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Government Fleet June 2011

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Magazine for the professional fleet manager managing public sector vehicles and equipment.
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Page 1: Government Fleet June 2011

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VXLWHRISURGXFWVz)OHHW)RFXV)XHO)RFXVDQGH9DOHWzVWDQGVFRPPLWWHG

WRVHUYLQJWKHFKDOOHQJLQJDQGFKDQJLQJQHHGVRIJRYHUQPHQWIOHHWV2XU

LQWHJUDWHGSURGXFWVOHYHUDJHWKHODWHVWWHFKQRORJLQVRIWZDUHDQGZLUHOHVV

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VHUYLFHGHOLYHUDQGDFKLHYHVXEVWDQWLDODQGPHDVXUDEOHFRVWVDYLQJVH

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H9DOHWWRHQKDQFH

WKHLUPRWRUSRRODQGIOHHW

RSHUDWLRQVLQWKLVLVVXH

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)((7)2amp8670_)8()2amp86

70_(lt9$(7

70

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x ampUDGOHWRUDYH(TXLSPHQW

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x RUN2UGHU0DQDJHPHQW

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x 3DUWVQYHQWRU0DQDJHPHQW

x )XOOQWHJUDWHG5HDO7LPH)XHO

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x H3HUIRUPDQFHQGLFDWRU3

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x )XHO)OXLGVQYHQWRUampRQVXPSWLRQ

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x 5HDO7LPH9DOLGDWLRQRI0HWHU

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x 6XSSRUWIRU6PDUWampDUGV3UR[LPLW

ampDUGVHV0DJQHWLF6WULSHampDUGVDQG

5DGLR)UHTXHQFGHQWLILFDWLRQ5)

2SWLRQ

x 6XSSRUWIRUDVLHVHOamp11

+GURJHQ$OWHUQDWH)XHOVDQG)OXLGV

x 6HFXUH$XWRPDWHGH6WRUDJHR[

DWWKH0RWRU3RRORFDWLRQ

x 6PDUWampDUG7HFKQRORJIRU

(DVHRI8VHDQG6HFXULW

x 2QOLQH0RWRU3RRO5HVHUYDWLRQV

x $XWRPDWHG$YDLODELOLW0DQDJHPHQW

ampRQILUPDWLRQDQGampXVWRPHU1RWLILFDWLRQV

x 5HDOWLPHLUHOHVV2GRPHWHU5HDGLQJV

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x XVLQHVVQWHOOLJHQFHZLWK5HSRUWLQJDQG

DVKERDUGV

x 2SWLRQDO36QWHJUDWLRQ

GF06_C2-1indd 1GF06_C2-1indd 1 51811 32527 PM51811 32527 PM

2 Government Fleet June 2011

GOVERNMENT FLEET

ON THE COVER

Fleet managers share how they communicate with others to help improve fl eet image

JUNE 2011 bull A BOBIT PUBLICATION bull VOLUME 9 - ISSUE 4 WWWGFLEETCOM

16 EFFECTIVE COMMUNICATION ENHANCES FLEET IMAGEIncreasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

24 LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAWMost people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

30 LOW-COST OR NO-COST GREEN FLEET STRATEGIESA variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

34 SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONSTodayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system the City of Seattle was able to increase effi ciency in its operations and achieve savings

4 ON THE WEB

6 MAIL STOP

10 INDUSTRY NEWS Award Winners amp Finalists

Announced

44 PRODUCTS

48 PUBLIC FORUM

24

30

34

Fscoi

FEATURES

DEPARTMENTS

38 BEST PRACTICES IN REMARKETING OFF-ROAD EQUIPMENTRemarketing can yield ma-jor resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet ex-perts weigh in on some of the best ways to maximize resale value for off-road equipment

O F F - R O A D E Q U I P M E N T

Government Fleet (USPS 740) is published bi-monthly with an additional issue in June by Bobit Business Media 3520 Challenger Street Torrance California 90503-1640 Periodicals Postage Paid at Torrance CA 90503-9998 and Additional Mailing Offi cesPOSTMASTER Send address changes to Government Fleet PO Box 1068 Skokie IL 60076-8068 Please allow six to eight weeks for address changes to take effect Please allow six to eight weeks to receive your fi rst issue Bobit Business Media reserves the right to refuse nonqualifi ed subscriptions Please address editorial and advertising correspondence to the executive offi ces at 3520 Challenger Street Torrance California 90503-1640 The contents of this publication may not be reproduced either in whole or in part without the consent of Bobit Business Media All statements made although based on information believed to be reliable and accurate cannot be guaranteed and no fault or liability can be accepted for error or omission

GF06_TOCindd 2GF06_TOCindd 2 51811 32701 PM51811 32701 PM

GPS INSIGHTADVANCED GPS FLEET TRACKING

GPS Insight Customizable Dashboard Interface

Visit us at GFX Booth 94 to see a demo of our solution

wwwgpsinsightcomgov | (877) 377-3036

Take Full Control Of Your Fleet

Immediately Cut Costs with these GPS Tracking Benefits

raquo Reduce Speeding

raquo Limit Wasteful Idling

raquo Prevent Unauthorized Usage

raquo Optimize Routing

raquo Improve Productivity

raquo Theft Recovery

raquo Proactive Maintenance Alerts

raquo Insurance Discounts

raquo Improve Invoicing Accuracy

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4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

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increase in service revenue while payroll expenses

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With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

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This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

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ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 2: Government Fleet June 2011

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YHKLFOHVDQGVWDWLRQDUDVVHWVLVFULWLFDOWRWKHERWWRPOLQH7KH$VVHWRUNV

VXLWHRISURGXFWVz)OHHW)RFXV)XHO)RFXVDQGH9DOHWzVWDQGVFRPPLWWHG

WRVHUYLQJWKHFKDOOHQJLQJDQGFKDQJLQJQHHGVRIJRYHUQPHQWIOHHWV2XU

LQWHJUDWHGSURGXFWVOHYHUDJHWKHODWHVWWHFKQRORJLQVRIWZDUHDQGZLUHOHVV

PRELOHFRPSXWLQJWRKHOSRXUFXVWRPHUVEHWWHUXWLOL]HUHVRXUFHV LPSURYH

VHUYLFHGHOLYHUDQGDFKLHYHVXEVWDQWLDODQGPHDVXUDEOHFRVWVDYLQJVH

DUHSURXGWREHWKHWUXVWHGVROXWLRQWRRYHUIOHHWVLQ1RUWK$PHULFD

2XUFXVWRPHUVLQFOXGH

x RIWKH0RVW3RSXODWHG86ampLWLHV

x RIWKH0RVW3RSXODWHG86ampRXQWLHV

x RXWRIWKH866WDWHV

x )HGHUDO $JHQFLHV LQFOXGLQJ WKH 86

HSDUWPHQW RI +RPHODQG 6HFXULW 1DYDO

6SHFLDODUIDUHDQGWKH860DULQHampRUSV

HDUQPRUHDERXWKRZ

WKHampLWRI6HDWWOHLVXVLQJ

H9DOHWWRHQKDQFH

WKHLUPRWRUSRRODQGIOHHW

RSHUDWLRQVLQWKLVLVVXH

GF06_C2-1indd 992GF06_C2-1indd 992 51811 32459 PM51811 32459 PM

ZZZDVVHWZRUNVFRP_

)((7)2amp8670_)8()2amp86

70_(lt9$(7

70

$VVHWRUNV2IIHUVWKH21lt)XOOQWHJUDWHG)OHHW

0DQDJHPHQW6RIWZDUH$XWRPDWHG)XHOLQJ6VWHPDQG

0RWRU3RRO0DQDJHPHQW6ROXWLRQRQWKH0DUNHW

x ampUDGOHWRUDYH(TXLSPHQW

DQG9HKLFOH7UDFNLQJ

x RUN2UGHU0DQDJHPHQW

x DUUDQW0DQDJHPHQW

x 3UHYHQWLYH0DLQWHQDQFH6FKHGXOLQJ

x 3DUWVQYHQWRU0DQDJHPHQW

x )XOOQWHJUDWHG5HDO7LPH)XHO

0DQDJHPHQW6VWHP

x H3HUIRUPDQFHQGLFDWRU3

DVKERDUGV

x LUHOHVVDWDampROOHFWLRQ)XQFWLRQDOLW

x DWHVWHEDVHG7HFKQRORJ

x 6LQJOHDWDEDVH)RU0DLQWHQDQFH

DQG)XHOLQJ0DQDJHPHQW

x )XHO)OXLGVQYHQWRUampRQVXPSWLRQ

0DQDJHPHQW

x 5HDO7LPH9DOLGDWLRQRI0HWHU

5HDGLQJV7DQNampDSDFLWLHVDQG

9HKLFOH$XWKRUL]DWLRQ

x 6XSSRUWIRU6PDUWampDUGV3UR[LPLW

ampDUGVHV0DJQHWLF6WULSHampDUGVDQG

5DGLR)UHTXHQFGHQWLILFDWLRQ5)

2SWLRQ

x 6XSSRUWIRUDVLHVHOamp11

+GURJHQ$OWHUQDWH)XHOVDQG)OXLGV

x 6HFXUH$XWRPDWHGH6WRUDJHR[

DWWKH0RWRU3RRORFDWLRQ

x 6PDUWampDUG7HFKQRORJIRU

(DVHRI8VHDQG6HFXULW

x 2QOLQH0RWRU3RRO5HVHUYDWLRQV

x $XWRPDWHG$YDLODELOLW0DQDJHPHQW

ampRQILUPDWLRQDQGampXVWRPHU1RWLILFDWLRQV

x 5HDOWLPHLUHOHVV2GRPHWHU5HDGLQJV

DQG7ULSDWD7UDQVIHUWR)OHHW)RFXV

x QWHJUDWHGLOOLQJ

x XVLQHVVQWHOOLJHQFHZLWK5HSRUWLQJDQG

DVKERDUGV

x 2SWLRQDO36QWHJUDWLRQ

GF06_C2-1indd 1GF06_C2-1indd 1 51811 32527 PM51811 32527 PM

2 Government Fleet June 2011

GOVERNMENT FLEET

ON THE COVER

Fleet managers share how they communicate with others to help improve fl eet image

JUNE 2011 bull A BOBIT PUBLICATION bull VOLUME 9 - ISSUE 4 WWWGFLEETCOM

16 EFFECTIVE COMMUNICATION ENHANCES FLEET IMAGEIncreasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

24 LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAWMost people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

30 LOW-COST OR NO-COST GREEN FLEET STRATEGIESA variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

34 SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONSTodayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system the City of Seattle was able to increase effi ciency in its operations and achieve savings

4 ON THE WEB

6 MAIL STOP

10 INDUSTRY NEWS Award Winners amp Finalists

Announced

44 PRODUCTS

48 PUBLIC FORUM

24

30

34

Fscoi

FEATURES

DEPARTMENTS

38 BEST PRACTICES IN REMARKETING OFF-ROAD EQUIPMENTRemarketing can yield ma-jor resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet ex-perts weigh in on some of the best ways to maximize resale value for off-road equipment

O F F - R O A D E Q U I P M E N T

Government Fleet (USPS 740) is published bi-monthly with an additional issue in June by Bobit Business Media 3520 Challenger Street Torrance California 90503-1640 Periodicals Postage Paid at Torrance CA 90503-9998 and Additional Mailing Offi cesPOSTMASTER Send address changes to Government Fleet PO Box 1068 Skokie IL 60076-8068 Please allow six to eight weeks for address changes to take effect Please allow six to eight weeks to receive your fi rst issue Bobit Business Media reserves the right to refuse nonqualifi ed subscriptions Please address editorial and advertising correspondence to the executive offi ces at 3520 Challenger Street Torrance California 90503-1640 The contents of this publication may not be reproduced either in whole or in part without the consent of Bobit Business Media All statements made although based on information believed to be reliable and accurate cannot be guaranteed and no fault or liability can be accepted for error or omission

GF06_TOCindd 2GF06_TOCindd 2 51811 32701 PM51811 32701 PM

GPS INSIGHTADVANCED GPS FLEET TRACKING

GPS Insight Customizable Dashboard Interface

Visit us at GFX Booth 94 to see a demo of our solution

wwwgpsinsightcomgov | (877) 377-3036

Take Full Control Of Your Fleet

Immediately Cut Costs with these GPS Tracking Benefits

raquo Reduce Speeding

raquo Limit Wasteful Idling

raquo Prevent Unauthorized Usage

raquo Optimize Routing

raquo Improve Productivity

raquo Theft Recovery

raquo Proactive Maintenance Alerts

raquo Insurance Discounts

raquo Improve Invoicing Accuracy

GF06_TOCindd 3GF06_TOCindd 3 51811 32710 PM51811 32710 PM

4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

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Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

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ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 3: Government Fleet June 2011

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)((7)2amp8670_)8()2amp86

70_(lt9$(7

70

$VVHWRUNV2IIHUVWKH21lt)XOOQWHJUDWHG)OHHW

0DQDJHPHQW6RIWZDUH$XWRPDWHG)XHOLQJ6VWHPDQG

0RWRU3RRO0DQDJHPHQW6ROXWLRQRQWKH0DUNHW

x ampUDGOHWRUDYH(TXLSPHQW

DQG9HKLFOH7UDFNLQJ

x RUN2UGHU0DQDJHPHQW

x DUUDQW0DQDJHPHQW

x 3UHYHQWLYH0DLQWHQDQFH6FKHGXOLQJ

x 3DUWVQYHQWRU0DQDJHPHQW

x )XOOQWHJUDWHG5HDO7LPH)XHO

0DQDJHPHQW6VWHP

x H3HUIRUPDQFHQGLFDWRU3

DVKERDUGV

x LUHOHVVDWDampROOHFWLRQ)XQFWLRQDOLW

x DWHVWHEDVHG7HFKQRORJ

x 6LQJOHDWDEDVH)RU0DLQWHQDQFH

DQG)XHOLQJ0DQDJHPHQW

x )XHO)OXLGVQYHQWRUampRQVXPSWLRQ

0DQDJHPHQW

x 5HDO7LPH9DOLGDWLRQRI0HWHU

5HDGLQJV7DQNampDSDFLWLHVDQG

9HKLFOH$XWKRUL]DWLRQ

x 6XSSRUWIRU6PDUWampDUGV3UR[LPLW

ampDUGVHV0DJQHWLF6WULSHampDUGVDQG

5DGLR)UHTXHQFGHQWLILFDWLRQ5)

2SWLRQ

x 6XSSRUWIRUDVLHVHOamp11

+GURJHQ$OWHUQDWH)XHOVDQG)OXLGV

x 6HFXUH$XWRPDWHGH6WRUDJHR[

DWWKH0RWRU3RRORFDWLRQ

x 6PDUWampDUG7HFKQRORJIRU

(DVHRI8VHDQG6HFXULW

x 2QOLQH0RWRU3RRO5HVHUYDWLRQV

x $XWRPDWHG$YDLODELOLW0DQDJHPHQW

ampRQILUPDWLRQDQGampXVWRPHU1RWLILFDWLRQV

x 5HDOWLPHLUHOHVV2GRPHWHU5HDGLQJV

DQG7ULSDWD7UDQVIHUWR)OHHW)RFXV

x QWHJUDWHGLOOLQJ

x XVLQHVVQWHOOLJHQFHZLWK5HSRUWLQJDQG

DVKERDUGV

x 2SWLRQDO36QWHJUDWLRQ

GF06_C2-1indd 1GF06_C2-1indd 1 51811 32527 PM51811 32527 PM

2 Government Fleet June 2011

GOVERNMENT FLEET

ON THE COVER

Fleet managers share how they communicate with others to help improve fl eet image

JUNE 2011 bull A BOBIT PUBLICATION bull VOLUME 9 - ISSUE 4 WWWGFLEETCOM

16 EFFECTIVE COMMUNICATION ENHANCES FLEET IMAGEIncreasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

24 LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAWMost people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

30 LOW-COST OR NO-COST GREEN FLEET STRATEGIESA variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

34 SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONSTodayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system the City of Seattle was able to increase effi ciency in its operations and achieve savings

4 ON THE WEB

6 MAIL STOP

10 INDUSTRY NEWS Award Winners amp Finalists

Announced

44 PRODUCTS

48 PUBLIC FORUM

24

30

34

Fscoi

FEATURES

DEPARTMENTS

38 BEST PRACTICES IN REMARKETING OFF-ROAD EQUIPMENTRemarketing can yield ma-jor resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet ex-perts weigh in on some of the best ways to maximize resale value for off-road equipment

O F F - R O A D E Q U I P M E N T

Government Fleet (USPS 740) is published bi-monthly with an additional issue in June by Bobit Business Media 3520 Challenger Street Torrance California 90503-1640 Periodicals Postage Paid at Torrance CA 90503-9998 and Additional Mailing Offi cesPOSTMASTER Send address changes to Government Fleet PO Box 1068 Skokie IL 60076-8068 Please allow six to eight weeks for address changes to take effect Please allow six to eight weeks to receive your fi rst issue Bobit Business Media reserves the right to refuse nonqualifi ed subscriptions Please address editorial and advertising correspondence to the executive offi ces at 3520 Challenger Street Torrance California 90503-1640 The contents of this publication may not be reproduced either in whole or in part without the consent of Bobit Business Media All statements made although based on information believed to be reliable and accurate cannot be guaranteed and no fault or liability can be accepted for error or omission

GF06_TOCindd 2GF06_TOCindd 2 51811 32701 PM51811 32701 PM

GPS INSIGHTADVANCED GPS FLEET TRACKING

GPS Insight Customizable Dashboard Interface

Visit us at GFX Booth 94 to see a demo of our solution

wwwgpsinsightcomgov | (877) 377-3036

Take Full Control Of Your Fleet

Immediately Cut Costs with these GPS Tracking Benefits

raquo Reduce Speeding

raquo Limit Wasteful Idling

raquo Prevent Unauthorized Usage

raquo Optimize Routing

raquo Improve Productivity

raquo Theft Recovery

raquo Proactive Maintenance Alerts

raquo Insurance Discounts

raquo Improve Invoicing Accuracy

GF06_TOCindd 3GF06_TOCindd 3 51811 32710 PM51811 32710 PM

4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

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of experience GovDeals can

expose government surplus

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base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

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Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

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IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

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Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

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48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

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ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 4: Government Fleet June 2011

2 Government Fleet June 2011

GOVERNMENT FLEET

ON THE COVER

Fleet managers share how they communicate with others to help improve fl eet image

JUNE 2011 bull A BOBIT PUBLICATION bull VOLUME 9 - ISSUE 4 WWWGFLEETCOM

16 EFFECTIVE COMMUNICATION ENHANCES FLEET IMAGEIncreasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

24 LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAWMost people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

30 LOW-COST OR NO-COST GREEN FLEET STRATEGIESA variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

34 SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONSTodayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system the City of Seattle was able to increase effi ciency in its operations and achieve savings

