20250113VEO to Staff 79 Attachment.pdf

(i) VEOLIA
Procurement Procedure
Procedure No : PC 238
Revision No : 1.0
Effective Date : 28 May 2021
SUBJECT: VEHICLE DISPOSITION
TABLE OF CONTENTS
1.0 SCOPE
2.0 PURPOSE
3.0 RESPONSIBILITIES
4.0 REFERENCES AND FORMS
5.0 DEFINITIONS
6.0 PROCEDURE
7.0 RECORDS
8.0 COMMUNICATION METHODOLOGY
9.0 COMPANY RIGHTS
10.0 REVIEW AND APPROVAL
11.0 CHANGE HISTORY
1.0 SCOPE
This procedure applies to all Veolia North America (VNA) company-provided (owned, leased or rented)
and client-provided vehicles.
2.0 PURPOSE
This procedure details the process to replace, sell, transfer and dispose of fleet vehicles in a manner
consistent with the VNA Vehicle Management Policy and the VNA Fixed Asset Policy.
3.0 RESPONSIBILITIES
The Procurement Fleet Manager is responsible for maintaining this procedure.
Managers are responsible for procedure implementation and compliance at all sites and for all vehicles
for which they have oversight and responsibility.
Page 1 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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4.0 REFERENCES AND FORMS
VNA Policies:
• Vehicle Management
• Purchasing Cycle and Requisition Process
• VNA Fixed Asset Policy
Fleet Forms can be found on the VNA Fleet Management page.
Fixed Asset forms can be found on the VNA Forms page under Section 9 eForms.
For US Operations, refer to the VNA Transportation page for Transportation Policies related to
compliance with US Department of Transportation (DOT) regulations.
For Canadian Operations, contact the Transportation Coordinator or your local EHS resource for
information related to compliance with Transport Canada (TC) Regulations.
5.0 DEFINITIONS
Click here for definitions of the terms that are key to understanding the policy.
6.0 PROCEDURE
6.1 Vehicle Replacement Parameters
Routine vehicle replacements are essential to managing overall vehicle cost. The
recommended fleet vehicle replacement frequencies are shown in the chart at the end
of this section. Note that in many cases, the recommended replacement frequency is
longer than the vehicle lease duration. When a leased vehicle is retained beyond the
expiration of the lease, a monthly small administrative fee will be required to keep the
vehicle enrolled in the Holman maintenance and fuel card programs. Managers and
business leaders should use this information for business planning and budgeting
purposes. While there may be business-related reasons, such as capital funding
constraints, to delay a vehicle replacement, managers should note that this will increase
the operating costs associated with maintaining the vehicle in a safe and reliable
condition.
When ordering a new vehicle (excluding heavy-duty vehicles), managers should typically
plan 3-4 months in advance for a vehicle replacement, although non-standard, special
order vehicles may take 5 months or more to receive. If the vehicle being replaced will
be sold after the new vehicle is received, it's recommended to order the new vehicle in
Page 2 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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January for a spring delivery or in late summer for a fall delivery. This allows the
replaced vehicle to be sold during peak remarketing months.
Recommended Vehicle Replacement Frequencies
Vehicle Description Mileage/Years
Automobiles 8 years
Sports Utility Vehicles (SUVs) 8 years
Light Duty Trucks 8 years
Vans 8 years
Service Trucks and Vans (Gas) 8 years
Service Trucks and Vans (Diesel) 8 years
Trucks< 19,000 lbs. GVWR (Diesel) 8 years
Trucks> 19,000 lbs. GVWR (Diesel) 250,000 miles
Tractors 600,000 miles
Trailers 20 years
6.2 Vehicle Transfers
If a vehicle is no longer needed, but the age of the vehicle is less than the recommended
replacement frequency, the vehicle can be transferred to another location that has a
need for a vehicle. If a site is unable to find a location within their business that is in
need of a vehicle, please contact the Fleet Manager for assistance.
VNA is required to maintain an accurate inventory of all company vehicles for financial,
fleet management, insurance and DOT/TC compliance purposes. While transfer of
vehicles is encouraged to meet changing vehicle requirements, it is absolutely necessary
that notice of the transfer be provided. Prior to transferring a vehicle, a Vehicle Transfer
Form must be submitted for all vehicles (owned or leased). For company owned
vehicles, an Asset Transfer Request Form may also be required by Finance.
