Baltimore’s Financing Model Slashes Fleet Replacement Backlog
(Read the entire Government Fleet article here)
The City has utilized the services of Mercury since 2010. After the firm conducted an initial fleet management best practices study in 2012, the City entered into a four-year consulting agreement for assistance in developing and implementing various improvements in the management and utilization of the fleet of more than 5,000 vehicles and pieces of equipment. The scope of Mercury’s services has included the following services:
- Developing a fleet modernization plan and business case analysis that was successful in securing senior management approval of a substantial ($15+ million) increase in annual fleet replacement funding and a change in replacement financing methods (from a reserve fund to a tax-exempt lease-purchase program);
- Conducting a fleet rightsizing study;
- Developing a new operating cost charge-back rate structure, rate model, and rates;
- Developing improvements to our repair parts inventory management processes; and
- Developing a new preventive maintenance (PM) program.