4 ON THE WEB

6 MAIL STOP

10 INDUSTRY NEWS Award Winners amp Finalists

Announced

44 PRODUCTS

48 PUBLIC FORUM

24

30

34

Fscoi

FEATURES

DEPARTMENTS

38 BEST PRACTICES IN REMARKETING OFF-ROAD EQUIPMENTRemarketing can yield ma-jor resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet ex-perts weigh in on some of the best ways to maximize resale value for off-road equipment

O F F - R O A D E Q U I P M E N T

Government Fleet (USPS 740) is published bi-monthly with an additional issue in June by Bobit Business Media 3520 Challenger Street Torrance California 90503-1640 Periodicals Postage Paid at Torrance CA 90503-9998 and Additional Mailing Offi cesPOSTMASTER Send address changes to Government Fleet PO Box 1068 Skokie IL 60076-8068 Please allow six to eight weeks for address changes to take effect Please allow six to eight weeks to receive your fi rst issue Bobit Business Media reserves the right to refuse nonqualifi ed subscriptions Please address editorial and advertising correspondence to the executive offi ces at 3520 Challenger Street Torrance California 90503-1640 The contents of this publication may not be reproduced either in whole or in part without the consent of Bobit Business Media All statements made although based on information believed to be reliable and accurate cannot be guaranteed and no fault or liability can be accepted for error or omission

GF06_TOCindd 2GF06_TOCindd 2 51811 32701 PM51811 32701 PM

GPS INSIGHTADVANCED GPS FLEET TRACKING

GPS Insight Customizable Dashboard Interface

Visit us at GFX Booth 94 to see a demo of our solution

wwwgpsinsightcomgov | (877) 377-3036

Take Full Control Of Your Fleet

Immediately Cut Costs with these GPS Tracking Benefits

raquo Reduce Speeding

raquo Limit Wasteful Idling

raquo Prevent Unauthorized Usage

raquo Optimize Routing

raquo Improve Productivity

raquo Theft Recovery

raquo Proactive Maintenance Alerts

raquo Insurance Discounts

raquo Improve Invoicing Accuracy

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4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

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Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

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  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
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Page 5: Government Fleet June 2011

GPS INSIGHTADVANCED GPS FLEET TRACKING

GPS Insight Customizable Dashboard Interface

Visit us at GFX Booth 94 to see a demo of our solution

wwwgpsinsightcomgov | (877) 377-3036

Take Full Control Of Your Fleet

Immediately Cut Costs with these GPS Tracking Benefits

raquo Reduce Speeding

raquo Limit Wasteful Idling

raquo Prevent Unauthorized Usage

raquo Optimize Routing

raquo Improve Productivity

raquo Theft Recovery

raquo Proactive Maintenance Alerts

raquo Insurance Discounts

raquo Improve Invoicing Accuracy

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4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

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UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

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Validate time spent on the job

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Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 6: Government Fleet June 2011

4 Government Fleet June 2011

What Youre Reading

wwwgovernment-fl eetcomw

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PM

AUSTIN TO INSTALL ANTI-IDLING TECH IN PATROL VEHICLESThe solution from Energy Xtreme will provide enough power to operate necessary electronics equipment in the patrol vehicles without running the engine

CHICAGO TO COMBINE FLEET MANAGEMENT amp GENERAL SERVICESNewly appointed Commissioner David Reynolds will manage all government property including the cityrsquos fl eet of 12400 vehicles He will be charged with improving the energy effi ciency of City buildings and vehicles according to Mayor-Elect Emanuel

WASHINGTON STATE PATROL SWITCHES TO HONDA ST1300PATwelve of the Statersquos current 43 full-time troopers on motorcycle have already completed the transition

COLUMBUS FLEET USING CNG TO REDUCE DIESEL COSTSThe Cityrsquos initial purchase was for 24 CNG vehicles to replace the highest polluters in the fl eet The City is currently building a CNG fueling station as well

WEB EXCLUSIVE FUELING PUBLIC SECTOR FLEETSWith public and private sector fl eets facing similar issues do fuel management best practices exist in the private world that can benefi t public fl eets Find out about two key elements that should be of particular interest to public fl eets

THE 54

1

2

3

4

5

Government-fl eetcomrsquos top 5 most popular stories as of May 16 2011

THE FLEET CHANNELS

Use the navigator on the government-fl eetcom home page to browse the latest articles from the channels Enter a channel to view in-depth news articles tools calculators and more related to that specifi c topic

Learn from the experts at Government Fleet the ways companies are greening their fl eets The Green Fleet Channel brings you the latest in the reduction of fuel costs and alternative energy solutions for fl eet cars and trucks

bull Oil Initiatives Government Fleets Should Consider

bull How Minneapolis Implemented its Green Fleet Policy

bull Pros and Cons of lsquoRight-Sizingrsquo Vehicles to Increase Fuel Economy

bull Seattle Named No 1 Government Green Fleet

bull Government Fleet Managers Recognized for Leading lsquoGreenrsquo Efforts

Industry Trends Telematics Safety Remarketing Fuel

RECEIVE BREAKING NEWS WHEN IT HAPPENSSign up for Government Fleetrsquos bi-weekly eNewsletter for timely updates on the latest industry news in public sector fl eet management as well as research and trends industry events and current Government Fleet magazine articles and features Subscribe at wwwgovernment-fl eetcom

MARKET TRENDSBy Mike Antichwwwgovernment-fl eetcomBlogGF-Market-Trendsaspx

April 18 The Value of Creating a Fleet Advisory Board

December 6 Yoursquore Only as Good as Your Staff

November 22 Be Part of the Solution Not Part of the Problem

November 15 Maximizing Uti-lization as a Cost-Containment Strategy

WHAT WErsquoRE BLOGGING ABOUT

WWBBBBLO

ANTICH

FLEET BLOGS

The Voice of the Fleet Community (wwwfl eetblogscom)

May 16 Leaders Itrsquos Your Turnby Joseph Thompson

May 13 You Canrsquot Lose the Budget Gambit Projecting $4 a Gallon Gasolineby Wayne Smolda

May 13 Impact of Higher Gas Prices Felt Everywhereby Jennifer Sutherland

May 2 Is your truck too big for the job It could be costlyby Steve Fowler

April 29 Coming Together to Fuel Sustainable Changeby Elisa Durand

Interested in starting your own blog Go to wwwfl eetblogscom for more information

GF06_WebTOCindd 4GF06_WebTOCindd 4 51811 42050 PM51811 42050 PM

GREENERAt Ford Fleet we believe in getting the most out of green technology Wersquore continually working to improve vehicle performance while decreasing negative environmental impact Our proprietary EcoBoosttrade engine can do just that for your fl eet It combines turbocharging and direct-injection technologies to provide the performance of a V8 with the fuel economy of a V6 Our ultimate goal is to go beyond producing a more powerful and greener fl eet mdash to ensuring every mile your fl eet drives barely leaves an impression at all Ford Fleet Get More

fl eetfordcom

Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

D_18635_0_Pg_R04indd 1 5310 118 PM

GF0610fordgreenerindd 1 51210 10427 PMGF06_WebTOCindd 5GF06_WebTOCindd 5 51811 42055 PM51811 42055 PM

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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PERFORMANCE IDENTICAL

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FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

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This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

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Page 7: Government Fleet June 2011

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Optional available on select models EPA-estimated 17 city25 hwy20 combined mpg (Taurus SHOMKS) 16 city22 hwy18 combined mpg (FlexMKT) EcoBoost AWD

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6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

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8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

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10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

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12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

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As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

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bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

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bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

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GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

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If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

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To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 8: Government Fleet June 2011

6 Government Fleet June 2011

MAIL STOP

GF0511wexindd 1 42011 12621 PM

THE VALUE OF CREATING A FLEET ADVISORY BOARD

In reply to the Public

Forum editorial entitled

ldquoThe Value of Creating a

Fleet Advi-

sory Boardrdquo we

started a similar

program in

2009 which we

call the Fleet

Focus Group

(See May GF)

Our charge

is to meet

bimonthly and

discuss fl eet

topics and customer

inputs Although we did not

get off to a roaring start we

have been able to get the

team into a performing mode

and do address key issues and

topics There is more value

in these types of groups than

a lot of people give credit

When your customer groups

are represented they are

more vested in the outcomes

As a fl eet professional I

see these groups as a tool to

get my fl eet more customer-

focused

Dennis Hogan CPFPCAFM

Fleet Services Manager Fleet Services Division

City of Cedar Rapids Iowa

SCARY TIMESThe major challenges

facing Douglas County

Ore are a tight budget with

rapidly rising fuel costs Irsquom

at a break-even

point on budget

expenditures

halfway through

the fi scal year and

anticipate being

way over-budget at

the end

In addition I

am facing pressure

to outsource more

and more functions

of fl eet We are

constantly having to defend

our position with the private

sector Of course we have the

anti-government sentiment

out there The consensus of

the general public is the belief

that most if not all func-

tions of government should be

privatized This is under-

standable with the course the

federal and local governments

have taken over the past sev-

eral years Recently Multno-

mah County Ore to the north

of us has made the decision to

privatize its entire fl eet opera-

tion In my opinion not the

best fi nancial decision but a

sign of the times nonetheless

We are also facing a funding

crisis in our County due to

the expiration of the Federal

Safety Net Funding at the end

of the next fi scal year We are

looking at about 50-percent

reduction in Public Works

and 35-40 percent for General

County This makes the bud-

geting process very diffi cult to

say the least

We are coping with these

challenges by implement-

ing various changes in our

fl eet operation These include

outsourcing the body and tire

shop functions downsizing the

fl eet due to funding and the

economic downturn making

corresponding reductions in

full-time employees keeping

vehicles and equipment much

longer and going to extended

oil change intervals to name

a few On the positive side

there is some good to come out

of tight fi nancial times The

current economic situation has

forced this County to identify

any ineffi ciencies and make

adjustments accordingly One

could look at Douglas County

as a microscopic picture of

what is happening nationwide

Scary times

Michael BlanckFleet Services Director

Douglas County Fleet ServicesRoseburg Ore

DECISIONS WILL CREATE A FLEET MAINTENANCE CRISIS

The continued decision to

forego vehicle replacement

to provide budget savings

is posing a danger to public

sector fl eets This type of

decision is typically made

by City management In

our case the City Council

has annually under-funded

vehicle replacement Over

time these decisions will

ultimately create a crisis in

fl eet maintenance

Author wished to be anonymous

LIMITED PUBLIC SAFETY APPLICATIONS WILL STUNT ALT-FUEL GROWTH

The political unrest in the

Middle East and the improv-

ing economy are responsible

for record fuel prices I believe

one of the main factors that

kept the price of fuel down

was the recession As the

economy improves fuel prices

will rise

Small progress is made

each year on green fl eet

sustainability initiatives

as grant monies are avail-

able As the price of fossil

fuels rise alternative fuels

become more cost effective

The biggest challenge is the

a

p

e

h

t

a

w

th

am

to

an

TEACHING PUBLIC OFFICIALSIn my 23 years as a public employee

Irsquove seen many newly elected offi cials

start offi ce with excessive emotional ig-

norance In their quest to ldquofi xrdquo fi scal ir-

responsibility they mistakenly identify

the enemy as the most visible resources

providing public services mdash the front-

line workers and their equipment

On any scale global or local nothing

is more costly than combining power

and ignorance The bumper sticker ldquoIf

you think education is costly try igno-

rancerdquo could appropriately be applied to

government

Retired Public Works Director Bill

Sterling (City of Greeley Colo) wrote

a noteworthy American Public Works

Association (APWA) book on managing

the cost of fl eet equipment However it

was above the understanding of elected

offi cials I have wanted to write an

educational aid targeting entry-level

elected offi cials explaining the ldquonuts

and boltsrdquo of fl eet cost management and

how integrating fl eet best practices can

be measured annually so that costly

privatization studies arenrsquot initiated

every three to four years

This concept began when a former

City Councilman (now a State Repre-

sentative) wanted to privatize two City

services (fl eet and refuse) because as

he put it ldquoprivate enterprise can always

do it more economicallyrdquo After suc-

cessfully defending the lower cost and

higher effi ciency of our fl eet division I

have this elected offi cial on videotape

stating ldquoWhen I started this crusade to

privatize fl eet I was so sure it could be

done cheaper mdash and I was so wrong

Yoursquore doing a great jobrdquo

That public exoneration only lasted

until the next zealous politician was

elected to local power

Stephen Kibler ACFM Fleet Manager

City of Loveland Colo

GF06_Lettersindd 6GF06_Lettersindd 6 51811 41748 PM51811 41748 PM

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 9: Government Fleet June 2011

ConvenienceControl amp Security

the convenience of universal acceptance purchase controls that help you

keep expenses on track and products to help you avoid risk and fraud

Yoursquoll gain knowledge and insight into your fl eet operations that will result

in savings you never knew existed Your drivers wonrsquot waste time looking

for a station in a remote discount network and you wonrsquot have to worry

about unauthorized purchases slipping through

For additional security our WEXSMARTTM GPS vehicle tracking units are

the perfect solution for reducing the risk of stolen vehicles or property

And our robust reporting tools can compare the location of your vehicles

with the location of where the fuel card is being used - now thatrsquos security

Product Type Controls - means strict adherence to company purchasing policies

Level 3 Data Capture - provides information to help you make better fl eet management decisions

Universal Acceptance - means access to over 90 of all US fuel sites

Rethink the way you manage your fl eet

18003950812wrightexpresscom

GF0511wexindd 1 42011 12621 PMGF06_Lettersindd 7GF06_Lettersindd 7 51811 41750 PM51811 41750 PM

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

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bull Blind Spot Monitoring (BSM)2

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with low-risk deployment3

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bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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PERFORMANCE IDENTICAL

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EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 10: Government Fleet June 2011

8 Government Fleet June 2011

MAIL STOP VP and Group Publisher

Sherb Brown(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorCindy Brauer

(310) 533-2558 bull CindyBrauerbobitcom

Senior EditorsLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Grace Lauron(310) 533-2414 bull GraceLauronbobitcom

Field EditorsBob Cavalli Al Cavalli

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640

FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

AF0611toyota_siennaindd 1 5911 45842 PM

time it takes to recover the

incremental cost between

the lower-priced fossil-fuel

vehicle and the higher-priced

alternative-fuel vehicle

As the difference between

fuel prices grow the cost

recovery is more viable in the

short term

The largest percentage of

municipal fl eet vehicles are

and will be in public safety

Until good alternative-fuel

solutions are available (that

police offi cers and fi refi ghters

will accept) in police patrol

vehicles and fi re apparatus

the use of alternative-fuel

vehicles by municipalities will

be limited

Author wished to be anonymous

IS IT WORTH THE COSTWe know that alt-fuel

vehicles produce fewer emis-

sions but is the cost worth it

I recently spoke to a conver-

sion shop in Texas that said

to convert a DT466 to LPG or

CNG it would cost $80000

Not in 50 years would that pay

for itself and that is on a used

truck that may not be worth

$20000 at the time of the

conversion

E-mail from Jerry Shrum

CURIOUSI read [in the GF eNews-

letter] that the City of Char-

lottesville Va estimates

it is saving $100000 on

fuel and maintenance after

replacing aging City vehicles

with hybrids and other alt-

fuel vehicles However I am

curious as to what the total

expenditure was to purchase

the 45 alternative-fuel ve-

hicles including the hybrids

Was any of this subsidized

by federal incentives How

did you calculate the fuel

savings Although you are

saving in fuel costs what is

the break-even point How

long do you have to retain

the vehicles to realize true

savings

Clyde OmijaAssistance Chief

Division of Automotive Equipment Services

City amp County of Honolulu

The news item on the City of Charlottesville Va appeared in the March 17 edition of Government

Fleetrsquos e-mail newsletter GF

eNews According to the City of

Charlottesville it uses 45 alternative-fuel vehicles including16 bi-fuel (CNG and gasoline) vehicles 21 hybrid-electric vehicles and five flex-fuel (ethanol and gasoline) vans

mdash Editor

VP and Group PublisherSherb Brown

(310) 533-2451 bull SherbBrownbobitcom

PublisherEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Editor and Associate PublisherMike Antich

(310) 533-2467 bull MikeAntichbobitcom

Managing EditorLauren Fletcher

(310) 533-2415 bull LaurenFletcherbobitcom

Senior Editor Grace L Suizo

(310) 533-2414 bull GraceSuizobobitcom

Associate EditorThi Dao

(310) 533-2544 bull ThiDaobobitcom

Web EditorGreg Basich

(310) 533-2572 bull GregBasichbobitcom

Production DirectorManagerKelly Bracken

(310) 533-2574

Brian Peach(310) 533-2548

Art DirectorVince Taroc

Editorial ConsultantHoward Rauch

DISTRICT ADVERTISING MANAGERS

PublisherSales ManagerEric Bearly

(310) 533-2579 bull EricBearlybobitcom

Great LakesRobert Brown Jr

1000 W University Dr Ste 209Rochester MI 48307

(248) 601-2005 FAX (248) 601-2004

RobertBrownbobitcom

Sales amp Marketing CoordinatorTracey Tremblay(310) 533-2518

Chairman Edward J Bobit

President amp Chief Executive Offi cerTy F Bobit

Chief Financial Offi cerRichard E Johnson

Business and Editorial Offi ceBobit Business Media 3520 Challenger Street

Torrance CA 90503-1640FAX (310) 533-2503

Change Service Requested Return AddressGovernment Fleet

PO Box 1068Skokie IL 60076-8068

Printed in USA

STATE OF PUBLIC SECTOR FLEET MANAGEMENT

Higher fuel prices appear to be a never-

ending saga that looks to only get much

worse with time Our budgets are already

tapped to the max and rising fuel prices are

diverting precious funds to cover the fuel

budget shortage Not only do we need to cov-

er the shortage in the fuel budget but many

of the other items in our operating budget are

impacted by the rise in petroleum prices mdash

either because the freight to get the product

to us increases our cost to do business or

because petroleum is an important element

in producing the products we need to service

vehicles (eg motor oil tires belts etc)

