PARKES SHIRE COUNCIL
PLANT AND VEHICLE REPLACEMENT
POLICY
PARKES SHIRE COUNCIL
PLANT & VEHICLE REPLACEMENT POLICY
CONTENTS
INTRODUCTION ................................................................................................................................................1
PURPOSE ..........................................................................................................................................................1
POLICY ..............................................................................................................................................................2
RESPONSIBILITY..............................................................................................................................................3
RELATED DOCUMENTATION..........................................................................................................................3
PROCEDURE .....................................................................................................................................................4
TRAINING ...................................................................................................................................................5
REPORTING ................................................................................................................................................5
REFERENCES ...................................................................................................................................................5
DOCUMENT VERSION CONTROL
Ref No.
Created by
First Adopted
Last Modified
Review
Period
DW Policy
Plant and Vehicle
Replacement
Policy
Sharon Ross
January 2007
OCM 05/02/2008
Res 08-63
17 August 2010
Twelve
months
INTRODUCTION
The Parkes Shire Council Plant and Vehicle Replacement Policy and Procedures have been
designed in accordance with the Code of Practice NSW Government Procurement (2005), the
Local Government (General) Regulation 2005 and ICAC guidelines "take the con out of
contracting".
Council owns, controls, manages and maintains an extensive range of plant and vehicles;
The range of plant and vehicles include (but are not limited to):
Graders, backhoes, loaders, trucks, tractors, mowers, rollers, utilities and sedans.
The aim of the Plant and Vehicle Replacement Policy is to:
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Secure potential or future plant and vehicle requirements of Council to enable it to
carry out its functions;
To review Plant and Vehicle Replacement Program to ensure appropriate for
Council's needs;
To manage the assets of the fleet to ensure the asset value is maintained; and
To optimise plant and vehicle replacement to ensure value for money whilst
maintaining asset value.
Sound plant and fleet management is necessary to enable Council to:
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Provide equipment for services to current and future generations;
Provide equipment to enable affordable facilities and services, which are
sustainable; and
Maintain a modern plant and vehicle fleet.
The objective of the Plant and Vehicle Replacement Policy is to:
1.
Provide the desired level of service in the most cost effective manner, for Council's
present and future needs.
2.
Maintain a modern, efficient and safe plant and vehicle fleet.
The purpose of the policy is to outline current plant and vehicle replacement practices and what
needs to be undertaken within the Parkes Shire Council to maintain plant and vehicle replacement
practices. The objective of this policy is to set the broad framework for undertaking plant and
vehicle replacement in a structured and co-ordinated manner.
PURPOSE
The policy aims to ensure all plant and vehicle replacement of Councils are legal, ethical and to
Council's best advantage. The outcomes of this policy are: open and effective competition, value
for money, ethical behaviour and fair dealing.
Open and effective competition:
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To instil confidence in Councillors and ratepayers and other agencies, about the probity
and cost effectiveness of Council's plant and replacement generally;
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To maximise the prospect of obtaining the most cost effective outcome for Council from
suppliers; and
Plant & Vehicle Replacement Policy
Page 1
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To ensure that plant and vehicle suppliers wishing to do business with Council are
given every opportunity to do so.
Value for money:
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To obtain the best return and performance for the money expended from the viewpoint
of total costs of ownership, and whole of life costs.
Ethical behaviour and fair dealing:
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To behave with impartiality, fairness, independence, openness, integrity and
professionalism;
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To advance at all times the interests of Parkes Shire Council;
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To attain a high level of credibility by performing the purchasing role of plant and
vehicle replacement impartially, uninfluenced by receipt or prospect of threats,
reprimands or rewards, avoiding conflicts of interest and providing equal opportunity for
all offerers;
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To maintain confidentiality of prices, supplier performance and evaluation criteria;
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To maintain a high standard of accountability;
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To develop systems and procedures that ensure a consistent approach to the decision
making process for the purchasing of plant and vehicles; and
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To promote professional plant and vehicle replacement practices.
