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TO: Deans, Directors and Department Chairs, University Business Managers

FROM: Darius Dixon, Executive Director of Facilities Operations

The University has been notified by the N.C. Department of Administration that the billing structure for using Motor Fleet vehicles will change effective July 1, 2017.

Beginning July 1, 2017, N.C. Motor Fleet Management (MFM) will adopt a new rate model that will allow them to more accurately capture and pass on vehicle expenses and savings:

  • MFM will charge a fixed monthly lease fee based on vehicle class that includes a monthly usage of 1,050 miles.
  • The monthly lease fee also includes vehicle replacement costs, insurance and operating expenses, with the exception of fuel.
  • Vehicles will be charged a per mile rate for mileage exceeding the monthly 1,050-mile base.
  • Total monthly fuel purchases made using the WEX Fuel Card or at the UNC Service Station will be billed by MFM and will appear in ConnectCarolina Bill Presentation as a separate line item.

The new Motor Fleet monthly lease fees and mileage rates are available on the Facilities Services website at https://facilities.unc.edu/operations/fleet/motor-fleet-vehicles/.

Factors that were considered in moving to this billing structure include: vehicle replacement costs, maintenance, fuel economy and used vehicle sales data. The new model will allow MFM to determine at which point vehicles are the most cost effective to operate; to replace vehicles earlier in their lifecycle; and to ultimately de-age the fleet.

In an effort to provide state agencies with the resources to identify possible opportunities for savings through improving driving behaviors or vehicle rightsizing, MFM will also be installing telematics systems in all Motor Fleet vehicles. The data captured will provide us with the ability to review mileage, track vehicle trips, and get an overall view of driving trends and habits. Fleet Services will work with University departments to coordinate installation, which will be performed by MFM at the UNC Service Station.

For questions or concerns about the new Motor Fleet billing procedures, please contact Mark Stark, University Fleet Manager, mstark@facilities.unc.edu.

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