The fuel budget debacle needs to be man-

aged but the thing I worry about most of

all is the loss of earning power for my staff

because of no increase in pay for more than

four years along with a reduction in their

employee perks Virginia is a right-to-work

state and pay and benefi t increases have nev-

er been onerous to begin with In 1982 when

I joined city government in Indianapolis one

could expect an annual pay increase in the

neighborhood of 5-7 percent each and every

year with very generous benefi ts mdash boy are

those days gone As I said we havenrsquot seen

a pay increase here in Lynchburg for four mdash

now going on fi ve mdash years We have had to

suffer through furlough days and beginning

with the next fi scal year employees will

be asked to pay 5 percent into their retire-

ment plan which was previously covered by

government This will impact our ability to

hire talented employees (something that has

already been a challenge for the last several

years) and will make it diffi cult for us to

retain the ones we have spent several years

training to meet our needs

I plan to retire within the next couple

of years so Irsquoll make do but my younger

employees may rethink whether government

is the type of stable business where they want

to work This is a shame considering that

more than ever we need their skills to service

technologically advanced vehicles and manage

a business practice requiring the best talent we

can get

John McCorkhill Jr CFMCAFMCEMCPFPDirector of Fleet Services

City of Lynchburg Va

GF06_Lettersindd 8GF06_Lettersindd 8 51811 41750 PM51811 41750 PM

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 11: Government Fleet June 2011

ldquo Mommy Like Daddy Like CFO Likerdquo

ndashndashndashInInIntetetelllllll iCiCCiCChohohohooicicicicce eeeee sasasas ysysyss tttthehehe SSSieieieennnnnnaaa hahahas s s ththe e ldquoHldquoHldquo igighehestst ReReReReetatataaininininedededededd VVVVVValalalalueueuerdquordquordquordquo111 iiin n n ititits s s clclclasasasss

The Toyota Sienna

Therersquos plenty to like Including a big interior thatrsquoll give you more than enough storage to fit just about anything for your business And when it comes to bottom-line efficiencies consider this According to IntelliChoice Sienna has the ldquoHighest Retained Valuerdquo1 in its class And whatrsquos not to like about its low operating costs and high resale value You like We thought you and your bottom line might To make Sienna a fleet vehicle and an asset to your business call 1-800-732-2798 or go to fleettoyotacom

Options shown 12011 IntelliChoice wwwIntelliChoicecom Minivan copy2011 Toyota Motor Sales USA Inc

AF0611toyota_siennaindd 1 5911 45842 PMGF06_Lettersindd 9GF06_Lettersindd 9 51811 41752 PM51811 41752 PM

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 12: Government Fleet June 2011

10 Government Fleet June 2011

INDUSTRY NEWS

CHARLOTTE NC ndash Government Fleet magazine named its three fi nalists for the

2011 Public Sector Fleet Manager of the

Year award at the 2011 NAFA Institute amp

Expo (IampE) during Bobit Business Mediarsquos

awards presentation The award is spon-

sored by ARI and Fleet Counselor Services

The three fi nalists are

bull Paul Condran equipment mainte-

nancefl eet manager City of Culver

City Calif

bull Samuel Lamerato CPFP superin-

tendent of fl eet maintenance City of

Troy Mich

bull Erle Potter PE CEM state equip-

ment manager Virginia Dept of

Transportation (DOT)

Fourteen nominees competed for this

yearrsquos award See the May issue of GF

for all nominee bios

The winner will be announced at the

Government Fleet Expo amp Conference

in San Diego

2011 PUBLIC SECTOR FLEET MANAGER OF THE YEAR FINALISTS NAMED

Government Fleet Managers Receive Goill amp Sustainability Awards CHARLOTTE NC ndash Government fl eet managers were hon-

ored at this yearrsquos NAFA Institute amp Expo (IampE) in Charlotte

for their fl eet management ideas and sustainability initiatives

Bob Stanton CPM CPFP former director of Polk County

(Fla) Fleet Management (now with Hillsborough County Fla)

received the 2011 Larry Goill Quality Fleet Management Idea

Award for incentivizing County drivers to drive more fuel ef-

fi ciently offering a payout if they achieved better fuel mileage

According to NAFA this led to fuel consumption reduction of

nearly a half million gallons decreased preventable accidents by

22 percent and saved the County more than $15 million

Bryan Flansburg CAFM director of transportation services

for the University of Colorado received the Goill Award for

implementing an automated motor pool vehicle check-in system

The system resulted in a 60-percent reduction in motor pool staff-

ing according to NAFA

NAFA awarded the Sustainable Fleet Award to Angela

Sherick-Bright acting assistant general manager for the City of

Los Angeles General Services Department which operates ap-

proximately 450 refuse vehicles that run on alternative fuel

Gerry Calk fl eet offi cer for the City of Austin Texas also

received a Sustainable Fleet Award The Austin fl eet has

signifi cantly raised its alt-fuel vehicle and equipment

percentage since 2007

2012 GFX SET FOR DENVERGovernment Fleet Expo

amp Conference 2012

will take place at the

Colorado Convention

Center in Denver June

18-20 2012

Mario Gionet (center) NAFA VP for Canada and Northern Region Trustee pre-sented the Goill Awards to Bryan Flansburg (left) and Bob Stanton (right)

Gerry Calk and Angela Sherick-Bright received Sustainable Fleet Awards

POTTERLAMERATOCONDRAN

PHO

TOS

BY

GA

RY

WIE

N

PHO

TO B

Y G

AR

Y W

IEN

GF06_Indyindd 10GF06_Indyindd 10 51811 32831 PM51811 32831 PM

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

Sentry Keyreg anti-theft system

bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

bull Standard advanced multistage driver and front passenger air bags

with low-risk deployment3

bull Standard Stow rsquon Go seating and storage system

bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

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FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

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24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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PROPANE AUTOGAS VS GASOLINE

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UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

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GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

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increase in service revenue while payroll expenses

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With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 13: Government Fleet June 2011

LEASED OR OWNED

Wersquove got the tools for your fl eet

Every fl eet manager knows that

no matter the fl eetmdashleased or

owned big or smallmdashtherersquos a

unique set of tools needed to run

it right Thatrsquos what Fleet Solutions

ismdasha single source of fl eet

management tools and services

that help you manage your fl eet

with unmatched fl exibility

wwwfleetsolutionscom1-866-6LEASES

GF0111merchantsindd 1 12710 13720 PMGF06_Indyindd 11GF06_Indyindd 11 51811 32842 PM51811 32842 PM

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

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As a dArr eet manager you have enough on your mind Thatrsquos why the new

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you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

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1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

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GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

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FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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PERFORMANCE IDENTICAL

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EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 14: Government Fleet June 2011

12 Government Fleet June 2011

INDUSTRY NEWS

Obama Plan Will Increase Alt-Fuels in Fed FleetWASHINGTON ndash President Barack

Obama outlined his administrationrsquos plans

to reduce dependency on foreign oil and

move toward a more sustainable eco-

nomic model One aspect of this plan is to

convert the federal fl eet which consists of

more than 600000 vehicles to hybrid and

other alternative-fuel models His plan

calls on federal agencies to ensure that by

2015 all new vehicles they purchase will

be powered by alternative fuels

The plan cited the General Service

Administrationrsquos (GSA) purchase of

5603 hybrid vehicles in 2010 which

doubled the number in the federal fl eet

as progress toward the goal of greater

energy independence GSA is also

preparing to purchase 100 plug-in hybrid

electric vehicles (PHEVs) which are

scheduled for delivery this year

The plan also cited the 355 mpg 2016

average fuel economy standards as part

of the plan to reduce dependence on

foreign oil In July the EPA will fi nalize

fuel economy and greenhouse gas emis-

sions standards for commercial trucks

vans and buses built between 2014 and

2018 The administration also announced

it will introduce a proposal for fuel

economy and greenhouse gas emissions

standards for passenger vehicles from

2017 through 2025 in September

CHICAGO TO COMBINE FLEET AND GENERAL SERVICES DEPARTMENTSCHICAGO ndash Chicagorsquos Mayor-elect Rahm Emanuel announced that David Reyn-

olds the new Commissioner will lead the Department of General Services which

will incorporate the Cityrsquos Department of Fleet Management Making good on his

promise to make the fl eet smaller and ldquogreenerrdquo Emanuel said Reynolds will use

his background in green technology and sustainable development in managing the

fl eet and City facilities As of press time Fleet Management and General Services

are separate departments in the City

ldquoAs Commissioner David Reynolds will manage all City government property

from facilities and leases to the vehicle fl eet He will be charged with improving

the energy effi ciency of City buildings and vehiclesrdquo Emanuel said

Fleet Management maintains approximately 12400 units

DOE Announces $5M in Clean Cities Grants WASHINGTON ndash Energy Secre-

tary Stephen Chu announced that $5

million in funding is available for

community-based efforts to deploy

electric vehicle infrastructure and

charging stations

Local governments and private com-

panies will partner to apply for funding

to help accelerate installation of EV

charging stations and infrastructure

More information about the funding

opportunity including application

instructions and deadlines is avail-

able at FedConnectnet under the title

ldquoDE-FOA-0000451 Clean Cities FY

2011 FOArdquo

Washington State Patrol Switches to Honda ST1300PAOLYMPIA WA ndash The

Washington State Patrol has

started the transition from

using BMW motorcycles to

the Honda ST1300PA There

are currently 43 full-time

troopers on motorcycles

across the state and 12 have

just completed the transition

according to the Washington

State Patrol

The unit was specifi cally manufactured for law enforcement use The Honda was

chosen because of the balance maneuverability acceleration overall performance

availability of service and lower purchase and maintenance costs according to the

Washington State Patrol

WIXOM USING BLUETOOTH IN CITY VEHICLES WIXOM MI ndash The City of Wix-

omrsquos (Mich) Department of Public

Works is using a low-cost cell-

phone-based communications solu-

tion to improve driver effi ciency

The City wanted a solution that

would enable drivers to use their

cell phones safely while operating a

vehicle The City tested a Bluetooth

solution from Got2bWireless on a

small number of vehicles In com-

parison to several thousand dollars

per vehicle for digital radios the Bluetooth solution costs less than $200 per unit with

installation included The Bluetooth device integrates with the vehiclersquos radio station

With the success of the test program Public Works Director Mike Howell decided

to roll out the solution across the Cityrsquos fl eet of 12 vehicles Howell said the improved

communications allow him to direct vehicle operators to different locations and driv-

ers to continue with their tasks in a more effi cient manner

For more information about Got2bWireless e-mail inquirygot2bwirelesscom

As of press time 12 troopers have already completed the transition to Honda motorcycles

The City of Wixomrsquos fl eet consists of fi ve Sterling dump trucks and seven Ford pickup trucks

PHO

TO C

OU

RTE

SY W

ASH

ING

TON

STA

TE P

ATR

OL

GF06_Indyindd 12GF06_Indyindd 12 51811 32844 PM51811 32844 PM

All Dodge vehicles are backed by the unsurpassed

5-Year100000-Mile Powertrain Limited Warranty5

fleetchryslercom 800-999-FLEET

THE FORWARD -THINKING VEHICLE

FOR THE FORWARD-THINKING BUSINESS

As a dArr eet manager you have enough on your mind Thatrsquos why the new

2011 Dodge Grand Caravan makes for a dArr eet favorite It does everything

you could ever ask for in a versatile reliable and safe mobile ofrArr ce on wheels

bull All-new 36L DOHC Variable Valve Timing (VVT) Pentastarreg V6 with available

Flex-Fuel capability

bull Standard and comprehensive Electronic Stability Control (ESC) system1 and

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bull Blind Spot Monitoring (BSM)2

bull Rear Cross Path (RCP) Detection audio and visual alerts2

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with low-risk deployment3

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bull Outstanding fuel economy (17 mpg city25 mpg hwy)4

1Always drive carefully consistent with conditions Always wear your seat belt and obey trafrArr c laws 2Always check entire surroundings before backing up or changing lanes 3Always sit properly in the seat with the seat belt fastened 4EPA estimate Mileage may vary 5See dealer for complete details and a copy of the 5-Year100000-Mile PowertrainLimited Warranty copy2011 Chrysler Group LLC Dodge and the Pentastar logo are registered trademarks of Chrysler Group LLC FIAT is a registered trademark of Fiat GroupMarketing amp Corporate Communications SpA used under license by Chrysler Group LLC

GF06_Indyindd 13GF06_Indyindd 13 51811 32850 PM51811 32850 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

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FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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PERFORMANCE IDENTICAL

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FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
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Page 15: Government Fleet June 2011

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We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

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FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

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GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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PERFORMANCE IDENTICAL

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EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 16: Government Fleet June 2011

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWAREWhether yoursquore a State Municipal or Federal agency our fleet management software helps you manage and effectively maintain your equipment from initial specification through disposal regardless of size complexity or geographical spread

If yoursquore a Municipal agency you may face pressures to extend vehicle replacement cycles relentless mandates for staff reductions and cost cutting as well as political pressure to implement green fleet initiatives

We can give you real-time visibility over complete fleet running costs and utilization queries reports and key performance indicators can be used to accurately predict the right time for vehicle replacement Our fleet management software enables you to increase the value and operating life of equipment by ensuring proper maintenance schedules are adhered to while improving workshop productivity and inventory turns Yoursquoll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 14GF06_Indyindd 14 51811 32850 PM51811 32850 PM

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

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increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 17: Government Fleet June 2011

If yoursquore a State agency the trend towards centralization and consolidating of fleet functions may be a challenge You may face increased scrutiny by your customers concerning escalating charge back rates while trying to achieve fleet downsizing goals

Our enterprise fleet management system FleetWave provides a comprehensive suite of flexible General Service fleet tools to support your tactical requirements while providing a holistic view of all fleet related information This allows you to aggregate accurate operational and maintenance costs and automatically generate precise transparent and timely billing for vehicle usage based upon any organization hierarchy With the ability to benchmark fleet utilization based upon the agency department or driver you can use these statistics to make fact based right-sizing decisions

If yoursquore a Federal agency you may be under pressure to reduce greenhouse gas emissions and shrink your dependency on petroleum all while right-sizing your fleet without impacting mission readiness You probably spend countless hours gathering

data to meet regulatory reporting requirements such as DOE and FAST reporting

FleetWave offers unparalleled flexibility and can automatically process and track complete fuel details from any p-card or fuel card provider and seamlessly present your achievements based on benchmarks or scorecards FleetWave can aggregate unlimited data from GSA commercial lessors national accounts and internal workshops then share these details with internal finance and property management systems Yoursquoll achieve organization-wide visibility over utilization and running costs while supporting field level needs for maintenance operator and fuel management functionality

To get on board with Chevin please contact us to arrange a free system review Call (781) 793-0788email saleschevinfleetcomor visit wwwchevinfleetcom

GF0311chevinindd 2-3 22211 94859 AMGF06_Indyindd 15GF06_Indyindd 15 51811 32851 PM51811 32851 PM

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 18: Government Fleet June 2011

16 Government Fleet June 2011

While the image of fl eet manage-

ment has improved many still

donrsquot know about its importance

mdash or sometimes its existence Through ef-

fective communication fl eet managers can

put their industry on the radar

HOW IMAGE IMPACTS OPERATIONS

Fleet maintenance is not ldquothrowing

partsrdquo at a vehicle itrsquos not a simple task

everyone can do Fleet is an integral part

of government operations that requires

training and knowledge of technol-

ogy but some still think of it as a

ldquodirty garagerdquo Itrsquos important then

that fl eet managers lead the way

in informing citizens and offi cials

about fl eet operations and dispel

possible myths

Some fl eet managers report that

the public is aware of fl eet operations

ldquoVehicle-related issues resonate mdash for

example the average citizen can relate to

the concept of a take-home vehicle and

what it is worth because they know

what it takes to buy maintain and

fuel their own vehiclerdquo said Rick

Hilmer CAFM fl eet administra-

tor for Prince Georgersquos County in

Maryland

Others havenrsquot had the same ex-

perience ldquoI think the public gener-

ally doesnrsquot have much of a view about us

because they donrsquot know we existrdquo said

Gary McLean fl eet manager for the City

of Lakeland Fla ldquoCommon mispercep-

tions that Irsquove run into is that wersquore

not really accredited or educated

like other management positions

that wersquore basically just running

the maintenance side of thingsrdquo

And then there are those who

are misinformed about fl eet People

mostly males ldquotend to consider

themselves mechanically inclined even

if the only repair theyrsquove ever performed

on their personal vehicle is changing a fl at

[tire] or engine oil and fi lterrdquo said Stephen

Kibler ACFM fl eet manager for

the City of Loveland Colo ldquoThey

witness a government vehicle sitting

in a parking lot and assume all city

vehicles are underutilizedrdquo

Itrsquos also seen as a non-profession-

al department ldquoThey think itrsquos still

a lsquogrease monkeyrsquo operationrdquo said

Ernie Ivy director of fl eet management

for the City and County of Denver ldquoMany

people donrsquot realize how highly technical

this profession has becomerdquo

Some communication methods for improving fl eet image includebull Engage with the public through the

media fairs and toursbull Keep an open line of communication with

user departments and supervisors and provide them with facts

bull Promote recognition of fl eet achieve-ments to public offi cials

AT A GLANCE

IVY

KIBLER

ENHANCES FLEET

BY THI DAO

EFFECTIVE COMMUNICATION

GF06_Educateindd 16GF06_Educateindd 16 51811 32916 PM51811 32916 PM

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 19: Government Fleet June 2011

Government Fleet June 2011 17

When others see fl eet management as

a replaceable or less-than-professional ser-

vice it makes it an easier target come time

for budget reviews budget cuts and talks

of outsourcing mdash making it all the more

important to communicate the role fl eet

plays in government services

ASSERTING THE IMPORTANCE OF FLEET

How can fl eet management assert the

importance of fl eet Consider highlighting

the following facts

Expertise ldquoLike most municipalities

our fl eet is made up of 28 different class-

es of vehicles and equipmentrdquo Kibler

said ldquoThe misconception is that the local

lube shop can service a fi re truck for their

$2999 specialrdquo Ask any local shop and

chances are they donrsquot service the vari-

ety of equipment fl eet management does

Make sure people know this mdash Love-

landrsquos local shop doesnrsquot service equip-

ment and offi cials didnrsquot know it

Thoroughness ldquoBreak it down to

the apples-to-apples comparisonrdquo Kibler

continued Compare a local shoprsquos in-

spection task list with fl eet managementrsquos

inspection list ldquoWhen you lay them side-

by-side and compare them for somebody

who is not familiar with the industry the

difference is obvious Wersquore much more

thorough much more precise in measure-

mentsrdquo he said

Not-for-profi t Keep in mind that

fl eet management doesnrsquot need to make

a profi t but private shops do ldquoWe donrsquot

have to make a profi t so we have always

had lower pricesrdquo Ivy said

Essential Therersquos no denying fl eet

has a huge impact on government op-

erations ldquoFleet operations are among the

most visible and direct of government

services Garbage pickup snow remov-

al policing emergency and ambulatory

response street repair and tree main-

tenance are just a few of the street level

public services that rely extensively on

specialty vehicles and operators for their

deliveryrdquo said Keith Kerman assistant

commissioner Citywide Operations City

of New York Parks amp Recreation

ldquoFleet serves as part of the infrastruc-

ture in which nearly all other departments

relyrdquo added Gary Lykins fl eet mainte-

nance director of the Town of Jonesbor-

ough Tenn

Kibler noted the importance of pre-

ventive maintenance (PM) which while

essential may be one of the fi rst services

targeted during budget cuts ldquoPM is direct-

ly related to delivery of cost-effective ser-

vices to citizensrdquo Kibler said When

vehicles fail in the fi eld services do

not get done

Alt-Fuel Leader Many fl eets

are testing out the latest alt-fuel

technologies ldquoPublic fl eet manag-

ers have a unique and important

opportunity to lead the nation in

the transition to alternative fuelsrdquo Ker-

man said ldquoPublic fl eets are natural trial

and pilot locations for new technologies

Fleet managers can play a critical role in

both testing new technologies as part of

active operations and in using their pub-

lic status to promote and educate the pub-

lic about themrdquo

Considering the crucial role fl eet

plays in government operations how

can fl eet managers convey this message

to others The key is to communicate

effectively with core audiences public

offi cials citizens supervisors and user

departments

INFORMING PUBLIC OFFICIALSInforming decision-makers about fl eet

operations is essential When it comes

time to make decisions regarding fl eet

services itrsquos best that theyrsquore as informed

as possible and know that fl eet is more

than just a bottom-line number

Lead Tours Facility tours are an ef-

fective way to inform others about fl eet

management and many fl eets have al-

ready taken advantage of this method

Sam Lamerato CPFP fl eet mainte-

nance superintendent City of Troy Mich

has been offering tours for about seven

years to City Council members admin-

istrators and the public The City holds

two to three tours annually They start in

the early evening during a regular shift

and include a light dinner a PowerPoint

presentation and walk-through tour and

live demonstration to meet technicians

and see them in action

ldquoThe technicians demonstrate repairs

theyrsquore making different types

of diagnostic equipment that are

needed and that we own or need to

purchase to do our jobs much more

effi cientlyrdquo Lamerato said ldquoWhen

we write ad memos for this type of

equipment diagnostic equipment

or replacement of vehicles the

City Council [members] can refl ect back

LAMERATO

Increasing professionalism is helping drive fl eet management out of the ldquodirty garagerdquo stereotype Effective communication with public offi cials citizens supervisors and customers can further improve the image of fl eet operations

