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County fleet director outlines $12 million six‑year replacement plan and options to avoid insolvency
Summary
San Juan County fleet officials warned council on Oct. 21 that aging vehicles and rising replacement costs have produced a multi‑million dollar shortfall; the fleet director proposed a six‑year, $12 million surcharge plan and a set of alternatives including voluntary reductions and third‑party leasing.
San Juan County’s fleet operation is facing a growing capital shortfall that, without action, could render the internal equipment fund insolvent in the near term, Fleet Director John Roach warned the County Council Oct. 21.
Roach presented a decision package that would implement a six‑year surcharge plan totaling about $12 million to bring replacement funding into alignment with actual vehicle costs. He told the council that replacement costs have risen roughly 54% in six years and that previous lease rates and replacement cycles set in 2014 and 2019 under‑collect overhead and replacement contributions. He said roughly 36% of the county fleet — about 101 units — is beyond its intended life cycle and the average fleet age is 12 years.
Roach outlined a menu of options short of the full surcharge: voluntary reductions in departmental fleets, approving updated life‑cycle schedules and a two‑part lease rate to recover overhead, deferring selected replacements (with increased repair risk and overall cost), reducing the short‑term motor pool, exploring third‑party leases for light‑duty vehicles, and expanding interlocal service agreements to recover costs from external agencies. He also requested increases in internal labor rates and fuel‑gallon surcharges to better capture operating costs, and said an underpriced short‑term motor pool has operated at an average loss.
Council members responded with questions about timing, impacts on department budgets, and potential for interlocal revenue. Several councilors said they preferred to examine business‑model changes — such as third‑party leasing and increased interlocal work — rather than attempt to fill an historic funding hole entirely from county general resources. Staff and the county finance director agreed to compute the countywide budgetary impact of Roach’s recommended changes and return with more detailed scenarios.
Council did not take a final vote on the package Oct. 21. Roach asked the council to consider an approach that would avoid insolvency and preserve essential maintenance capacity rather than continuing a cycle of reactive repairs and deferred replacements.
