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City staff propose predictable fleet-replacement plan to cut maintenance costs
Summary
Public Works staff presented a plan to replace vehicles on a predictable schedule using predictive analytics and to sell equipment earlier to reduce total ownership costs. Council asked staff for detailed auction and purchase data before deciding whether to adopt a new policy.
Public Works staff presented a proposal at the Jan. 21 Newberg City Council meeting to change the city’s vehicle-replacement policy from “run it until it dies” to an approach that replaces vehicles by optimal age, mileage and predictive analytics.
The Planning and Public Works presenter, Preston, described the proposal as a way to “maximize our total cost of ownership.” He said the city could reduce maintenance, warranty claims and downtime by selling vehicles earlier while they still retained auction value and by using predictive analytics to time replacements.
Why it matters: the change would shift purchases into a planned replacement schedule that staff say will lower monthly ownership costs, reduce emergency repairs, and let the city leverage auction proceeds to offset future purchases. Staff also proposed creating a unified fleet fund so vehicle sales and purchases are tracked in a single account rather than across multiple departmental budgets.
Preston walked council through examples comparing a 2015 Chevrolet half‑ton pickup that the city bought for $29,300 and later sold for roughly $13,000 under the existing practice with a hypothetical 2019 replacement schedule that produced a lower nine‑year cost. “The proposed strategy that we would like to use is optimal vehicle replacement and predictive analytics,” Preston said.
He said the city currently sells surplus vehicles through an online public auction provider to meet municipal purchasing rules and that the city’s code limits disposal options. Staff said auction returns vary by time of year and condition; they called the city’s auction contract lower‑effort but noted it yields less hands‑on preparation of vehicles before sale.
Councilors pressed for supporting data. Councilor Kilburn asked several detailed questions about the depreciation assumptions and the nine‑year comparisons. Preston replied the analysis used market sites including Kelley Blue Book, AutoTrader and truck auction platforms and described the sale price assumptions as “conservative.”
Police leadership and department managers said their fleet needs differ because patrol vehicles accrue far more miles and operate continuously; the chief cautioned the planned schedule would not be one‑size‑fits‑all. Finance and legal staff joined the discussion about how vehicles are recorded across funds and whether the city should move to a single fleet fund (Fund 31).
The council did not vote on a new policy. Instead councilors gave staff direction to return with detailed, auditable data including: (1) sale prices for the five most recent surplus vehicles, (2) spec sheets for the five new half‑ton pickups bought last year, (3) the auction sites and data sources used to estimate resale values, and (4) an options paper describing the municipal code or purchasing changes needed to consolidate vehicle funds. Mayor Rosacker asked staff to provide those figures before the next meeting.
Ending: Staff said they will compile the requested procurement and auction data and return to council with a recommendation; councilors encouraged members to do independent price checks and to examine local auction returns before the next discussion.