GF06_Educateindd 17GF06_Educateindd 17 51811 32919 PM51811 32919 PM

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

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Validate time spent on the job

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Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

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costs in their segment determined by measuring eight cost factors For

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For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

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GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
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  • GOVF_2-3
  • GOVF_4-5
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Page 20: Government Fleet June 2011

18 Government Fleet June 2011

C O M M U N I C A T I O N

on their tour and put that knowledge for-

ward and tell the other Council members

who may not have been in our tour the

importance of what we do hererdquo

Ivy from the City and County of Denver

calls new appointees overseeing fl eet with

a personal tour invitation and he

says they almost always accept Dur-

ing the tour ldquowe explain to them all

facets of how fl eet operates Theyrsquore

all impressed and then they under-

stand more of how we operaterdquo he

said In fact he recalled one new

deputy mayor was so enthralled with

fl eet operations she stayed for fi ve hours

(usually a three-hour tour)

Personifying fl eet services is a goal of

facility tours Ron Crowden fl eet manager

for the City of Augusta Ga said during

tours offi cials ldquocan see what their $54

million budget is paying for and it gives

them a chance to ask questions This helps

build rapport and trust and they can put a

name with a facerdquo

Promote Recognition According to

Kelly Reagan fl eet administrator for the

City of Columbus Ohio promoting achieve-

ments to City Council is one way to com-

municate the importance and excellence

of the fl eet department ldquoWhen we have a

time of recognition for our employees we

always invite City Council and we include

them in recognition ceremonies They are

the ones recognizing the employees from

the fl oor and giving out awards ac-

colades letters and handshakesrdquo he

said ldquoAnd as you include City Coun-

cil members you begin to educate

them on your processesrdquo Reagan

added that asking for a resolution

of recognition to be voted on by the

Council further puts a success story

in front of Council members Achievements

can include ASE (Automotive Service Ex-

cellence) Blue Seal and EVT (emergency

vehicle technician) certifi cations and 100

Best Fleets inclusion

Provide Information In addition to a

tour of the facility and meeting staff Mark

Crawford fl eet services manager of San-

dia National Laboratories Fleet Services in

Albuquerque NM schedules a presenta-

tion about fl eet activities to allow offi cials

to ask more in-depth questions ldquoThere are

several presentations to the different man-

agement levels and offi cialsrdquo to get to the

full chain of management he said

The Denver fl eet also shares its busi-

ness plan that includes a SWOT (strengths

weaknesses opportunities and threats)

analysis comparison to outside sources

Brian King fl eet manager at the State of

Oregon has attended various state

legislature meetings and hearings

at this yearrsquos session to provide tes-

timony on bills or proposed bills and

to answer questions that arise about

fl eet By speaking to him directly

legislators can get fi rst-hand accu-

rate information ldquoThat education is

important as wellrdquo he added ldquoAny informa-

tion that our offi cials can learn that dispels

some belief they have that is not based on

valid data is important to get acrossrdquo

Another way to provide information to

a group during a critical time is during the

Cityrsquos budgeting process At the City of

Lakeland McLean uses that opportunity

to ldquofi re-hose PowerPoint shows talking

papers and anything else I can get in front

of our upper level leadership and elected

offi cials about how we develop our billing

processes why things cost what they do

and the level of support we provide to our

customers for the moneyrdquo he said

Cooperate with Other Departments The State of Georgia self-insures for all

lines so fl eet management has a direct im-

pact on agency and state funds according

to Ed Finnegan director Offi ce of Fleet

Management for the State ldquoI have

tried to connect Fleet with Risk

Surplus and Purchasing by demon-

strating the interdependence and the

effi ciencies produced by coopera-

tionrdquo he said ldquoThis has allowed the

Offi ce of Fleet Management to have

input with legislators and the Offi ce

of Planning and Budgetrdquo

COMMUNICATING WITH CITIZENSPromoting fl eet services to offi cials

can go hand in hand with promoting it

to the public At the City of Columbus a

tour with Councilwoman Priscilla Tyson

led to excellent results ldquoCouncilwoman

Tyson wants the message to go out to the

community that good things are happening

in the division of fl eet for the City of

Columbusrdquo Reagan said She suggested a

hearing date so that fl eet management can

tell its story to the general public

The City of Troyrsquos Citizenrsquos Academy

tours capping at 18-20 participants per

tour has a waiting list The City fl eet

also has special tours such as for older

Girl Scouts approaching legal driving

age Fleet put together a program for

them to demonstrate the importance of

changing oil and doing a safety inspec-

tion before they go on a trip how to check

tire pressure and how to change a tire

wiper blades and a tail light bulb ldquoItrsquos an

educational program I really think fl eet

managers and fl eet operations need to go

out and show the public what theyrsquore all

aboutrdquo Lamerato said

The City of Lakeland has raised aware-

ness with an ldquoall-out media blitzrdquo that

includes face-to-face meetings with cus-

tomers leadership elected offi cials and

vendors on a regular basis a bi-monthly

Mary Kerwin mayor pro tem for the

City of Troy Mich was fi rst introduced to fl eet services through the Fleetrsquos Citizenrsquos Academy in 2001 With 15 years as a policy maker Kerwin at the time of her tour was on the board of education Kerwin now works to approve funding for departments including fl eet services With the knowledge gained about fl eet through her tour she is able to make more educated decisions

ldquoIf I just sat at council and read a series of numbers facts and fi gures I think I would be far more removed from recognizing what is paramount to the fl eet maintenance division which really is quality of work teamsmanship and cooperationrdquo she said

During her tour she was able to witness fi rsthand the processes and complexity of servicing a vehicle from preventive maintenance to repairs to handling advanced technology in vehi-cles she said ldquoItrsquos far more than chang-ing out a tire or making a small repair Itrsquos in both prevention and breakage in keeping well-maintained equipment and the value [fl eet] adds because they are so diligent and careful in everything they do You would never read that from a list of columns [on a budget]rdquo

FLEET FROM ANOTHER PERSPECTIVE

KERWIN

REAGAN

KING

GF06_Educateindd 18GF06_Educateindd 18 51811 32920 PM51811 32920 PM

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 21: Government Fleet June 2011

ARI Strategic Consulting Team

With exceptional insight into our partnerrsquosvehicle usage we helped this fleet supporta corporate initiative

Partners at Work

When a long-time partner in education publishing made it a company-wide priority to reduce its carbon

footprint it turned to ARI for a custom fleet solution Noting that education is evolving away from bulky

hardcover textbooks in favor of DVDs and eLearning modules ARIrsquos Strategic Consulting team suggested

suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce

emissions Average MPG improvements translated into $200000 in fuel savings and a

581-ton reduction in CO2 emissions Some might call it ldquowriting the book on green fleetsrdquo

We call it ldquopartners at workrdquo

Read the full story and more at

wwwarifleetcompartnersatworkDriven Fleet Professionals Driving Results

For this education publisher big gas-guzzling vans are old school

L-R Tracy King Fleet Administrator Joe Korn Business Analyst Elisa Durand Assistant Manager Environmental and Fuel Strategies

ARI is the proud sponsor of the 2011 Public Sector Fleet Manager of the Year Be sure to visit us during GFX at booth 415

GF06_Educateindd 19GF06_Educateindd 19 51811 32922 PM51811 32922 PM

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

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GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

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and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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PERFORMANCE IDENTICAL

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FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 22: Government Fleet June 2011

20 Government Fleet June 2011

C O M M U N I C A T I O N

online newsletter published on the Cityrsquos

internal website communications through

an internal Fleet Management Web page

and seeking out local media on fl eetrsquos ef-

forts to do things ldquocheaper and betterrdquo ac-

cording to McLean

In public outreach Lakeland held a

Public Works night in its downtown park

ldquoWersquoll be doing public outreach to edu-

cate the citizens on fl eet what we do and

what we do well Wersquoll be passing

out information having contests

all kinds of stuffrdquo McLean said

ldquoWe just keep talking and hope

theyrsquore listeningrdquo

The State of Oregonrsquos fl eet

management division attends the

state fair each year to promote and

educate the public about its sustainability

efforts At its booth fl eet has alt-

fuel and hybrid fl eet vehicles set up

and it gets plenty of traffi c coming

through ldquoItrsquos an opportunity for my

[team] to be in the front line and

talking to the public about what we

dordquo King said

Daniel Nuckolls CAFM fl eet

services director at the City of Concord

NC said public outreach includes pub-

licizing successes within the fl eet

department by including articles in

City Circular Magazine the citizen

newsletter and press releases for lo-

cal newspapers ldquoI fi nd the citizens

most informed about fl eet issues

are those concerned with the envi-

ronment hence the importance of

that aspect of our jobs The bulk of fl eetrsquos

public exposure is through our air

quality effortsrdquo he said

Keith Condra director of fl eet

management at the Town of Fishers

Ind is also working on writing ar-

ticles in internal and external news-

letters to publicize fl eet ldquoKeeping

information in the forefront will

keep people thinking about the importance

and value of this divisionrdquo he said

When there are complaints or questions

from the public itrsquos best to answer promptly

King said he is always responsive when re-

ceiving inquiries or complaints that come di-

rectly to him about State of Oregon fl eet ve-

hicles ldquoIn some cases we are able to explain

questionable situations about why a State

vehicle might be at a certain locationrdquo he

said Being receptive to the public increases

accountability and at least for that citizen

raises the esteem of fl eet management

TALKING TO USER DEPARTMENTS AND SUPERVISORS

In communicating with supervisors

Kerman at New York Parks amp Recreation

reported better communication than in the

past ldquoAt Parks we ensure that fl eet opera-

tions and performance metrics relating to

the fl eet are presented as part of all senior

management meetingsrdquo he said ldquoOur

agency culture recognizes now how critical

these services are to all our core endeavors

and we engage all senior staff in discussing

them regularlyrdquo

While some fl eet departments may

have a direct supervisor knowledgeable

about fl eet this can decrease as communi-

cations go up the chain of command ldquoDo

not assume any given superior or offi cial

has more than a cursory knowledge of your

dutiesrdquo Lykins of Jonesborough said Arm

yourself with facts Cite statistics when

providing information and when writing

reports use facts and avoid opinion A

well-informed fl eet manager can enhance

the image of fl eet operations

ldquoWith every problem or concern I try to

bring solutions and continually try to show

our savings needs and improved servicerdquo

Condra of the Town of Fishers said about

communications with his supervisor

Customer service cannot be empha-

sized enough when communicating with

user departments ldquoInternal departments

have to be viewed like any customer that a

Dave Bush assistant director of fi nance and management at the City of Columbus Ohio who directly oversees the fl eet division says hersquos

seen a change in the past 25 years in the image of fl eet management mdash from ldquodirty and grungyrdquo to ldquomechanics with more formal training than a lot of other disciplines These guys are pretty knowledgeable and their diagnostics require them to use sophisticated technologyrdquo he said

With fl eet a division under fi nance and management Bush said this has led to some operational effi ciencies Fleet is more tied to the budgetary process for example fl eet is able to directly tell fi nance that replacing a unit or equipment is cheaper than maintaining it and fi nance is able to get a early report on how vehicle replacement funding will be spent before itrsquos even presented to oth-ers ldquoWersquore doing our homework on the front end so wersquove been able to move vehicle purchases more quicklyrdquo he said

Jim Greene deputy city manager for the City of Concord NC is the direct supervisor above the fl eet services department in addition to eight other departments He thinks face-to-face interaction is the best method of communication He and the fl eet director have drop-in meetings a few times a week in addition to e-mails and phone calls Scheduled monthly meetings with the city managers and department heads allow the fl eet director to discuss Council agenda items and other City issues he said ldquoE-mails are good and are sent often by Fleet Services to keep me informed on operations but I fi nd the face-to-face contact through informal drop-ins and formal staff meetings to be the most effective in communicating issues and concernsrdquo he said

SUGGESTIONS TO IMPROVE FLEET IMAGETo enhance fl eet image Bush at Columbus warned fl eet managers against being

esoteric Make sure the audience understands what ASE and EVT certifi cations mean what it means to be named among the 100 Best Fleets and what certain awards entail ldquoWersquore trying to be mindful that our audience is not in the industryrdquo he said

Greene suggested to ldquoget your fl eet staff involved and out of the shoprdquo At the City of Concord the fl eet director serves on and helps lead teams is a presenter to leadership groups and is involved with classes that introduce citizens to local government Chamber committees and civic groups The fl eet team also conducts facility tours By reaching out to citizens fl eet can enhance its image and inform the public about the service

ldquoTo be successful in educating the public city management should support and en-courage those community relations efforts for fl eet servicesrdquo Greene said

A WORD FROM THE SUPERVISORS

BUSH

GREENE

CONDRA

NUCKOLLS

GF06_Educateindd 20GF06_Educateindd 20 51811 32922 PM51811 32922 PM

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

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Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

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Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 23: Government Fleet June 2011

GF06_Educateindd 21GF06_Educateindd 21 51811 32927 PM51811 32927 PM

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

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When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

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THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 24: Government Fleet June 2011

22 Government Fleet June 2011

C O M M U N I C A T I O N

GF0511nishindd 1 41411 43912 PM

private shop has professionalism courte-

sy cost-effective repairs and maintenance

and being available for any emergency

situation [are important]rdquo said Jim

Miller fl eet supervisor City of

Sioux City Iowa

Show user departments respect

and understand that ldquoyou are com-

municating with peersrdquo Lykins add-

ed Use good manners and work the

ldquosoft sellrdquo when raising potentially

controversial issues such as right-sizing

equipment or not replacing under-utilized

equipment ldquoWhen they have issues ask

to go to the jobsite and see fi rsthand how

fl eet management may better assist themrdquo

he said

King at the State of Oregon said shar-

ing data with user department managers

can help inform them about their fl eet

costs and alternatives Toward the end of

last year he and his supervisor met with

heads of larger user departments to edu-

cate them on their fl eet vehicle costs For

many it was an eye-opening experience

In addition common courtesy can go

a long way Engage the customer Lykins

advised This can be as simple as asking

the driver how equipment is function-

ing when passing them in the hallway

or following up with a phone call after a

major repair or forwarding on an article

relevant to that departmentrsquos operation

ldquoWhen engaging the customer be ready

to hear the good with the bad and always

follow through with any actionable is-

sues that may arise during these engage-

mentsrdquo he said

Nuckolls at the City of Concord con-

tacts department directors via e-mail

phone or personal visit ldquoon matters deal-

ing with any abnormal maintenance issues

specifi cations vehicle requests for budget-

ing vehicle purchases accidents and fuel

usagerdquo he said He sends out a Fleet News

e-mail every month that includes fuel use

reports vehicle miles traveled and items

of interest

Keep often-asked questions and re-

quests handy Nuckolls advised ldquoThe pre-

pared fl eet manager keeps these things at

his fi ngertips because they are the lsquoheart-

beatrsquo of any fl eet

ldquoWe have developed a userrsquos guide that

operators can keep in their vehicles that

will answer most questions that arise about

using Fleet Servicesrdquo he added ldquoWe also

have an intranet page with pertinent infor-

mation and links Replacement schedules

and other reports are provided on

a routine basisrdquo Finally he makes

sure staff is familiar with the fl eet

management system so anyone can

provide needed information when

requested This improves the pro-

fessionalism of fl eet services and

streamlines customer requests

For New York Parks amp Recreation

transparency and service are key ldquoWe

developed an online tool called VOOS

vehicle out of service tracking that en-

ables customers to create vehicle work or-

ders on their own receive regular e-mail

updates on service and check the fl eet

history for their vehiclesrdquo Kerman said

ldquoThrough this means we communicate

to all staff senior and junior about the

status of their fl eet [vehicle] and offer im-

proved transparency and servicerdquo

ENHANCING FLEET IMAGEMany methods can be used to enhance

fl eet image and itrsquos up to the fl eet man-

ager to toot his own horn and that of the

division McLean of Lakeland empha-

sized certifi cation accreditation and vis-

ibility ldquoFleet managers need to get used

to talking themselves up and getting into

the limelight a little bitrdquo He added that

competing for awards writing for trade

publications and joining professional or-

ganizations besides fl eet-related entities

are also effective

Industry-recognized certifi cations such

as the ASE Blue Seal or CAFM and

CPFP designations and awards and

contests such as Government Fleetrsquos

Public Sector Fleet Manager of the

Year and Environmental Leadership

Award as well as the 100 Best Fleets

program are some ways to increase

professionalism and exposure and

can be used as a promotional tool

Various agencies use these forms of

recognition to put their staff in front of

elected leadership Oftentimes it will get

recognized by the mayor who may issue a

congratulatory press release or will lead to

a celebratory event such as the luncheons

held by City of Columbus fl eet

ldquoMake a name for your organization

locally statewide and nationally Properly

trained fl eet managers have the potential to

save their local governments a lot of mon-

eyrdquo Nuckolls of the City of Concord said

ldquoThat really is big news and programshellip

that highlight such accomplishments

should be shamelessly employedrdquo

Another reason to publicize good news

ldquoThe precarious image of the fl eet man-

agement department is proportional to the

most recent failurerdquo according to Lykins

of Jonesborough

Continued education and overall pre-

sentation are other big factors in increasing

professionalism and the fl eet image ldquoFleet

staff especially in the public sector needs

to modernize in presentation computer

literacy shop appearance and customer

servicerdquo said Kerman of New York Parks

amp Recreation

ldquoEducate yourself and never stop learn-

ing Trade magazines and forums are a

great source of self-educationrdquo Lykins

said ldquoNew information can often be the

catalyst for procedural improvements It

is in the best interest of the fl eet manager

and the organization one serves to be on

the cutting edge of what is going on in the

industryrdquo

When it comes to talking about fl eet

some may fi nd themselves tongue-tied

ldquoWe should help fl eet managers present

their important role to others and improve

their ability to discuss and educate on their

trades and to communicate to their cus-

tomersrdquo Kerman said

ldquoThe role that fl eet plays in maintain-

ing safety needs to be stressed at all times

We are part of the public safety infrastruc-

ture of the Countyrdquo said Hilmer of

Prince Georgersquos County

Finnegan at the State of Geor-

gia recommended partnering with

the safety department or risk man-

ager to highlight and improve fl eet

safety ldquoMake their goals consistent

with yours and then share in that

successrdquo he said

Something seemingly minor as person-

al presentation may make a big difference

in image ldquoIn my case the answer might be

to wear a tie more oftenrdquo Nuckolls stated

Finally while cultivating a professional

image is an important part of fl eet opera-

tions good quality and on-time work is es-

sential ldquoHalf the battle is relationships mdash

the other half is resultsrdquo Nuckolls said

LYKINS

FINNEGAN

GF06_Educateindd 22GF06_Educateindd 22 51811 32927 PM51811 32927 PM

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 25: Government Fleet June 2011

reliability

When your contract requires high performance Fleet Management services rely on AbilityOneAbilityOne helps fulfill your federal contract needs while enabling you to create employment opportunities for people who are blind or have other significant disabilities Our competitive Fleet Management services include

