Title
a. Receive overview of the Vehicle Replacement Program (VRP, AKA: Vehicle Asset Management Program, VAMP); and
b. Provide direction to staff for the Fiscal Year (FY) 2025-26 Recommended Budget.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive overview of the Vehicle Replacement Program (VRP, AKA: Vehicle Asset Management Program, VAMP); and
b. Provide direction to staff for the Fiscal Year (FY) 2025-26 Recommended Budget.
SUMMARY/DISCUSSION:
At the May 28, 2025 Budget Hearings, the Board requested that Staff bring back more information about the Vehicle Replacement Program (VRP, AKA: Vehicle Asset Management Program, VAMP).
The VRP was established in Fiscal Year 2011-12, in which the County set aside $5,000,000 for a 2011-12 assignment to help meet future obligations associated with employee leave accruals and the VRP.
VRP facilitates the timely replacement of vehicles and equipment through a methodical process of predicting asset lifecycles using costing information, utilization data, and asset age assessment. Participating offices and departments voluntarily enroll in the program and contribute a monthly fee over each asset’s operational lifespan to fund its eventual replacement. These pooled funds are then utilized for vehicle replacement once the asset has reached full depreciation, typically occurring within 6 to 8 years.
While contributions are collected centrally within the VRP internal service fund, both contributions and expenditures are tracked by department to ensure each one benefits solely from its own funding. This level of tracking reflects best practice that promotes fairness, transparency, and audit readiness. Beginning FY 2024-25, the VRP Fund Balance was $34,372,397. It’s important to note that while the VRP-funded portion of the fleet appears to be well-funded, this does not necessarily reflect the condition or funding status of the overall County fleet. VRP funds are designated specifically for the future replacement of vehicles for departments that have participated in the program and contributed accordingly. These funds are not intended for general fleet operations or to supplement unrelated budget gaps. Additionally, any temporary suspension of VAMP contributions as a budget strategy, does not alter the purpose or intended use of existing VAMP reserves.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office has been consulted regarding this report.
FINANCING:
The FY 2025-26 Recommended Budget includes VRP contributions from various departments totaling $2,996,382. Accepting this report has no financial impact to the General Fund.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This action supports the Board of Supervisors’ Strategic Initiatives for Administration and Infrastructure, by having financial mechanisms in-place that allow departments to use and replace vehicle assets.
___ Economic Development
X Administration
___ Health & Human Services
X Infrastructure
___ Public Safety
Prepared by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
Reviewed by: Richard Buell, Fleet Manager
Jessica Cordiero-Martinez, Finance Manager III
Florence Kabwasa-Green, Chief of Facilities
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
Attachment A - FY 26 VRP in Recommended Budget