POLICY
This policy applies to all Council owned plant and vehicles that Council has direct responsibility for
or control over, including (but not limited to):
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Plant and machinery;
Maintenance equipment; and
Passenger vehicles
Plant and vehicle replacement adopts an approach to develop and maintain plant and equipment
to ensure that:
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Plant and vehicle replacement strategies are driven by defined service levels and
performance standards;
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Financial resources are properly allocated and managed to optimise investment in plant
and equipment; and
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A long-term (life-cycle) approach is taken when determining plant and vehicle operations,
maintenance and renewal strategies. That is, a costing system which is concerned with the
cost of the life cycle ownership. It includes costs associated with the acquiring, using,
caring for and disposing of plant and vehicles including maintenance replacement and
disposal, commissioning, training costs and operating costs.
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RESPONSIBILITY
To achieve this policy the following key roles and responsibilities are identified:
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Council
- To act as custodians for plant and vehicle assets.
- To approve Council's Plant and Vehicle Replacement Program.
- To approve the sale and acquisition of large plant and equipment.
- To ensure appropriate resources for plant and vehicle replacement activities are
made available.
- To endorse the Plant and Vehicle Replacement Policy.
General Manager
To present the Plant and Vehicle Replacement Policy to Council.
To approve the sale and acquisition of light vehicle fleet and equipment.
To ensure that accurate and reliable information is presented to Council for decisionmaking.
Directors
To link the Plant and Vehicle Replacement Policy to the Plant and Vehicle
Replacement Program using the principles of lifecycle analysis.
To develop Plant and Vehicle Replacement Program, using the principles of
lifecycle analysis.
To present information to the Council and General Manager in terms of lifecycle
risks and costs.
To provide co-ordination for the implementation of Plant and Vehicle
Replacement Policy across Council departments.
To communicate Plant and Vehicle Replacement Policy across Council.
To develop policy.
To develop strategies.
To provide leadership in implementing Plant and Vehicle Replacement Policy.
Staff
To implement Plant and Vehicle Replacement Program within the boundaries of
individual responsibilities.
RELATED DOCUMENTATION
See specific Plant and Vehicle Replacement Programs for individual asset groups.
Parkes Shire Council Procurement Policy
Plant & Vehicle Replacement Policy
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PROCEDURE
The Plant Procurement Committee (comprising Councillors, Directors and Staff) will provide a
common and consistent approach to plant replacement. The annual review process will
accommodate the following activities:
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Review of future plant requirements by staff.
Incorporate feedback into a draft program from stakeholders and legislation into plant
and vehicle replacement activities undertaken by Council. The draft program to
include economic justification, potential alternatives (such as contractors),
opportunities to resource share with Alliance Councils, funding arrangements (eg
loans, leasing), also analysis of hire rates and depreciation.
Review of the draft Plant and Vehicle Replacement Program by the Plant
Procurement Committee
Reporting Plant and Vehicle Replacement Programs to Council for adoption via the
Plant Procurement Committee.
Develop and review plant replacement programmes for Plant and Vehicle
Replacement Programs annually.
Undertake regular reviews and recognise opportunities for plant and vehicle disposal
and replacement.
Facilitate flexible vehicle selection for vehicles that are nominated within the staff
lease back arrangements ensuring suitability for all purposes within budgetary
constraints and Council's Vehicle Leaseback Policy.
Actively market test passenger vehicles to determine changeover costs trends and
adjust replacement strategies accordingly.
Reference passenger fleet purchases against ANCAP (safety) and Green
Vehicle Guide (environment) ratings.
Ensure quality assurance by adopting checklists to ensure that all relevant
stakeholders are involved in the total process of plant and vehicle replacement.
Ensure Administration Officer and Finance Officer are aware of changes to plant and
vehicle fleet for insurance purposes.
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Considerations should also be given to:
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Risk Management;
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Compliance with OHS legislation;
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Green fleet initiatives such as vehicle emission levels and fuel economy;
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Roadside service availability;
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Market trends - optimum changeover, market preferences; and
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Warranty provisions.
This policy is a living document and as such the policy will be revised as the Council’s goals and
corporate direction change.
Plant & Vehicle Replacement Policy
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Training
Contract Management
Communication Skills
Tendering Regulations
Reporting
Procurement of plant items to be reported to Council via the Plant Procurement Committee and
then to Council for endorsement.
REFERENCES
Local Government (General) Regulation 2005
Code of Practice NSW Government Procurement (2005)
ICAC guidelines "take the con out of contracting"
Local Government Tendering Guidelines (2006) Consultation Draft.
Plant & Vehicle Replacement Policy
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