AbilityOneorg

GF0511nishindd 1 41411 43912 PM

GF06_Educateindd 23GF06_Educateindd 23 51811 32931 PM51811 32931 PM

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

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try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

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audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

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A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

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48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 26: Government Fleet June 2011

24 Government Fleet June 2011

AF0111roushindd 1 121310 125816 PM

Of all the many issues for todayrsquos

fl eet manager negligence bears

the most risk particularly in

the case of the corporate fl eet manager

For example what if in the eyes of a

court of law the acts of the fl eet manag-

er or fl eet department are not consistent

with the standards in the fl eet industry

Under todayrsquos legal system the corpora-

tion may be held liable for negligence

under civil law In certain instances

even the corporate fl eet manager could

be held liable under both criminal and

civil bodies of law

What about the government fl eet man-

ager Does the doctrine of sovereign im-

munity shield governments from tort liabil-

ity and to what extent could a government

fl eet manager be individually sued or sepa-

rately sued in a civil suit Moreover what

rights are due to persons suffering losses

as a result of the negligence of government

employees

The purpose of this article is to answer

LIABILITY RISK FOR GOVERNMENT FLEET ORGANIZATIONS UNDER CURRENT LAW

Most people no longer bat an eye when hearing about multimillion dollar damage awards to punish companies for an employeersquos negligent acts However what are the liability concerns for a public sector fl eet manager

BY JANIS CHRISTENSEN CAFM

copyISTO

CK

PHO

TOC

OM

DN

Y59

Important items fl eet managers should be aware of in regards to negligent entrustment include bull Negligence the most common tort has

the most risk for fl eet managers since negligence awards can be very large

bull To bring a negligence case against the federal government the claimant must have been damaged by the negligence or wrongful act of a federal employee acting within the scope of his or her employment in circumstances where a private person would be liable under the law of the state in which the negligence or wrongful act occurred

bull Most states have adopted individual state tort claim acts

bull Municipal and local government liability for negligence of their employees generally follows the law of the state in which the local entity is located

AT A GLANCE

GF06_Entrustmentindd 24GF06_Entrustmentindd 24 51811 33151 PM51811 33151 PM

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

sourced fuel with no engine modifications required That means yoursquoll get all the benefits of propane

autogas with no compromises in your vehiclersquos factory warranty protection

PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

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26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

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With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 27: Government Fleet June 2011

The Choice Is Clear mdash And CleanYour fleet can get the same horsepower and torque performance as gasoline for 30 less in fuel costs ndash

and with 60 fewer emissions mdash thanks to ROUSH CleanTech Liquid Propane Injection fuel systems

Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable North American-

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PERFORMANCE IDENTICAL

VEHICLE WARRANTY IDENTICAL

FUEL COSTS 30 LESS

EMISSIONS 60 LESS

PROPANE AUTOGAS VS GASOLINE

80059ROUSH ROUSHcleantechcom

20075 ndash 2008 2009 ndash 2010 2009 ndash Newer 2009 ndash Newer 2009 ndash NewerFord F-150 Ford F-250 F-350 Ford E-150 E-250 E-350 Ford E-350 DRW Cutaway Ford E-450 DRW Cutaway(54L V8) (54L V8) (54L V8) (54L V8) (68L V10)

UPFITS AVAILABLE

THE ZERO COMPROMISE ALTERNATIVE FUEL SOLUTION

AF0111roushindd 1 121310 125816 PMGF06_Entrustmentindd 25GF06_Entrustmentindd 25 51811 33157 PM51811 33157 PM

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 28: Government Fleet June 2011

26 Government Fleet June 2011

L I A B I L I T Y R I S K

these questions and help federal state

municipal and local government fl eet

managers understand what liabilities they

face resulting from the negligence of their

employees The basics of tort law are ex-

plained to provide government fl eet man-

agers an understanding as to how various

immunity laws differ within various gov-

ernment jurisdictions

WHAT IS TORT LAWBefore discussing liability for the gov-

ernment fl eet professional a basic back-

ground in tort law is helpful

A ldquotortrdquo is a civil wrong Westrsquos Encyclo-pedia of American Law defi nes ldquotort lawrdquo as ldquoa body of rights obligations and remedies

that is applied by courts in civil proceedings

to provide relief for persons who have suf-

fered harm from the acts of othersrdquo Negligence the most common tort has

the most risk for fl eet managers since neg-

ligence awards can be very large and fl eet

managers deal with a subject that is inher-

ently dangerous mdash the operation of a mo-

tor vehicle

Negligence is based on a duty of care

When one engages in any activity that per-

son is under a legal duty to act as an or-

dinary prudent reasonable person would

act It should be remembered that negli-

gence law is at its base a way to spread

risk fairly So it is logical that courts tend

to stretch the scope of negligence liability

to cover innocent injured parties when a

defendant is negligent

The applicable standard of care is the

reasonable person standard of ordinary

prudence under similar circumstances For

fl eet professionals it is judged as what the

reasonable prudent fl eet professional in the

fi eld of fl eet management would do under

similar circumstances

Generally for an organization to assume

negligence liability for the acts of the fl eet

or fl eet department the court must fi nd the

fl eet organizationrsquos behavior was not con-

sistent with the standards in the fl eet indus-

try As an example if a driver is involved in

a crash and the other party claims the driv-

er was not competent to operate the vehicle

and the organization was negligent in hir-

ing the driver the standard of care would

be whether the fl eet department (or other

responsible organization) properly checked

driver motor vehicle records had reason-

able safety programs had appropriate and

current driver policies and procedures etc

consistent with other similar fl eet organi-

zations in its geographic territory

The employer can be held liable for neg-

ligence either directly due to the employ-

errsquos negligence (eg negligent entrustment

negligent hiring negligent supervision

negligent training) or under the doctrine

of respondeat superior (vicarious liabil-

ity) The Restatement of the Law ndash Agency

Third in Section 204 defi nes respondeat

superior as follows ldquoAn employer is sub-

ject to liability for torts committed by em-

ployees while acting within the scope of

their employmentrdquo

The negligence or fault of the employer

is not an element of the respondeat superior

claim To this end if the employee has no

liability then the employer can have no vi-

carious liability

WHAT IS SOVEREIGN IMMUNITYThe doctrine of sovereign immunity has

its roots in English common law adopted at

the founding of the United States Sovereign

immunity in England was based on the doc-

trine of the ldquodivine right of kingsrdquo and that

the king ldquocould do no wrongrdquo As English

law evolved it became established that the

king could not be sued in his own courts

The federal government and new states

of the United States adopted the English

doctrine of sovereign immunity holding

To illustrate the potential liability facing government fl eet operations the following are some representative verdicts and settlements awarded to plaintiffs

1 Federal $450000 verdict US District Court Judge Thomas Penfi eld Jackson ruled in favor of a plaintiff who suffered back and knee injuries after his van was rear-ended by a US Postal Service truck Source wwwchaikinandshermancom

2 Federal $600000 verdict plaintiff was riding a motorcycle when a US Postal Service truck negligently pulled out from a stop sign in front of plaintiff who suf-fered major fractures and injuries Source wwwchaikinandshermancom

3 California $13820000 verdict Garcia v Los Angeles County Metropolitan Transportation Authority Joseph Garcia a 56-year-old unemployed passenger was traveling on an LACMTA bus that collided with a parked car Garcia suffered severe brain damage and hemiplegia of his left side He successfully argued that the LAC-MTA was negligent by inadequately training the bus driver (she failed to maintain the required minimal clearance from parked vehicles four times during training) Source wwwgreene-broilletcom (Greene Broillet amp Wheeler LLP)

4 California $7675000 verdict Tartakoff v City of Los Angeles A 41-year-old woman was paralyzed when the car she was driving was struck by a car traveling up to 100 miles an hour fl eeing from police She successfully alleged the police were negligent in chasing the suspect without lights or siren Source ldquoJury Awards Paraplegic $765 Million From Cityrdquo Jane Fritsch and Charisse Jones LA Times March 29 1990

5 Missouri $3 million jury verdict Alnita Smily 21 was awarded $3 million in her suit against the City of St Louis She successfully argued that a marked City truck negligently made a right turn on a red light causing her to swerve to avoid a collision and crash into parked cars The crash resulted in serious head injuries a severed ear and back injuries Source ldquoJury Orders St Louis to Pay $3 million Over Crashrdquo Valerie Schremp Hahn St Louis Post Dispatch November 12 2010

6 New York $16 million jury verdict plaintiff suffered injuries in auto accident caused by municipality failing to maintain safe road conditions (stop sign blocked by trees and shrubs) Source wwwfriedmanhirschencom

7 New Jersey $31295007 verdict Nicholas Anderson 18 was driving his car in Camden County when a driver going in the opposite direction into his lane caused him to swerve onto the shoulder which was six inches lower than the highway Unable to drive back he went out of control hitting the guardrail The guardrail penetrated his car and severed his left leg He suffered other signifi cant injuries At trial it was shown that the County knew of the dangerous conditions of the shoulder and guard-rail but pursuant to its policy of not fi xing safety conditions until there is an accident did nothing to correct the unsafe condition Source wwwfeldmanshepardcom

REPRESENTATIVE CASES

GF06_Entrustmentindd 26GF06_Entrustmentindd 26 51811 33159 PM51811 33159 PM

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 29: Government Fleet June 2011

GF06_Entrustmentindd 27GF06_Entrustmentindd 27 51811 33209 PM51811 33209 PM

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

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SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 30: Government Fleet June 2011

28 Government Fleet June 2011

L I A B I L I T Y R I S K

that the federal government or states are not

liable in tort without their express consent

The famous Judge Oliver Wendell Holmes

said in Kawananakoa v Polyblank (205

US 349 353 [1907]) ldquo[a] sovereign is ex-

empt from suit not because of any formal

conception or obsolete theory but on the

logical and practical ground that there can

be no legal right against the authority that

makes the law on which the right dependsrdquo

The doctrine of sovereign immunity

shielded governments in the US from tort

liability until relatively recently Gener-

ally the only way for a victim of govern-

ment negligence to be compensated was

for Congress or a state legislature to pass

an individual act compensating the victim

However beginning in the 20th century the

trend of tort law was to compensate the vic-

tims of tort liability by enterprise acts and

distribute their losses among the benefi cia-

ries of the enterprise This trend ran direct-

ly into the accepted doctrine of sovereign

immunity Persons suffering losses due to

the negligence of government employees

generally were left without a remedy

WHY IS THE FEDERAL TORT CLAIMS ACT IMPORTANT

In 1946 the federal government en-

acted the Federal Tort Claims Act (FTCA)

the most important piece of legislation af-

fecting government immunity Under the

FTCA the federal government can only

be sued ldquofor injury or loss of property or

personal injury or death caused by the neg-

ligent or wrongful act or omission of any

employee of the Government while acting

within the scope of his offi ce or employ-

ment under circumstances where the Unit-

ed States if a private person would be li-

able to the claimant in accordance with the

law of the place where the act of omission

occurredrdquo (28 USC Section 1346[b])

The FTCA did not do away with sover-

eign immunity rather it created a waiver

of sovereign immunity under specifi c cir-

cumstances The federal government un-

der the FTCA specifi cally consented to be

sued for negligence under the conditions

specifi ed in the Act

To bring a negligence case under the

FTCA the claimant must have been dam-

aged by the negligence or wrongful act of

a federal employee acting within the scope

of his or her employment in circumstances

where a private person would be liable un-

der the law of the state in which the negli-

gence or wrongful act occurred The US

Supreme Court has held that the FTCA is

to be liberally construed (Black v Neal 460 US 289 298 [1983])

The FTCA grants exclusive jurisdic-

tion to federal district courts and limits

remedies to monetary damages only (no

punitive or exemplary damages) All fed-

eral agencies and instrumentalities (such

as the post offi ce) are covered A key limi-

tation is that liability only attaches if the

federal employee was acting within the

scope of his or her employment when the

act occurred This does not mean whether

the employee had the authority to act only

whether he or she was carrying out the

business of the government A second key

limitation is that the government is liable

only if it would be liable under state law if

it were a private person

It should be noted that numerous proce-

dural rules apply to an FTCA claim

bull The claim must be fi led fi rst against

the agency involved within two years

of the negligent act

bull The agency has six months to accept

the claim or reject it

bull If the agency rejects the claim or does

not decide within such six-month pe-

riod the claimant may sue

bull All suits must be brought in federal

district court in the venue where the

plaintiff resides or the negligence oc-

curred

All suits under the FTCA are exclusive-

ly against the US and not the individual

employee or agency involved

In fact if the employee was acting with-

in the scope of employment the employee

cannot be individually sued or separately

sued in a civil action

Applying the FTCA to federal govern-

ment fl eet operations if a fl eet driver is

negligent while performing duties in the

scope of his or her employment the FTCA

waiver to sovereign immunity will apply

and the federal government will be subject

to suit for monetary damages And in gov-

ernment fl eet operations where large fl eets

of trucks and vehicles are operated the po-

tential liability for the federal government

is large For example two representative

cases noted in the sidebar [Representative

Cases on page 24] contain rulings against

the federal government In both cases the

US Postal Service was found negligent re-

sulting from the acts of the USPS drivers

Monetary damages ranged from $450000

to $600000

INDIVIDUAL STATE TORT CLAIMS ACTS

The picture is not as clear under state

law Most states have adopted individual

state tort claims acts many patterned

after the FTCA However the majority

limit recovery under the individual state

tort claims act The National Conference

of State Legislatures (NCSL) compiled a

comprehensive list of all state tort claims

acts (see wwwncslorg) According to the

NCSL at least 33 states limit or cap recov-

ery under their respective state tort claim

acts The balance of the states and the Dis-

trict of Columbia following the FTCA do

not limit or cap recovery

Some states cap recovery as low as

$100000 Florida for instance capped

recovery at $100000 for individual

and $200000 for claims until October

2011 when the caps will be increased

to $200000 and $300000 Illinois and

Massachusetts for example cap recovery

at $100000 except for negligence involv-

ing motor vehicles which are not capped

To understand what liabilities state gov-

copyIS

TOC

KPH

OTO

CO

MF

RA

NC

ES T

WIT

TY

Between $450000 and $31 million in settle-ments are detailed on page 24 illustrating the liability facing government fl eet operations due to accidents and alleged negligence

GF06_Entrustmentindd 28GF06_Entrustmentindd 28 51811 33209 PM51811 33209 PM

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 31: Government Fleet June 2011

Government Fleet June 2011 29

Call 8003586178[VKH`HUKZWLHR^P[OH4(9ltJLY[PAumlLKZWLJPHSPZ[HUKreference code GF611 for our special offer For more information about how we can maximize your revenue visit our Web site at wwwdiscretewirelesscom

Discrete Wireless connects GPS fleet management

to business results Customers realize ROI

within as little as two months of their MARCUSreg

purchase In fact one customer reports a 9

increase in service revenue while payroll expenses

decreased by 10 Rapid ROI Proven Results

ldquoI consider Discrete Wireless my GPS expertrdquo

With the Discrete Wireless MARCUS system you can

Validate time spent on the job

Reduce fuel cost and insurance premiums by 10

Increase driver productivity by 20

Frank Steinocher Shumate Mechanical

ernment fl eet operators face fl eet pro-

fessionals must understand the specifi c

waivers to sovereign immunity adopted

in their states

As with the FTCA the individual state

tort claims acts have varying administra-

tive procedures that must be followed in

order to assert a claim It is imperative that

the claimant and the potential defendant

(public fl eet organization) understand the

specifi c procedures in their state

Municipal and local government liabil-

ity for negligence of their employees gener-

ally follows the law of the state in which

the local entity is located

By way of illustration a number of state

and local government cases are provided

in the sidebar (page 25) Two cases against

the State of California in particular refl ect

the signifi cance of potential fl eet-related

verdicts decided in favor of the plaintiff In

one case the judge found the Los Angeles

County Metropolitan Transportation Au-

thority negligent for failing to adequately

train a bus driver damages amounted to

almost $14 million A second case against

the City of Los Angeles also decided by a

judge levied $77 million against the City

for negligence involving a police offi cer

vehicle chase Not to be outdone by Cali-

fornia the City of St Louis was recently

found negligent in a jury verdict award of

$3 million after a City driver negligently

made a right turn on a red light causing

the plaintiff to crash into parked cars Fi-

nally although not caused by the negli-

gence of the fl eet vehicle driver or even the

fl eet organization the State of New Jersey

was found negligent for damages exceed-

ing a whopping $31 million as a result of

adopting a policy to not repair a knowingly

dangerous condition until an accident oc-

curred All of these cases are evidence of

the potential cost of damage awards even

though punitive awards are not permitted

For more details see sidebar ldquoRepresenta-

tive Casesrdquo

WHAT DOES THIS ALL MEANWhile individual government employ-

ees or agencies may not be held respon-

sible for their own acts or the acts of their

employees it is still expected that the fl eet

organization and its drivers practice the

applicable standard of care that is rea-

sonable for the circumstances in play In

essence it is practical to expect that in-

nocent injured parties will seek damages

(and often be successful) against a negli-

gent defendant even if that defendant is

a government entity Consequently the

fl eet manager should be responsible for

exercising due care to protect the govern-

mental entity and its tax-paying constitu-

ents against large avoidable negligence

damage awards and the resulting negative

publicity Government fl eet managers

therefore should understand the doctrine

of sovereign immunity the FTCA and in-

dividual state tort claims acts as appropri-

ate for their governing jurisdiction

ABOUT THE AUTHORJanis Christensen CAFM is director of Corporate Fleet Consulting Services at Mercury Associates Inc She can be reached at jchristensenmercury-assoccom

