Fleet staff warn of backlog: 27% of city vehicles eligible for replacement, fuel volatility raises budget concerns

Salt Lake City fleet staff on May 28 told the council the department faces a growing replacement backlog and short‑term maintenance pressures, and asked the council to consider replacement funding and contingency planning for volatile fuel costs.

"Currently for the general fund, we have over 27% of our assets eligible for replacement," Julie Krookton said, noting industry guidance aims for no more than 15% eligible at any time. Staff estimated that clearing the backlog would cost roughly $53 million.

Fleet described the division’s two budget components: the maintenance fund (fuel, maintenance and repair) and the replacement fund (vehicle purchases). Staff asked for $9.5 million for scheduled replacements in FY2027 and said maintenance funding shows a $1.4 million reduction charged to the general fund; that reduction will lead the shop to defer non‑cost‑effective repairs and prioritize preventative maintenance for newer assets.

Staff said non‑cost‑effective repairs in the last year totaled about $1.2 million—repairs that cost more than the residual auction value of assets—and gave examples of catastrophic, lengthy repairs (one snow‑plow repair exceeded $40,000 and left the asset out of service for months). Fleet also explained that accident‑related losses occur (average ~6–7 PD vehicles per year) but that the primary driver of rising maintenance costs is overdue replacement of assets.

Council members asked how maintenance and replacement policy affects decisions to buy EVs or hybrids. Staff said maintenance cost per mile for different drivetrains runs differently (gas often highest; hybrids and EVs lower in some maintenance categories), but that charging infrastructure availability is the main practical constraint to widespread EV adoption for city fleet vehicles.

On fuel, staff said the city budgeted fuel based on January price projections but actual market prices have been volatile; departments may need close monitoring and, if prices remain high, a budget amendment could be required later in the fiscal year.

Next steps: Fleet will continue to prioritize preventative maintenance, present specific replacement requests for council consideration in budget decisions, and coordinate with central finance to monitor fuel costs and report back if a budget amendment appears necessary.