June 8, 2009

Dear Valued Fleet Services Customer,

We would like to take this opportunity to inform you that we are changing many aspects of the Fleet Services business operation.

We have complied with a directive from the campus Direct Costing Committee and undertaken work-study of the Fleet Services operation. Upon analyzing this review we have identified service needs with costs and have received tentative approval to move forward with changes and updates to our recharge rate structure.

Many of the charges for service that have been developed, are typical of other University of California campuses. For many of these services, UCSC Fleet Services are less expensive by comparison.

Some of the proposed changes will allow departments that own their own vehicles, and departments that lease vehicles to pick and choose the service they need. This will allow departments more control over their budgets.

All leases starting July 1, 2009, will be or become a “lease to own” the vehicle. Depending on the department’s payment requirements, leases can be set up for a five, seven or ten year option. Once the vehicle is fully depreciated, the department will own the vehicle.

There will no longer be a mileage fee charged on leased vehicles. Previously the mileage charge on the monthly lease was used to pay for vehicle maintenance. All repairs on lease to own vehicles are the financial responsibility of the department, much the same as a vehicle leased through an outside vendor or dealership.

We are currently working on upgrading the Fleet Services web site to further explain all the service changes and rate upgrades. In the mean time, we have attached an excel spreadsheet to give you a further reference to our business changes. If you have questions, please call 459-2228, or email Fleet Services.

Regards,

Jim West

Interim Associate Director

Physical Plant