GF06_Entrustmentindd 29GF06_Entrustmentindd 29 51811 33216 PM51811 33216 PM

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 32: Government Fleet June 2011

30 Government Fleet June 2011

Cost-effi cient green sustainable and

earth-friendly mdash do any of those

words describe your fl eet Fleet

managers are swimming in a sea of change

with the very core technologies of the in-

dustry changing rapidly Internal combus-

tion engines are still a mainstay of fl eet but

to some degree are being replaced by vary-

ing types of powertrains that utilize fewer

different or ldquoless-scarcerdquo resources

Among the many reasons to conserve

fi nite resources is cost particularly due

to ever-tightening budget constraints

Other reasons include protecting the

planet from harmful emissions using

local resources that also promote local

economies and reducing dependence

on products when availability is fi nite

or threatened The recent confl ict in the

Middle East underscores the importance

of becoming more energy independent

Some business and government enti-

ties have stepped up their planetary stew-

ardship and conservation because they

view it as the right thing to do Why use

up all of one resource if there is a limited

supply available

The health benefi ts of some of the

emerging transportation alternatives are

attractive as well Walking and biking al-

though not always feasible as components

for business travel provide obvious bene-

fi ts for the health and well-being of citizens

and employees Employers may also look

at how employees travel to and from work

incorporating that into the scope of a fl eetrsquos

environmental policies Healthier and hap-

pier employees can contribute to produc-

tivity and the all-important bottom line

For purposes of this article ldquogreenrdquo

is defi ned as conserving fi nite resources

economical or free No-costlow-cost

can mean a ldquogreenrdquo project has no initial

cost or that the initial outlay is easily re-

couped by the return on investment

AVOID UNNECESSARY TRAVELPolicies may be one of the best examples

of low- or no-cost methods if they do not re-

quire funding to implement If fl eet imple-

ments a policy to reduce trips to ldquoPoint Ardquo

from three times per week to twice weekly

there is no investment cost As another ex-

ample if $300 is invested per vehicle to in-

stall GPS devices resulting in a $350 fuel

savings due to reduced speeds more effi -

cient routing and lower overall miles that

would be considered low cost as well

The fi rst steps in fl eet effi ciency and

greening go hand-in-hand eliminating or

reducing unnecessary travel miles Letrsquos

call that ldquotravel avoidancerdquo This is not to

say there is anything wrong with travel

mdash in fact it is the heart of our business

However if you can reduce the number

of miles employees must travel in positive

A variety of easy approaches can yield quantifi able results in greening a fl eet including avoiding unnecessary travel and using alternative-fuel vehicles Tactics used by the states of West Virginia and Oklahoma are shared including leveraging existing state natural resources

BY BARBARA BONANSINGA

copyIS

TOC

KPH

OTO

CO

MD

IMIT

RIS

66

The States of West Virginia and Oklahoma are presented as examples for low- and no-cost ways to green a fl eet Suggestions include bull Pilot programs before making large-scale

changes bull Match alternative-fuel use to the fl eet bull Leverage state natural resources bull Integrate sustainability efforts with strategic objectives

AT A GLANCE

GREEN FLEET STRATEGIES

LOW-COSTLOW-COSTNO-COSTNO-COST

OR

GF06_Strategiesindd 30GF06_Strategiesindd 30 51811 33248 PM51811 33248 PM

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

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INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 33: Government Fleet June 2011

Government Fleet June 2011 31

ways travel costs decrease as do the fuel

consumption and emissions produced

Perhaps eliminating travel isnrsquot feasible

but reducing the miles traveled is Finally

when wersquove cut non-essential travel and

reduced miles traveled with various types

of effi ciencies the focus can shift to using

the most effi cient means available for the

travel miles that remain In seeking these

types of effi ciencies fl eets become green

Fleet professionals strive to get the

most out of every dollar available for

their budgets fuel being a primary com-

ponent They are generally engaged in

looking for ways to use less or make a

gallon of fuel go farther

Under travel avoidance consider using

communications technology in lieu of travel

to get the job done Could you use the Web

and e-mail the information What about a

webinar mdash would it give you the access and

communications capability to perform the

work without the travel Corporations and

government fl eets are searching for means

to expand use of electronic media such as

video and telephone conferencing to meet

communicate and complete work that oth-

erwise would have required travel for face-

to-face meetings The menu options for

electronic media are rapidly expanding

Electronic communication via social

or business networking sites such as Fa-

cebook Twitter and LinkedIn are being

incorporated into many businesses as

well Fleet managers are fi nding ways to

reach out to the global community to gain

information from a much larger group of

experts via the Web

USE OF ALT-FUEL VEHICLESLearning the options available for fl eet

managers striving to be greener can be

daunting Options abound as the industry

creatively and competitively searches out

newer and better green travel methodolo-

gies at a fast pace

Gas- and diesel-powered engines join

a myriad of alternative- and fl ex-fueled

vehicles including but not limited to

those capable of running on ethanol

biodiesel natural gas propane autogas a

variety of hybrids and pure electric mo-

tors engines and powertrains Entirely

new infrastructures must be planned

developed and implemented to support

some of these technologies

Which way the market will turn and

which technologies will prevail remains a

question It is likely multiple technologies

will be tried and possibly used as step-

ping stones to what will become longer-

term solutions This leaves fl eet managers

faced with remaining vigilant and poised

for change in a number of directions and

in many cases with limited resources to

embrace these new technologies

WEST VIRGINIA GOES lsquoGREENrsquoClay Chandler fl eet manager for the

State of West Virginia is forward think-

ing and has translated green fl eet concepts

into actions with measurable results The

State operates an approximately 9000 ve-

hicle state-owned or leased fl eet

One of the items propelling the Statersquos

green initiatives is the Energy Policy Act

(EPAct) which requires reduced carbon

footprints and mitigation of potential

health hazards (Clean Air Act)

The West Virginia fl eet is actively en-

gaged in seeking methods to reduce miles

traveled ldquoWe employ webinars and tele-

phone conferencing Whenever virtual

approaches are not practical we encour-

age regional meetings to minimize miles

traveledrdquo Chandler said He also noted the

State fl eet is preparing a solicitation for

value-added technology which are based

on the successful results achieved during

his tenure with the State of Oklahoma

For the travel miles that canrsquot be elimi-

nated Chandler said the West Virginia ap-

proach to boosting environmental or green

effi ciency includes ldquoincorporating value-

added technology controlled authoriza-

tions for special purpose vehicles (SUV

4WD etc) CAFE compliance etcrdquo

Some examples of these strategies in

practice include formally adopted weight-

ed vehicle selection criteria Specifi cs are

outlined below

bull The Dept of Administration (DOA)

replacement methodology will evalu-

ate each vehicle as defi ned by selec-

tion criteria using assigned weighting

factors

bull The model selection criteria will in-

clude vehicle life-to-date maintenance

expenditures age accrued mileage

projected fl eet revenues and expen-

ditures mission analysis potential

vehicle downsizing availability on

the statewide automobile contract

alternative-fuel vehicle replacement

targets and statefederal statute and

or regulatory requirements

bull Minimum selection criteria were clear-

ly defi ned for each fi scal year Four

years100000 miles is the standard for

sedan age Fleet also established a stan-

dard for maintenance of expenditures

greater than 50 percent of depreciated

value according to Chandler

ldquoVehicle weightcategory will be as-

sessed and whenever possible a smaller

more fuel-effi cient variant will be select-

ed that delivers comparable horsepower

operating range ground clearance and

towing capabilityrdquo he said ldquoManufactur-

er make and model preferences will be

limited to availability using the existing

statewide automobile contract Vehicle

replacement will not be deferred based

solely on leasing-agency preference and

must demonstrate a cost savingsrdquo

EPAct requires a vehicle replacement

rate of 75 percent with alternative-fuel ve-

hicles Alternative fuel is currently defi ned

as ethanol (E-85) compressed natural gas

(CNG) biodiesel (B-20) liquid petroleum

gas (LPG) and electricity (EVPHEV)

In West Virginiarsquos fl eet the following

priorities will be used to leverage exist-

ing State natural resources and provide

concurrent savings in fuel expenditures

or reduce environmental emissions

bull Priority 1 Original equipment man-

ufacturer (OEM) alternative-fuel ca-

pable vehicles

bull Priority 2 OEM vehicle where an

existing EPA Certifi cate of Confor-

mity exists or a small volume manu-

facturer (SVM) waiver is pending for

aftermarket alternative-fuel conver-

sion Within this priority bi-fuel con-

version technology will be favored

over dedicated alternative-fuel tech-

nology until and unless a minimum

fuel range of 350 highway miles can

be achieved using dedicated after-

market conversion then considered

equally for use

bull Priority 3 OEM hybrid electric

vehicle mdash only vehicles that meet

National Highway Traffi c Safety Ad-

ministration (NHTSA) Department

of Transportation (DOT) Corporate

Average CAFE criteria purchasing

GF06_Strategiesindd 31GF06_Strategiesindd 31 51811 33249 PM51811 33249 PM

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

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GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 34: Government Fleet June 2011

32 Government Fleet June 2011

A L T E R N A T I V E - F U E L S T R A T E G I E S

vehicles meeting CAFE standards for

passenger cars and light trucks

The West Virginia fl eet has other low-

costno-cost green fl eet concepts in the

planning and implementation stages as

well some of which address fuel price

spikes According to Chandler ldquoFleet is

establishing a formal methodology that

can be pre-approved by statersquos political

leadership published and executed by

state agencies using a phased approach

based on fuel pricesrdquo

The following steps would likely be

taken to offset any unforeseen increases

in fuel prices

bull Execute an immediate moratorium

on commuting in state-owned or

leased vehicles

bull Reassign vehicles from individual

driver assignment to shared-use as-

signment

bull Park older less fuel-effi cient vehicles

and use newer smaller vehicles

bull Institute increased driver supervision

and use of route optimization tech-

nology to reduce miles driven

bull Reduce idling (one hour of idling

equals 33 miles driven)

bull Embrace value-added technology to

improve driver behavior and reduce

miles driven (telematics)

bull Develop operational plans that are

based on fuel prices

West Virginia fl eet is incorporating

quantifi able results-based actions into its

green fl eet programs Among the benefi ts

expected for the state derived to date that

Chandler points to include cost savings

health benefi ts miles reduced emissions

reduced and vehicles eliminated

Examples of cost savings gained in

other states such as Oklahoma include a

decrease from fi rst-year return-on-invest-

ment for the use of telematics of 101 days

to 44 days in its second year Diagnostic

fault code capability was added to ve-

hicles to provide information to preemp-

tively address vehicle issues

The Oklahoma State fl eet invested in

telematics for 1100 vehicles and quickly

identifi ed a signifi cant drop in fl eet mile-

age from 15 million to 144 million miles

despite the addition of more than 200 ve-

hicles The Statersquos resultant fuel cost re-

ductions from $187 million in fi scal year

2008 to $125 million in fi scal year 2010

were a major victory Chandler said fuel

cost savings were realized despite the up-

ward trending of the price of fuel per gal-

lon during this period

According to Chandler maintenance

costs decreased along with use and fuel

consumption and an annual reduction of

$77 dollars per vehicle was realized

Another benefi t of telematics use in

the Oklahoma fl eet included reduced ac-

cidents Further Chandler feels the use of

preventive maintenance (PM) alerts keep

fl eet in better shape at a lower cost Fleet

experts point out comprehensive PM can

reduce vehicle operating costs as much

as 4 cents per gallon Knowing when it is

time for an inspection and following up

with reminders to drivers impact PM in-

spection compliance rates

Driver behavior can be signifi cantly

impacted when the concept of telematics

is introduced into fl eets Drivers tend to

reduce speeds be more vigilant of traffi c

laws and reduce extraneous miles Chan-

dler also added that one of the reasons for

the success of telematics is Oklahomarsquos

approach to it has been non-punitive He

considered buy-in at all levels of an or-

ganization key to its success particularly

buy-in among drivers

State government fl eets generally repre-

sent a signifi cant portion of an entityrsquos over-

all energy consumption thus fl eets have

been put in the forefront of efforts to en-

hance ldquoplanetary citizenshiprdquo as Chandler

described it Chandler considers knowledge

sharing an all-important component to suc-

cessfully establishing and maintaining a

green fl eet He considers it their mission

to share knowledge and experience about

fl eetsrsquo impact on the environment with the

taxpaying public for transparency

In support of knowledge sharing relat-

ing to the fl eetrsquos sustainable fl eet strategy

Oklahoma provides citizens information

that includes responses to such questions

as ldquoHave you ever wondered what im-

pact the statersquos vehicle fl eet has on the

environmentrdquo

Chandler explained ldquoFleet manage-

mentrsquos role in state sustainability initiatives

is often critical to achieving program goals

in cutting energy consumption reducing

greenhouse gas emissions and supporting

good lsquoplanetary citizenshiprsquo rdquo Assuming

each vehicle drives at the speed limit and

logs 18000 miles annually

bull Each compact car emits 531 tons

(10620 lbscarbon dioxide annually)

bull Each mid-sized car emits 99 tons

(19800 lbscarbon dioxide annually)

bull Each SUV or pickup emits 1443 tons

(28860 lbscarbon dioxide annually)

The total effect on the environment

based on a 9000 state-owned or leased ve-

hicle fl eet 87066 tons or 174132000 lbs

of carbon dioxide (CO2) emitted annually

Even during budget-constrained

bottom-line-wary times each state must

continue to pursue green fl eet measures

especially those that can have an immediate

impact on agenciesrsquo budgets

Chandler considers the State of West

Virginia to be fuel-neutral in its support

of green vehicles and technologies

ldquoFueled by federal regulation (CAFE)

the Statersquos strategic procurement process-

es include whenever available the inte-

gration of alternative-fuel vehicle engine

options across the statewide automobile

contract categoriesrdquo

Chandler believes the approach pro-

vides latitude to user agencies to help for-

mulate their fl eet energy mix ldquoFor those

agencies that prefer hybrid or ethanol tech-

nology the state continues to award OEM

E-85 and hybrid fuel types whenever pos-

sible As a result the State has banked

EPAct credits that can be used to ensure

future regulatory requirements are metrdquo

ldquoFleet managementrsquos role in State sustainability initiatives is often critical to achieving program goals in cutting energy consumption reducing greenhouse gas emissions and supporting good lsquoplanetary citizenshiprsquo ldquo

mdash CLAY CHANDLER FLEET MANAGER WEST VIRGINIA

GF06_Strategiesindd 32GF06_Strategiesindd 32 51811 33249 PM51811 33249 PM

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 35: Government Fleet June 2011

Government Fleet June 2011 33

GF0511rmfmaindd 1 41411 44242 PM

Concluding Chandler offered some

words of advice for other fl eets embark-

ing on the development or continuation of

no-costlow-cost green fl eet strategies

1 Learn before you leap Pilot pro-

grams using a small number of vehicles

can validate agency assumptions about

which technologies best support the

agencyrsquos mission and budget

2 Match the fuel to the fl eet States

often require fl eets with multiple vehicle

fuel types and even combinations of fuel

types ldquoWe believe there are multiple

technologies with abundant domestic fuel

supplies that can reduce operating costs

and environmental impact over time

while the State continues its efforts to es-

tablish the infrastructure needed to sus-

tain increasing numbers of alternative-

fuel vehiclesrdquo Chandler said

From pilot program experiences in

other states CNG and hybrid-electric

vehicles appear to work for urban-based

agency applications particularly since the

technology infrastructure is more readily

accessible in major metropolitan areas

Some states are also exploring dual-fuel

vehicle categories for agencies that sup-

port more geographically dispersed citi-

zenry Current dual-fuel vehicles include

ethanolCNG with future LPGCNG

combinations possible Dual-fuel capabil-

ity may have an added benefi t of relieving

employee anxiety during statewide infra-

structure development

3 Leverage state natural resources To leverage existing state natural resources

provide a concurrent savings in fuel expen-

ditures and reduce environmental emis-

sions agencies should consider prioritizing

their fl eet sustainability efforts by formal-

izing their replacement methodology

4 Integrate sustainability efforts with strategic objectives Successful change

agents are those that embrace change but

do not subscribe to a ldquoready shoot aimrdquo

methodology Successful organizations ex-

ecute a formalized change control process

that ensures deliberate and thoughtful con-

sideration of concepts technologies pro-

cesses or products and ties them to existing

long-term strategic objectivesrdquo

Chandler stated ldquoOnce you have con-

sensus by those stakeholders stick to

the planrdquo He continued one of the most

common reasons any fl eet initiatives fail

is because they are expanded beyond their

original scope green fl eet initiatives are

no exception

Chandler recommended to avoid de-

lays and cost overruns and stay consistent

with the original scope of an initiative

upon which the consensus for direction

was established

Based on overall results to date and

statistics on ROI in states such as Okla-

homa it would appear that West Vir-

ginia fl eet is poised for successful im-

plementation of low-costno-cost green

fl eet initiatives

ABOUT THE AUTHORBarbara Bonansinga has worked in fleet management with the State of Illinois for more than 25 years She can be reached at bbonansingasbcglobalnet

GF06_Strategiesindd 33GF06_Strategiesindd 33 51811 33249 PM51811 33249 PM

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 36: Government Fleet June 2011

