PUBLIC OVERSIGHT ROUNDTABLE

PROCUREMENT AND USE OF DC OFFICIAL VEHICLES

THURSDAY, MARCH 17, 2011

Good morning, the time is _________ on Thursday, March 17, 2011. I am

Councilmember Tommy Wells, Chairperson of the Committee on Public Works
and Transportation.

We are here today in room 120 of the John A. Wilson Building to hold a
Public Oversight Roundtable on procurement and use of DC official vehicles.

We are convening this roundtable in order to address serious issues that have
come to light in recent weeks – as first reported through our independent media,
first by the Washington City Paper, then the Washington Post and the Examiner –
regarding the procurement and leasing of luxury vehicles for the Chairman of the
Council and other public officials, including the Mayor.

What triggered this hearing was a preliminary review of information

collected by Committee staff following the initial media reports that raises
questions and concerns of whether DC laws and rules have been followed when
procuring vehicles. In addition, the leasing of multiple luxury vehicles raised
questions of appropriateness, and whether they had been procured under the law.
Further investigation reveals significant legal questions with the DC fleet
generally, and demonstrates a pattern that spans many years and administrations.
 But to put this hearing in greater context, what has drawn some of the
greatest criticism of the city, and of this Council, is not just what appears to be a
lapse application of the laws and rules, but the decisions made by public officials at
a time when the city is facing a severe budget shortfall and has just taken steps to
cut social services and help to vulnerable families.

At the time the requests were being made for luxury vehicles, the Mayor-
elect was telling residents to prepare for a $500-$600 million budget gap. More to
the point, we were being told that we have to “right-size our government to make
sure that we’re living within our means… we’re going to make the tough decisions
that have to be made.” (Vincent C. Gray, Ward 5 Town Hall, October 5, 2010)

And it’s not just the Mayor’s and Chair’s vehicles, but it seems little
thought was made of who should be assigned a personal vehicle, leased a new car,
or have it treated as a perk of the job. It’s unclear the question was asked, or
answered, why employees need a car purchased for their private use and at high
expense.

The decisions our leaders make serve as symbols and examples to the entire
city. How can we propose further cuts to vital services to families, the homeless
and disabled, when we make choices like these? How can we suggest that residents
must sacrifice to meet our basic needs, when we don’t make a sacrifice ourselves.

The decisions that were made undermine the confidence of the city’s
residents and beyond.

I have three goals today:

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 1. To determine areas where DC officials and agencies are not

following DC Law;
2. To identify what is necessary in order to comply with DC Law,

and most importantly;

3. To put us on a track toward wiser and more cost effective fleet

management decisions.

DC government has more than 1,000 vehicles in its fleet. The District
should be setting an example for prudent and responsible vehicle choices. Neither
our budget, nor our environment, can afford anything different.

In the Committee’s preliminary review, there are a number of areas where

DC Law appears to have been ignored:

• Leasing or purchasing sport utility vehicles (SUVs) -- Since 2004, DC Law

has prohibited the lease or purchase of SUV’s except for security,
emergency, rescue or armored vehicles.
• Leasing or purchasing vehicles that fail to meet minimum fuel efficiency
requirements – Since 2000, vehicles have been required to meet a minimum
fuel efficiency standard of 22 miles-per-gallon, with a similar exception for
security, emergency, rescue or armored vehicles.
• Requesting additional vehicle features without adequate justification –
Agencies are required to certify that requested vehicles are of maximum fuel
efficiency and minimum body size, engine size, and equipment necessary to
fulfill operational needs. If an agency requests larger than compact size
passenger automobiles, the agency head must certify it is essential to the
agency’s mission.

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 • Use of drivers and chauffeurs without proper authorization -- no DC
government employee is allowed to serve as a driver or chauffeur of another
DC government officer or employee, except for the Mayor, unless there is
advance written authorization.

I have reviewed the record to understand the discussion surrounding some of

these DC vehicle fleet restrictions. In most cases, the intent is clear. For example,
the Council was acting thoughtfully, and with clear intent, when it restricted DC
government purchase and leasing of SUVs. For example:

• The Fleet Management Administrator at that time stated an agency couldn't

just have an SUV, but that "program requirements must demonstrate the
need for this type of vehicle."
• He also stated, "In most cases, we have found that SUVs are not the type of
vehicles best suited solely for everyday purposes."
• DPW answers for the 2002 hearing indicated none of the fleet vehicles were
meeting the 22 MPG average; SUVs achieved only half that.

Careful thought has gone into these laws governing DC fleet requirements.
This Council must hold both the Government officials and DC employees
accountable when they violate and ignore these laws. There is no excuse for such
poor compliance when you consider very recent warnings about the need for more
active management of our fleet and more aggressive work to ensure compliance
with District requirements. As recently as April 2010, less than one year ago, the
DC Auditor published a critical report on DPW’s fleet management administration.

Findings included, among other points, that:

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 • DPW lacked standardized fleet policies and procedures, and did not monitor
the application of policies and procedures established by agencies.
• DPW did not establish a management program for all phases of motor
vehicle equipment management from initial procurement to vehicle disposal.
and
• And that in the absence of comprehensive fleet management, the District of
Columbia’s fleet will continue to operate as an inefficient, decentralized
system that lacks consistent policies and procedures, accurate fleet data, and
effective city-wide internal controls that protect citizens, visitors, and
resources of the District of Columbia.

The District is facing extraordinary budget challenges. We must

demonstrate that this government is doing everything possible to reduce costs and
improve government efficiency. We need to face this challenge in our fleet
management as much as anywhere else.

Finally, I would note that I am very disappointed that the Committee did not
receive responses to our questions from over a dozen agencies. In particular,
independent review suggests that several of the agencies that did not respond or
answer questions have vehicles assigned to the Directors for their personal use, and
in some cases, have employees serving as drivers. We would like to have the
missing information submitted immediately.

We should have, and the city should have, an expectation that we can hold
ourselves accountable and lead by example.

With that, let’s hear from our first panel of public witnesses….

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