On the Vehicle Transfer Form there is a checkbox to note whether or not the site will be
physically moving the vehicle or if Holman should make the arrangements. Regardless of
who is moving the vehicle,this form must be completed so the fleet inventory and billing
Page 3 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
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SUBJECT: VEHICLE DISPOSITION
information are kept current. If the vehicle is moved to another state/province, Holman
will make arrangements for a state/provincial transfer for the registration and new
license plates. In addition, please notify the VNA Corporate Transportation Department
or Canadian Transportation Coordinator regarding the transfer of any ESS IL
IRP-registered DOT vehicle. (For non-Holman leased vehicles, please complete the same
form and note the leasing company.) Please refer to the VNA Fixed Asset Policy for
additional information about the Asset Change Request Form process.
Before the vehicle is physically transferred to the new location,the originating site must
ensure that all documentation, such as registration and insurance cards, are current and
that all required items are in the glove box as specified in section 6.4 of the Vehicle
Ordering Procedure. In addition, the originating site must prepare the vehicle for the
new site's use by ensuring that all required maintenance has been performed, any body
damage has been repaired, and the vehicle has been cleaned both inside and out.
The receiving site has the responsibility to inspect the vehicle upon receipt and to notify
the originating site manager of any problems. If problems arise and agreement cannot
be reached between the two sites, the parties will request the assistance of the Fleet
Manager to reach a resolution.
6.3 Selling a Vehicle
Before any VNA vehicle (leased or owned) can be sold, it must be determined that it is not
needed at its current site, within its business, or anywhere else within VNA. (The exception
would be old vehicles that have outlived their usefulness, inoperable vehicles, or vehicles
requiring excessive safety, mechanical, or exterior/interior repairs.)
If the site was not able to locate a need elsewhere, they can submit a Vehicle Sale and Disposal
form, which will be reviewed by the Fleet Manager. If the vehicle is in good condition, the Fleet
Manager will review the fleet inventory to see if the vehicle can be used to replace an older
vehicle at another site.
6.3.1. Selling a Leased Vehicle
Leased vehicles are owned by the company that is leasing the vehicle to VNA. The
leasing company is usually Holman, but in some cases could be another company such
as Donlen, Element, or Enterprise. To begin the process of selling a leased vehicle that
is no longer needed,the site will need to:
• Complete the Vehicle Sale/Disposal form
• Check off that Holman (or other leasing company)will be managing the sale
• Attach pictures of the vehicle to the form and submit for approval and routing to
Holman.
• Note: If Holman is selling the vehicle,they will automatically terminate the fleet
management services and update the Insights database. If another company is
Page 4 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
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SUBJECT: VEHICLE DISPOSITION
selling the vehicle, Holman must be notified to terminate services and update
the Insights database.
If the site wants the leasing company to sell the vehicle to a specified person or outside
business, this should be noted on the Vehicle Sale/Disposal form. The leasing company
will then work directly with the buyer. There is a selling fee ($75-$100) charged to the
buyer. If there is no buyer specified,the leasing company will contact the site to arrange
for pickup of the vehicle. If needed, Holman can arrange for a short-term rental if a
vehicle is sold prior to the new vehicle being delivered.
6.3.2. Selling a Company-Owned Vehicle
It is recommended that sites utilize Holman to manage company-owned vehicle
sales. There is a selling fee associated with this service that will be charged to
the buyer. However, if a site chooses to sell the Veolia-owned vehicle directly to
an employee or local buyer, they may do so, provided the sale is completed in a
manner consistent with the VNA Fixed Asset Policy and with appropriate
segregation of duties (i.e., the individual coordinating the sale of the vehicle
should not be the buyer, the sole person approving the request or the person
receiving the payment).
For the US,the steps for selling a company-owned vehicle are as follows:
1. An Asset Disposal Request Form may be required per the VNA Fixed
Asset Policy. Contact Finance for additional information.
2. Determine the value of the vehicle. Complete/submit the Fair Market
Value Request form. Holman will provide the wholesale fair market
value from an independent source and return the quote to the
Requester.
3. Upon receipt of the FMV, the site should complete the Vehicle
Sale/Disposal form and note that the site will be selling the vehicle. (The
form requires the proper authority e-signature.)