34 Government Fleet June 2011

GF05-20fcs_fpindd 1 51811 32202 PM

The yearned-for toys of yesteryear

accumulate in many homes played

with the day they are received

maybe longer but eventually abandoned

and then forgotten Information technology

and software programs can meet much the

same fate They are acquired implement-

ed users learn what they need to know to

do their jobs mdash and thatrsquos it As time goes

by users become less and less inclined to

ldquoplayrdquo with it and learn what more it can

do So an organization such as a govern-

ment fl eet that isnrsquot maximizing the sys-

tem only realizes a fraction of the benefi ts

For the City of Seattle fl eet managers

realized they could do more with the in-

formation technology (IT) they had and

by doing so reap operational and money-

saving benefi ts

ENSURING PROPER USE OF TECHNOLOGY

The City of Seattlersquos fl eet team which

includes Nanci Lien fl eet administration

manager for Seattle and Dave Seavey fl eet

services director contacted the Cityrsquos IT

vendor for help re-integrating and maxi-

mizing the system already in place This

involved assistance with correcting bad

habits that had developed reinforcing good

habits and generally instilling a stricter

adherence to protocol so the system would

yield more of the expected benefi ts

The City fl eet is comprised of 4000

pieces of equipment between 3000-4000

of which are used by City employees This

year it is acquiring 26 Nissan LEAF electric

vehicles and creating a recharging infrastruc-

ture for them with $15 million it received in

federal stimulus money Lien reported

According to Lien she told AssetWorks

the Cityrsquos IT vendor they didnrsquot need any

new ldquotoysrdquo and already had ldquoa lot of toys

we havenrsquot been playing withrdquo

The re-tooling effort began in late 2009

ldquoOur theme was lsquodata mattersrsquo rdquo said Lien

In reviewing its use of AssetWorksrsquo sys-

tem FleetFocus ldquoWe found our data was

not as clean as it could berdquo

The FleetFocus system tracks vehicle

and equipment maintenance including

processing repair and preventive mainte-

nance work orders capturing operating

expenses (eg fuel oil and licensing)

and offers billing and tracking for vehicle

equipment usage

By maximizing the use of its information technology system the City of Seattle was able tobull Generate better quality databull Monitor vehicle and fuel use more

accuratelybull Identify underutilized equipment and

remove or re-assign as needed

AT A GLANCE

Todayrsquos technology can provide a number of advantages but only when used as intended and to maximum potential By identifying how to fully utilize its information technology system

the City of Seattle was able to increase effi ciency in its operations and achieve savings

BY STEPHEN BENNETT

SEATTLE MAXIMIZES TECHNOLOGY TO IMPROVE OPERATIONS

The City of Seattle retrained employees on the existing technology systems to ensure the resources were being used to their full potential

GF06_Seattleindd 34GF06_Seattleindd 34 51811 33411 PM51811 33411 PM

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 37: Government Fleet June 2011

Gain SomePerspective

Your Fleet Consulting Experts

Fleet Consulting Fleet Sof tware Fleet Management Services

Take a Fresh Look at Your Fleet OperationAt Fleet Counselor Services we have spent more than 20 years developing the expertise analytics and software you need to optimize your eet operationWersquore on your side

To learn more call (800) 824-0842 or visit www eetcounselorcom today

Fleet Counselor Services is an o cial partner of Government Fleet magazine

GF05-2011

GF05-20fcs_fpindd 1 51811 32202 PM

GF06_Seattleindd 35GF06_Seattleindd 35 51811 33416 PM51811 33416 PM

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 38: Government Fleet June 2011

36 Government Fleet June 2011

T E C H N O L O G Y

Training or more accurately re-training in the best use of the IT system

was needed so that ldquogood clean datardquo

could be generated Lien explained

For example she said the City of Seattle

operates more than 30 fuel sites altogether

with three accounting for some 60 percent

of fuel used

Seavey and Lien concluded that many

of the Cityrsquos fl eet vehicle operators needed

to be retrained in the protocol for using the

fueling system so that good-quality data

would be generated At the pump the sys-

tem requires operators to enter critical in-

formation such as their employee number

the equipment number for the vehicle being

refueled and the mileage However not all

employees performed this task properly

After the retraining sessions Lien and

Seavey monitored driver performance

Exception reports fl agged discrepancies

between odometer readings entered by

employees and actual odometer readings

The re-training sessions had emphasized

that entering accurate odometer readings

was critical as it helped determine when

vehicles would be serviced and inspected

Employees whose names popped up on

exception reports mdash meaning their odom-

eter entries turned out to be inaccurate mdash

were reminded in conferences of what was

expected But some employees had recur-

ring problems ldquoEventually we restricted

them from using the systemrdquo Lien said

ldquoThey were not able to fuelrdquo

Part of the monitoring by the system is

based on a ldquovehicle profi lerdquo including the

type of fuel a vehicle uses (gasoline or die-

sel) and the maximum number of gallons

the fuel tank can hold ldquoNozzle-sharingrdquo mdash

refueling a vehicle and then just passing the

nozzle on to the next vehicle operator mdash

was a no-no but had obviously occurred

Lien recalled one case in which 680 gallons

was ldquodispensedrdquo to a single Crown Victoria

patrol car in the course of two days Such

episodes tended to occur out of impatience

or disdain for the proper procedures which

she said were viewed as time-consuming

and tedious rather than with an under-

standing of how they could support timely

cost-effective maintenance of vehicles

HOLDING EMPLOYEES MORE ACCOUNTABLE

Installing radio-compatible rings

around vehicle fi ll pipes was the curative

for nozzle-sharing The rings working

with antennas installed at some of the fu-

eling sites link the vehicle being refueled

with the ID card an employee must swipe

before starting the fueling process The

rings are installed on new vehicles added

to the fl eet

Besides the Cityrsquos own fueling sites

employees are permitted to visit a dozen

retail stations where the City has accounts

The transactions at these stations were

managed on paper The stations kept forms

on clipboards where City employees were

required to write their employee number

vehicle number etc The onerous monthly

paperwork generated by this practice com-

pounded by occasional cases of illegibility

or inaccuracy was eliminated with the in-

troduction of fuel cards issued to employ-

ees This had the added benefi t of greater

accountability Lien emphasized that issu-

ing the cards to employees worked far bet-

ter than for example linking each card to

a particular vehicle

ldquoA car canrsquot talk if we have a questionrdquo

she explained

Employees who received cards were in-

structed not to lend them to other employ-

ees and were told they would be held re-

sponsible ldquoWe have cancelled cardsrdquo Lien

said ldquoItrsquos about behavioral changerdquo

Itrsquos also about fl eet size As part of the

overall re-tooling effort the City retained

a consultant to conduct a utilization study

which led to the shedding of some under-

utilized vehicles and the re-assignment of

other units to the motor pool For example

one department was assigned a vehicle that

was only driven 7000 miles in one year

ldquoDo you really need itrdquo Lien asked ldquoOr

can you use a motor pool vehiclerdquo

Such scrutiny resulted in 170 vehicles

being moved out of the ldquodepartment-

assignedrdquo category in 2009 Lien said An

option is to move all or some of them to

the motor pool where they may be used

more effi ciently effectively and widely

Lien said

The motor pool is governed by a

ldquokey valetrdquo program that is part of the

FleetFocus system Employees make

vehicle reservations online

Maintenance and the parts department

came in for a tune-up too This involved en-

suring the FleetFocus system for these activ-

ities was being used as intended For exam-

ple work orders in the program are linked

to parts inventory so that as parts are used

replenishment orders can be generated

ldquoOur ultimate goal is to create a dash-

board of fi ve to 10 pieces of informationrdquo

Lien said This would include the number

of vehicles in the fl eet the amount of fuel

used and mileage on an ongoing basis

One-hundred seventy under-utilized vehicles were moved out of the ldquodepartment-assignedrdquo category as part of an overall re-tooling effort

Work orders in the FleetFocus system are linked to parts inventory As parts are used replenishment orders can be generated

At the pump the system requires operators to enter employee number vehicle equipment number for unit being refueled and mileage

GF06_Seattleindd 36GF06_Seattleindd 36 51811 33417 PM51811 33417 PM

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 39: Government Fleet June 2011

Government Fleet June 2011 37

PROTECT YOUR FLEETPROTECT YOUR FLEETPrevent an audit of your fl eet operations with the Public Fleet Audit ndash A Self Assessment Checklist

This comprehensive guide contains

information on how to

- prevent auditing

- standardize your administrative and maintenance tasks

- increase effi ciency and workfl ow processes

- build and improve written and maintenance tasks

- gain analytical skills to evaluate other fl eet operations

- increase accountability

Buy today and receive free

updates and changes via e-mail

Keep your fl eet operations secure today

Learn more at wwwgfl eetcomaudit

presents

INVERS Mobility Solutions bull 6047421145 bull 8663080091

FF0909inversindd 1 9909 21000 PM

Generally speaking Lien said munici-

pal governments do a good job researching

software and in the initial training on how

to use it but then ldquo30 60 90 or 100 days

after installationrdquo there is often a fall-off in

ldquoafter carerdquo She likened the scenario to that

of a consumer who purchases a personal

computer and learns to use a fraction of the

word processing and accounting programs

REALIZING FINANCIAL BENEFITSIn regard to the return on investment for

all of the re-training and tweaking much

of which took place in 2010 and is ongoing

Lien said ldquoThe ROI is being able to do the

same or more with less of a workforcerdquo

Like many municipal fl eets Seattle

had to deal with budget cuts including the

elimination of between 15-20 ldquofull-time

equivalentsrdquo Lien noted

Going forward using the FleetFocus

system effectively provides the fl eet man-

agers with high-quality data mdash the num-

bers they need to generate reports to make

their case to the City administration for

what they need

Seavey said ldquoMy view is that there is

not as much emphasis on business man-

agement as there should berdquo in government

fl eet departments generally

ldquoWe exist for vehicle maintenancerdquo

Seavey said but without business manage-

ment practices mdash close attention to the led-

ger mdash ldquoextremely high costsrdquo can result

ldquoBased on the decisions they make su-

pervisors and crew chiefs on the fl oor have

a huge impact on how the budget is spentrdquo

Seavey said

ldquoThis is not in any way meant to be a

knockrdquo Seavey said ldquobut in fl eet main-

tenance a lot of managers used to be me-

chanics or in the maintenance fi eld They

were really good at their work and they

were promotedrdquo However deserved such

promotions are they should be accompa-

nied with training in budget management

Seavey said He Lien and Ken Bailey ve-

hicle maintenance director made a point

of teaching those principles as part of their

campaign over the past year and more and

aim to continue doing so Seavey said

SOURCESbull Nanci Lien fleet administration manager City of Seattle

E-mail nancilienseattlegovbull Dave Seavey fleet services director City of Seattle

E-mail daveseaveyseattlegov

GF06_Seattleindd 37GF06_Seattleindd 37 51811 33422 PM51811 33422 PM

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

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e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

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OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

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Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

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GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
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  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
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Page 40: Government Fleet June 2011

38 Government Fleet June 2011

When fl eets remarket vehicles

they earn precious dollars that

can help offset the cost of pur-

chasing new units The same is true for

off-road equipment By opting to remarket

used ldquoyellow metalrdquo over disposal fl eet

managers can see higher resale value than

they might expect Remarketing off-road

equipment relies on tried-and-true remar-

keting techniques but also calls for a few

of its own best practices

Five fl eet managers for city county

and state fl eets shared their own prac-

tices and offered advice for maximizing

resale value

CHOOSE THE RIGHT TIME TO REMARKET

First things fi rst Finding the right time

to part with off-road equipment is an im-

portant part of launching the remarketing

process Gary Lykins fl eet manager for the

Town of Jonesborough Tenn explained

that the urge to keep a depreciated unit

around for parts can be tempting mdash and

pressure to keep it around for a spare can

be overwhelming However Lykins said

a well-planned replacement schedule is a

fl eet managerrsquos best bet

ldquoRemarketing keeps the river of yel-

low metal fl owing through the econo-

myrdquo Lykins said ldquoWhen an organiza-

tion purchases a piece of equipment the

clock is running rather many clocks are

running The asset is depreciating the

technology is getting better on the newer

models and the productivity lsquoup-timersquo

is declining on the asset you own The

accepted optimum replacement schedule

is at the mark when depreciation and re-

pair costs intersectrdquo

Lykins suggested fl eet managers set a

replacement schedule then stick to their

guns Finding the right time to remarket

can make the best use of equipment mdash and

the publicrsquos dollars

DETERMINE THE RIGHT PRICEOnce yoursquove made the decision to re-

market off-road equipment itrsquos a good idea

to estimate the value yoursquod like to get out of

it This will help determine the appropriate

avenue for remarketing the unit as well as

set expectations for the value yoursquoll get

Allen Mitchell CPFP fl eet manager

for Snohomish County Wash researches

equipment values online and locally be-

fore attempting to remarket his equip-

ment ldquoWe determine values through

online resources and monitor bidding

online to ensure we are getting the values

BEST PRACTICESBEST IN REMARK E

Remarketing can yield major resale dollars for ldquoyellow metalrdquo and other off-road equipment Five fl eet experts weigh in on some of the best ways to maximize resale value for off-road equipment

BY SHELLEY MIKA

Several fl eet experts offer pointers to maximizing the resale value of off-road equipment includingbull Setting a well-planned replacement

schedulebull Researching and comparing values online

and locally before sellingbull Spending a few hours making the

equipment presentablebull Taking advantage of online auctions and

utilizing photos and videobull Considering the buyer standpoint when

describing the condition of the asset

AT A GLANCE

GF06_Off-Roadindd 38GF06_Off-Roadindd 38 51811 33507 PM51811 33507 PM

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

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Other Bobit Business Media Automotive Magazines

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GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 41: Government Fleet June 2011

Government Fleet June 2011 39

we think are appropriate If we arenrsquot able

to obtain a current value wersquoll call some

local dealers or our auction vendors for

an estimaterdquo he said

INVEST A LITTLE BUT NOT TOO MUCH

Part of what makes an asset attractive

for sale is presentation which relies on the

work put into making the piece presentable

before it goes up for sale

In preparing equipment for resale

Lykins suggested putting in a little effort

beforehand mdash but not so much that you re-

duce the overall value of the sale

ldquoDonrsquot go overboardrdquo he said ldquoThe

reason you are getting rid of the asset is

because the cost of keeping it up has out-

weighed the benefi t of having it around

Chances are you have spent way too

much on the asset already Just simply

budget a couple hours of shop time to

fi x some of the little things and give it a

good cleaningrdquo

JD Schulte fl eet manager City of Mo-

line Ill relies on in-house resources to

prep off-road equipment for resale ldquoWe

take the time to lsquosprucersquo it uprdquo he said

ldquoWe use light-duty [equipment] employ-

ees from other departments when they are

available to clean and detail our vehicles

and equipment With the City of Moline

having nearly 400 full-time employees

there is a good chance that someone is on

a light-duty return-to-work status that can

help us with detailingrdquo

To make assets ready for sale Curt

Cole business manager maintenance

and operations for the Delaware Depart-

ment of Transportation (DOT) launched a

ldquostartup dayrdquo with mechanics on hand to

help get equipment running ldquoThe startup

day helped quite a bit people could see the

equipment was running and we corrected

minor problems We also pre-inspect our

equipment to ensure that any damage or

theft of items (batteries tires etc) can be

correctedrdquo he said

FIND THE RIGHT AUCTION SERVICE

Once equipment is ready for resale

fi nding the right outlet for the sale is a criti-

cal choice For live auctions itrsquos important

to make sure it fi ts your equipment and

pricing needs

ldquoSome auction services have no mini-

mum bid One needs to be selective and

purposeful in using that type of resource

otherwise some equipment can be sold for

too little valuerdquo said Mitchell of Snohom-

ish County

Mitchell suggested tailoring the auction

service to the equipment being sold ldquoDonrsquot

assume one size fi ts all mdash different equip-

ment may require a different marketing ap-

proach or researching the right customersrdquo

he said ldquoI fi nd it more effi cient to select

professional service providers (auction-

eers) who have all of the tools to market

our equipment in the optimal way and to

the broadest spectrumrdquo

TAKE ADVANTAGE OF ONLINE AUCTIONS

Perhaps the biggest trend mdash and the

most commonly suggested best practice mdash

for remarketing used yellow metal is tak-

ing full advantage of online auctions

For one online auctions reach a much

wider audience which can be critical

especially when selling highly special-

ized equipment Appealing to a wider

audience can also make for much higher

resale values

ldquoLast year we sold some obsolete (no

longer manufactured) and high-engine-

hour used sweepers for approximately

$45000 a piecerdquo said Mitchell ldquoWe also

doubled our price of police motorcycles

through the world wide webrdquo

Schulte of Moline shared a similar suc-

cess story ldquoOne of the most remarkable

returns was on a John Deere model 401

tractor that we sold nearly fi ve years ago

The City originally purchased it for $6748

in 1981rdquo he said ldquoThe department had

changed its operation and needed a front-

wheel assist tractor as a replacement for

this unit We marketed the 25-year-old unit

on eBay with a video of the loader oper-

ating and the three-point hitch function-

ing properly When the auction closed

the tractor sold for $9400 mdash more than

$2600 higher than what the City had paid

25 years priorrdquo

Although many online auctions sell

units within the US appealing to a global

audience can also boost sales Mitchell

for one added a worldwide auction to in-

crease exposure ldquoWe have found this to

be very lucrative especially with certain

specialized and construction equipment as

a result of the demand created by interna-

tional disasters that have occurred in recent

yearsrdquo he said

In addition to expanding the potential

audience and increasing resale prices on-

line auctions can help avoid many of the

costs associated with live auctions

ldquoWhile on-site live auctions were the

standard for years it had its limitations The

Saturday auction days were very expensive

to host hidden costs such as overtime ad-

ministration costs transporting equipment

to the auction site and security risks played

a part in our decision to go to the online

auctionsrdquo Lykins of Jonesborough said

ldquoIn addition to expense bad weather is apt

to play a detrimental role at a live auction

During the best live auctions we may have

30 potential bidders on the equipment the

online auctions offer hundreds or at times

thousands of potential bidders Online auc-

tions have drastically reduced the expense

of surplus asset disposal The percentage

of the sale is a fi xed amount and very few

hidden costs are associatedrdquo

BEST PRACTICES PRACTICESK ETING OFF-ROAD EQUIPMENT

GF06_Off-Roadindd 39GF06_Off-Roadindd 39 51811 33508 PM51811 33508 PM

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 42: Government Fleet June 2011

