general legislative session; or

(b) The procurement of expansion vehicles or the placement of a "do not replace" vehicle on a replacement cycle is explicitly authorized by a special session of the legislature convened for the express purpose of approving fleet expansion.

(4) For the purposes of this rule, only the following shall constitute acceptable proof of legislative approval of the requested expansion or placement of a "do not replace" vehicle on a replacement cycle:

(a) A letter, signed by the agency's Chief Financial Officer, citing the specific line item in the appropriations bill providing said authorization; or

(b) Written verification from the agency's analyst in the Governor's Office of Planning and Budget (GOPB) indicating that the request for expansion was authorized and funded by the legislature.

(5) Upon receipt of proof of legislative approval of an expansion from the requesting agency, DFO shall provide to the State Division of Finance copies of the proof submitted in order for the Division of Finance to initiate the process for the formal transfer of funds necessary to procure the expansion vehicle(s) from the requesting agency to DFO. In no event shall DFO purchase expansion vehicles for requesting agencies until the Division of Finance has completed the process for the formal transfer of funds.

(6) In the event that the requesting agency receives legislative approval for placing a "do not replace" vehicle on a replacement cycle, the requesting agency shall, in addition to providing DFO with proof of approval and funding, provide the Division of Finance with funds, for transfer to DFO, equal to the amount of depreciation that DFO would have collected for the number of months between the time that the "do not replace" vehicle was put into service and the time that the requesting agency begins paying the applicable monthly lease rate for the replacement cycle chosen. In no event shall DFO purchase a replacement vehicle for the "do not replace" vehicle if the requesting agency fails to provide funds necessary to cover said depreciation costs.

([6]7) When the expansion vehicle is procured, the vehicle shall be added to the fleet and a replacement cycle established.

([7]8) DFO is responsible for insuring that the state motor vehicle fleet complies with United States Department of Energy alternative fuel vehicle (AFV) mandates. DFO may require that a certain number of expansion vehicles, regardless of the requesting agency, be alternate fuel vehicles to insure in compliance with said AFV mandates.

R27-4-8. Vehicle Class Differential Upgrade.

(1) For the purposes of this rule, requests for vehicles other than the planned replacement vehicle established by DFO after reviewing the recommendations of the Fleet Vehicle Advisory Committee (FVAC), that results in an increase in vehicle cost shall be deemed a vehicle class differential upgrade. For example, a vehicle class differential upgrade occurs when, regardless of additional features and/or miscellaneous equipment:

(a) The replacement vehicle requested by the agency, although within the same vehicle class as the vehicle being replaced, is not the standard replacement vehicle established by DFO for that class.[ For example, an agency requests a Ford Focus instead of a Chevrolet Cavalier, the standard vehicle in the compact sedan class for FY 2001.]

(b) The agency requests that a vehicle be replaced with a more expensive vehicle belonging to another class. For example, when an agency requests to have a standard 1/2 ton truck replaced with a standard 3/4 ton truck, or a compact sedan be replaced with a mid-size sedan.

(2) Requests for vehicle class differential upgrades shall be made in writing and:

(a) Present reasons why the upgrades are necessary in order to meet the agency's needs, and

(b) Shall be signed by the requesting agency's director or the appropriate budget or accounting officer.

(3) All requests for vehicle class differential upgrades shall be subject to review and approval by the Director of DFO or the director's designee. Vehicle class differential upgrades shall be approved only when:

(a) In the judgment of the Director of DFO or the director's designee, the requested vehicle upgrade is necessary and appropriate for meeting the demands of changing operational needs for which the planned replacement vehicle is clearly inadequate or inappropriate;

(b) In the judgment of the Director of DFO or the director's designee, the requested vehicle upgrade is necessary and appropriate for meeting safety, environmental, or health or other special needs for drivers or passengers.

(4) Agencies may petition the Executive Director of the Department of Administrative Services, or the executive director's designee, for a review in the event that the Director of DFO or the director's designee denies a request for a vehicle class differential upgrade.

(5) Agencies obtaining approval for vehicle class differential upgrade(s) at the end of the applicable replacement cycle shall pay to DFO, in full, prior to the purchase of the vehicle, a vehicle class differential upgrade rate designed to recover the difference in cost between the planned replacement vehicle and the actual replacement vehicle when the replacement vehicle is a more expensive vehicle belonging to the same or another class.

(6) Agencies obtaining approval for vehicle class differential upgrade(s) prior to the end of the current vehicle's replacement cycle shall, prior to the purchase of the replacement vehicle, pay to DFO, in full, an amount equal to the difference in cost between the actual replacement vehicle and the planned replacement vehicle plus the amount of depreciation still owed on the vehicle being replaced, less the salvage value of the vehicle being replaced.

KEY: fleet expansion, vehicle replacement

[December 19, 2003]2005

63A-9-401(1)(a)

63A-9-401(c)(v)

63A-9-401(c)(ix)

63A-9-401(c)(xi)

63A-9-401(c)(xii)

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Sal Petilos at the above address, by phone at 801-538-3091, by FAX at 801-538-3844, or by Internet E-mail at spetilos@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.