4. Complete the bidding process to determine the vehicle buyer
5. Payment must be in the form of a cashier's check or money order made
out to Veolia North America. Upon receipt of payment, the site will
need to complete the Bill of Sale form approved/signed by the
Site/Branch Manager (provided that they are not the person who
completed the paperwork) and will need to sign over the Title to the
Buyer. Note: VNA should not sign the Bill of Sale or the Title until the
check or money order is in their possession, and the Buyer should not
sign the Title until they are at the Registry and in front of the Registry
representative.
Page 5 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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SUBJECT: VEHICLE DISPOSITION
6. The check and copies of the paperwork should be sent to the VNA Lock
Box with the coding of where the funds should be applied. Copies of all
the paperwork and the check should be uploaded as an attachment with
the Bill of Sale form. Upon submission, the form and attachment will be
forwarded to the next line manager for review and approval before
being routed to Holman. Holman will mark the vehicle as "sold" and
store the documents with the vehicle data. Copies of the check, Bill of
Sale, and coding should also be sent to the Finance team supporting the
Business.
6.3.3. Employees Purchasing Company Vehicles
In the US, it is permissible to offer vehicles to employees for purchase when the
vehicle is being replaced. If the vehicle is assigned to a driver (versus the site),
the driver has the first option to purchase the vehicle at the fair market value if
it is not needed elsewhere at VNA. This rule applies to vehicles that are
personally assigned vehicles only. Since this value represents a wholesale
amount,there is no negotiation on the price. Depending on whether the vehicle
is owned or leased, one of the two processes stated in Section 6.3.1 and 6.3.2
will be followed.
In certain cases where the fair market value is less than the remaining book
value, the Manager has the option of attempting to sell the vehicle at a retail
amount. If the vehicle's currently assigned employee is not interested in its
purchase, but other employees are, the vehicle will then be offered for sale
based on a sealed bid process open for 5 business days.The vehicle's fair market
value will be posted and the local Manager will accept sealed bids for a period of
one week. At the end of the 5-business days the employee submitting the
highest bid over the fair market value will have the opportunity to purchase the
vehicle.
If no bids are received over the fair market value, the Manager will complete a
Vehicle Sale or Disposal Request form and Holman will arrange for the Vehicle to
be picked up and sold.
6.3.4 Sale of Vehicles to Non-Employees
Sites are also permitted to find buyers for company-owned vehicles that are no
longer needed. In most cases, these vehicles will have no remaining Book Value
(amount due) and can be sold for as much as possible. Follow the same
processes for Selling a Company-Owned Vehicle. This is the main practice in
Quebec.
6.3.5 License Plate and Decal Removal
Page 6 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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In the US, if a vehicle is being sold by the leasing company, license plates should
stay on the vehicle. For company-owned vehicles, license plates will remain the
vehicle only if the vehicle is registered in one of the following states: AK, CA, DE,
HI, KY, LA, MN, OK, OR, SD, TX, WA. In all other states, the license plates and
registration documents must be removed and returned to the state's
Department of Motor Vehicles (DMV).
Any decals displaying the company's name, address, telephone number, and
DOT number must be removed from all vehicles (leased or owned) prior to being
sold. Other graphics, including stripes or waves, can remain on the vehicle.
For Canada, please contact the Transportation Coordinator or your local EHS
resource for guidance on license plate and decal removal requirements prior to
vehicle sale.
7.0 RECORDS
All vehicle records are maintained in Holman Insights.
8.0 COMMUNICATION METHODOLOGY
Employee Group Affected: Communication Method:
All VNA Employees Email, Company Intranet Posting, On-site
Printed Document Posting
9.0 COMPANY RIGHTS
The Company reserves the right to amend or rescind, in whole or in part, this policy at any time and
without notice. This policy does not constitute a contract of employment or a promise of benefits or
continued employment.
10.0 REVIEW AND APPROVAL
Reviewed by: Paula Antonelli
Title: VNA Fleet Manager
Date: 30 April 2021
Reviewed by: Bryan Hines
Title: Director, Direct Sourcing
Date: 30 April 2021
Page 7 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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SUBJECT: VEHICLE DISPOSITION
Approved by: Courtney Wright
Title: Chief Procurement Officer
Date: 30 April 2021
11.0 CHANGE HISTORY
Revision No. Summary of changes Issue Date Effective Date
1.0 Initial issuance 28 May 2021 28 May 2021
Page 8 of 8 Controlled document. Uncontrolled copies may not be up-to-date. Information contained herein is
Company confidential and for internal use only. Issued by Veolia North America.
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