40 Government Fleet June 2011

O F F - R O A D

Coming June 2011

wwwfleetcertificationcom

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PM

For Tom Monarco fl eet manager

City of Colorado Springs Colo online

auctions have eliminated restrictions on

when units can be sold and done away

with transportation costs ldquoWe used to

go through big auction companies such as

Ritchie Brothers or vehicle auction com-

paniesrdquo Monarco said ldquoWe decided to

use Public Surplus or eBay because of not

having the additional cost of hauling the

equipment to the auction sites We do not

have to wait till the auction companies

have their sales we can sell anytimerdquo

While online auctions have some very

apparent benefi ts itrsquos important for fl eet

managers to remember that they donrsquot

run themselves mdash they require attention

in order to get results

ldquoOnline auctions are a fl eet managerrsquos

dream But itrsquos important to be involved

stay on top of the process and be fl exible

you are the decision-maker on a lot of the

details of the process Get your organiza-

tion the best deal possiblerdquo Lykins said

Schulte also offers a third option

combining live auctions with an online

component ldquoWe use the Internet in some

fashion for all our auctions even when

we have a local auctioneerrdquo he said ldquoFor

example we post videos online for the

equipment that we are disposing so the

local auctioneer can promote the item

prior to the sale to potential bidders out-

side the local area We have also used

live auctions that allow Internet bidding

simultaneously for our specialty items to

broaden the scope of the audiencerdquo

TAILOR SALES PITCH TO THE ONLINE ENVIRONMENT

With online auctions gaining popu-

larity itrsquos critical for fl eet managers who

rely on them to also know the needs of

marketing to these unique audiences The

sales pitch is simply not the same as it is

in a live auction The buyer canrsquot hear the

engine run walk around the vehicle or

accurately assess the condition Photog-

raphy and video can help

Lykins of Jonesborough offered valu-

able advice when approaching the photo

and video task ldquoWhen photographing the

equipment for online auctions look at ad-

vertisements for new equipment Pay at-

tention to the camera angles in the glossy

new ads and notice that most yellow met-

al ads have action the loaders are load-

ing the rollers are rolling and the tren-

chers are trenchingrdquo Lykins said ldquoMost

online auction sites have video available

Recruit an operator who is familiar with

the asset and make a fi ve-minute video of

the asset Show the unit doing its job let

the bidder hear the engine and get foot-

age of all the attachments If the online

auction site does not feature video link

your video via any popular video-sharing

program on the Webrdquo

Using appealing photos and accu-

rate video helped Lykins and the Town

of Jonesborough see major remarket-

ing success The Townrsquos fi rst taste of

online auctions was with police-seized

vehicles It was such a success that the

method of online auctions of the sur-

Gary Lykins fl eet manager for the Town of Jonesborough Tenn remarkets all of his surplus rolling assets He relies on the wwwGovDealscom online auction website

Allen Mitchell CPFP fl eet manager at Sno-homish County Wash primarily uses two auction services to remarket a broad scope of equipment ranging from motorized tools to attachments to construction equipment to over-the-road trucks The County also occasionally includes trade-in clauses with its truck and equipment bids and sells to local munici-palities when therersquos an interest

JD Schulte fl eet manager City of Moline Ill sells nearly all of the Cityrsquos surplus items on eBay or through Public Surplus but also supple-ments local live auctions when they are used by using YouTube to post promotional videos prior to the auction In some cases the City has used live auctions that allow simultaneous Internet bidding

Curt Cole business manager maintenance and operations for Delaware Department of Transportation (DOT) remarkets off-road equipment that is small in nature such as mowing loading and some construction equip-ment Most of it is sold at auction and occasionally online

Tom Monarco fl eet manager City of Colo-rado Springs Colo sells all of the Cityrsquos off-road equipment which in-cludes loaders backhoes dozers etc through Public Surplus or eBay

THE BEST PRACTICES PANEL

LYKINS

MITCHELL

SCHULTE

COLE

MONARCO

Appealing photos and accurate video of a new Holland 555 backhoe helped the Town of Jones-borough Tenn see major remarketing success

Snohomish County Wash conducts research online and locally before selling equipment

Delaware DOT provides prospective buyers access to equipment maintenance records

GF06_Off-Roadindd 40GF06_Off-Roadindd 40 51811 33509 PM51811 33509 PM

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 43: Government Fleet June 2011

Coming June 2011Coming June 2011

wwwfleetcertificationcomwwwfleetcertificationcom

in partnership with

GF05

-4311

Certify Your Fleet Operation

GF0611certificationindd 1 51811 125353 PMGF06_Off-Roadindd 41GF06_Off-Roadindd 41 51811 33515 PM51811 33515 PM

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 44: Government Fleet June 2011

42 Government Fleet June 2011

O F F - R O A D

GF0611toolboxindd 1 51311 114257 AM

plus equipment was quickly approved

by Town leadership Using both video

and still photography of a new Holland

555 backhoe the Town recently fetched

a $9400 price tag at auction mdash even

though previous auctions of a similar

backhoe only brought $6500

A similar approach has yielded im-

proved results for Monarco and the City of

Colorado Springs too Video of a running

engine and photos of the equipment while

running have increased unit resale values

by 10-12 percent

When using the Internet to remarket

Schulte of Moline put it best ldquoThe un-

known is a huge obstacle with online auc-

tions If a potential bidder can hear an en-

gine or see an item operate it takes a lot of

the uncertainty out of his or her decision to

bid Give your potential bidders every op-

portunity to lsquofeelrsquo the unit even if they are

1000 miles awayrdquo he said

BE THE BUYER amp BE HONESTKnowing your market is key Who will

likely buy this equipment What will they

want out of it Putting yourself in the shoes

of your buyer can help you take action to

truly appeal to their needs mdash and their

purchasing sensibilities Cole of Delaware

DOT put it simply ldquoGet in contact with the

customer base that uses this equipment and

you get better pricingrdquo

Being the buyer starts with an ac-

curate and detailed description of the

equipment ldquoAbove all be honest and

accurately represent the condition of the

equipment Condition is subjective and

expectations are shaped by your descrip-

tion of the equipmentrdquo Lykins of Jones-

borough suggested ldquoDonrsquot give opinion

in the description stick to the facts Try

to imagine a prospective market for the

surplus asset a logging company a farm-

er a tree removal service perhaps Then

decide lsquoWhat does a prospective buyer

want to knowrsquo rdquo

Schulte of Moline agreed and recom-

mended paying attention to which extras

to include particularly with off-road

equipment ldquoKnowing what is important

to the next owner is key Including all the

service and parts manuals with the auc-

tions seem to make a differencerdquo he said

ldquoEquipment can be very unique and re-

quire special tools procedures and parts

to keep them maintained (unlike cars and

trucks) so the manuals can make a huge

difference to the next ownerrdquo

Once yoursquove appealed to the particular

sense of your buyers Lykins suggested in-

viting them to see the equipment as the fi -

nal hook to make a sale ldquoInviting potential

bidders to view the equipment during the

auction period helps get a bidder investedrdquo

he said ldquoIf a bidder is willing to come

down and view the asset during an online

auction that means he or she has invested

some time and energy into the purchase

and usually means that person will be one

of the fi nal biddersrdquo

When having bidders on-site Cole rec-

ommended having maintenance records

available for inspection too as well as hav-

ing the equipment section on hand to talk

to prospective buyers about the condition

of the equipment ldquoWe typically maintain

equipment well over its life to have it per-

form when needed Showing our mainte-

nance records demonstrates our care for

the equipmentrdquo

AVOID PITFALLS UNIQUE TO lsquoYELLOW METALrsquo

While many traditional remarketing

techniques apply to off-road equipment

Lykins of Jonesborough and Schulte of

Moline offer a few pitfalls to avoid that are

unique to these assets

For instance unlike typical fl eet units

used ldquoyellow metalrdquo buyers will have a

greater interest in the accessories mdash and

that means those should be highlighted in

the resale process ldquoUnlike cars that are

usually used for transportation nearly all

equipment is doing some type of lsquoworkrsquo for

the ownerrdquo Schulte ldquoPTO-driven accesso-

ries functioning attachments etc are im-

portant to the next potential ownerrdquo

Documentation can also be a key com-

ponent requiring a little extra attention

ldquoYellow metal traditionally does not have

a title so be sure to document everything

from the authority that sent the asset to sur-

plus to the serial number and engine num-

bers all the way to the check number of the

purchaserrdquo Lykins advised

MASTERING THE ARTWhile many methods of remarketing

have proven results ultimately the success

of the task is up to the fl eet manager Tai-

loring remarketing to the specifi c type of

equipment the right market and budget-

ary considerations are key to successful

remarketing of off-road equipment

ldquoLike so much else in fl eet there are no

pat answers to equipment disposalrdquo Mitch-

ell of Snohomish County said ldquoObviously

we would always like to buy the equipment

for the lowest cost and sell it at the highest

price at the end of its economic life I think

it is at least as much art as sciencerdquo

SOURCESbull Curt Cole business manager maintenance and operations Delaware

Department of Transportation E-mail curtcolestatedeus

bull Gary Lykins fleet manager Town of Jonesborough Tenn E-mail g_lykinsembarqmailcom

bull Allen Mitchell CPFP fleet manager Snohomish County Wash E-mail allenmitchellcosnohomishwaus

bull Tom Monarco fleet manager City of Colorado Springs Colo E-mail tmonarcospringsgovcom

bull JD Schulte fleet manager City of Moline Ill E-mail jschultemolineilus

The City of Moline Ill sells nearly all of its surplus items online and also promotes local live auctions using YouTube ldquoIf a potential bidder can hear an engine or see an item operate it takes a lot of uncertainty out of his or her decision to bidrdquo said Fleet Manager JD Schulte

GF06_Off-Roadindd 42GF06_Off-Roadindd 42 51811 33515 PM51811 33515 PM

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 45: Government Fleet June 2011

USE THE FLEET TOOLBOX TO

Compare your eet using a bull robust benchmarking tool Analyze labor rates bull Reduce vehicle downtimebull Benchmark staf ng against similarly sized eetsbull Ensure JIT inventory processesbull Determine facility size requirementsbull Project employee and labor costsbull Network con dentially with other eet managersbull Review RFP samples and policy manualsbull Join a community of professionals with challenges bull similar to your own at www eettoolboxcom

Ensure JIT inventory processesbull

USE THE FLEET TOOLBOX TO

Compare your eet using a bullrobust benchmarking toolAnalyze labor rates bullReduce vehicle downtimebullBenchmark staf ng against similarly sized eetsbull

INTRODUCING

Equipped with all the tools you need to run an efficient fleet

DEVELOPED BY

GF Toolbox concept FINALindd 1 51311 110342 AM

GF0611toolboxindd 1 51311 114257 AMGF06_Off-Roadindd 43GF06_Off-Roadindd 43 51811 33519 PM51811 33519 PM

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 46: Government Fleet June 2011

44 Government Fleet June 2011

BF0511greenflt_confindd 1 5511 111559 AM

N E W P R O D U C T S

OEM DATA DELIVERY MULTI-PUMP

OEM Data Deliveryrsquos

Multi-Pump allows fl eet

management to precisely

track and document the

use of every fl uid includ-

ing fuel engine oil and

transmission and hydraulic

fl uid for each fl eet unit

The wireless paperless

and ldquohands-freerdquo technol-

ogy identifi es each vehicle

its location and the fl uids

dispensed to it using GPS

technology and a radio antenna Captured information can be accessed via

e-mail or password-protected Web reports The Multi-Pump also generates

custom service alerts maintains individual vehicle histories and facilitates

important calculations and analyses

WWWOEMDDCOM

NETWORKFLEET AT-1400 ASSET TRACKER

Networkfl eetrsquos AT-1400 Asset Tracker is a

battery- powered tracking device for fi xed and

movable assets without a constant source of power

Property and equipment such as trailers or gen-

erators can be tracked along with vehicles in Net-

workfl eetrsquos existing online system

The AT-1400 uses wireless communica-

tion and GPS technology to report location and

movement for fi eld assets including heavy-duty

equipment and other valuable property The AT-

1400 features a battery life lasting up to six years

offers confi gurable location update rates and is

programmable over the air

The device comes with a three-year

warranty

WWWNETWORKFLEETCOM

The Multi-Pump installs on any fuel lube or pickup truck or on fuel stations or remote bulk tanks and features security options for employee or equipment approval

The AT-1400 features hardened sealed enclosures to al-low for maximum functionality in extreme environ-

mental conditions according to Networkfl eet

COLE HERSEE VOLTAGE SENSING RELAY amp TIMER

Cole Herseersquos Voltage Sensing Relay amp

Timer (VSRT) conserves the starting power

of a vehicle battery by shutting off auxiliary

loads when starting voltage drops to a low

level or a pre-set timer times out

The FlexMod VSRTrsquos service life ex-

ceeds 1 million onoff cycles according to

the company The device can handle many

loads directly or drive a relay or solenoid for

higher amperages Overvoltage and overcur-

rent protective measures are also included

The VSRT is weather-resistant water-

proof and dustproof and can be mounted

anywhere on the vehicle with minimal wir-

ing and a snap-in connector

WWWCOLEHERSEECOM

ADAMSON INDUSTRIES CORP DURO-FLASH Adamson Industries Corprsquos Duro-Flash a product used to replace an

incendiary fl are is used by fi rst responders highway crews and other

departments that need to be able to mark vehicles close a lane direct

traffi c or make a place more visible

The Duro-Flash has no switches or moving parts and has an incorpo-

rated onoff switch mdash plug it in to turn it off and charge it and unplug it

to turn it on and use The Duro-Flash is waterproof and weatherproof and

features a lithium battery that lasts for hours between charges according

to the company

WWWADAMSONINDUSTRIESCOM

erators can

workfl

The

tion an

movem

equipme

1400 fea

offers co

programm

The

warranty

WWWNE

The AT-1400low for maxi

me

The FlexMod VSRT measuring 4x3x1 inches alerts a vehicle operator when starting voltage is low and temporarily cuts off any non-essential electrical loads thus conserving power

The Duro-Flash kit consists of an aluminum alloy unit enclosure with six hermetically sealed fl ash units and one rechargeable polymer lithium-ion battery

GF06_Productsindd 44GF06_Productsindd 44 51811 33543 PM51811 33543 PM

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 47: Government Fleet June 2011

For more information please visit us at wwwGreenFleetConferencecom

or call (800) 576 - 8788

OCTOBER 3-4 2011Gaylord Texan bull Grapevine TXThe Green Fleet Conference amp Expo is the only event which focuses

exclusively on environmental sustainability for car and truck fl eets Others may

touch on the subject but Green Fleet Conference amp Expo specializes in

it offering two intense concentrated days of education enterprising dialogue

and engaging exhibits If you are a fl eet manager in either the corporate or

government arena make room in your calendar for this must-attend event

PAST SPONSORS INCLUDE

Supporting Organization

GFC04-5111

BF0511greenflt_confindd 1 5511 111559 AMGF06_Productsindd 45GF06_Productsindd 45 51811 33559 PM51811 33559 PM

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 48: Government Fleet June 2011

46 Government Fleet June 2011

ACTIONASSETSCOMActionAssetscom is an online marketplace ded-

icated to creating a best-in-class experience for both

buyers and sellers The company provides a guaran-

tee on all titled vehicles and most bill of sale on-road

equipment It allows asset managers to offer their

units with ldquono reserverdquo to the buyer base a valuable

feature for buyers The company does not charge a

sale fee to sellers and there are no contracts to sign

ActionAssetscom was formed by the principals

of its parent company Fleet Lease Disposal Inc

(FLD) a 30-year veteran remarketing company

WWWACTIONASSETSCOM

ActionAssetscomrsquos guarantee makes asset liqui-dation fast and worry-free the company stated

PROPERTYROOMThrough PropertyRoomrsquos

subcontracting relationship

with Copartcom and spe-

cialized pricing and ben-

efi ts for government clients

the company has negotiated

competitive pricing options

for fl eet managers to receive

the highest return on their investment PropertyRoomcom was founded in

1999 for the purpose of combining a technological solution with a compre-

hensive knowledge of the disposition of police and municipal property

PropertyRoomcom maintains more than 2600 contracts and focuses

on new business and expanding existing business through such ventures as

its vehicle Platinum and Titanium Services with Copartcom

WWWPROPERTYROOMCOMFLEET

PropertyRoomcom was founded as a combina-tion of a technological solution with knowledge of vehicle disposition

REMARKETING WEBSITES

eBAY MOTORS eBay Motors a unit

of eBay Inc offers new

and used vehicles mo-

torcycles equipment

and the parts and acces-

sories to go with them

Selling on eBay Mo-

tors is similar to selling on eBaycom There are several ways to list

including auction and fi xed price formats and fl eet managers can

open their listings to either a local or national audience Sellers can

upload an unlimited amount of images

eBay Motors also offers free vehicle history reports third party

inspections vehicle purchase protection and seller feedback

WWWEBAYMOTORSCOM

GOVDEALSGovDeals is an online

auction marketplace helping

government agencies and mu-

nicipalities generate revenue

without any capital expendi-

ture With more than a decade

of experience GovDeals can

expose government surplus

property to a worldwide bidder

base of 13 million It is non-

exclusive and customers can

try it with just an MOU (memo of understanding) and a

variety of program options GovDeals assists fl eet manag-

ers in the vehicle remarketing process by providing indi-

vidualized service to maximize the profi t on vehicles that

have reached the end of their lifecycles

WWWGOVDEALSCOM

More than 4 million new and used vehicles have been sold on eBay Motors

GovDeals has more than 3700 clients from across the US and Canada

IRONPLANETIronPlanet is an online marketplace for used heavy equipment Sellers achieve more

profi table sales through low transaction costs and better price realizations through a global

audience of buyers according to the company IronPlanetrsquos guaranteed inspection reports

and IronClad Assurance enable buyers to bid with confi dence IronPlanet is backed by

Accel Partners Kleiner Perkins Caufi eld and Byers Caterpillar Komatsu and Volvo

WWWIRONPLANETCOM

IronPlanet focuses specifi cally on auction of used construction and agricultural equipment

GF06_Productsindd 46GF06_Productsindd 46 51811 33600 PM51811 33600 PM

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 49: Government Fleet June 2011

Auto Service Professional reg

A fl eet managerrsquos best friend is a well-informed maintenance staff

Bobit Business Media the authority on fl eet vehicle management for 50 years has launched a new publication designed to help you in your maintenance and repair needs

Auto Service Professional (ASP) is designed to provide you and your maintenance team with easy-to-read content on

ASP

ASP

SIGN UP TODAY for your free

Auto Service Professional subscription and free weekly

e-newsletter online atautoserviceprofessionalcomsubscribe

3515 Massillon Road Suite 350Uniontown OH 44685-6217(330) 899-2200 fax (330) 899-2209Web site wwwautoserviceprofessionalcom

Other Bobit Business Media Automotive Magazines

Auto Service Professional reg

GF06_Productsindd 47GF06_Productsindd 47 51811 33604 PM51811 33604 PM

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 50: Government Fleet June 2011

48 Government Fleet June 2011

PUBLIC FORUM By Mike Antich

Lifecycle costing is the

process of estimating

the total cost of owner-

ship (TCO) for an on-road or

off-road asset for the length

of its anticipated service life

This cost is determined by

calculating the assetrsquos life-

time holding costs and life-

time operating costs

Holding costs (or fi xed

costs) are comprised of the

initial acquisition expense

and projected depreciation

Operating costs (or running

costs) are those expenses di-

rectly related to operating a

piece of equipment such as

the actual dollars spent on

fuel scheduled and unsched-

uled maintenance tire re-

placement and oil changes

By combining the projected

holding costs and operating

costs a fl eet can quantify an

assetrsquos anticipated TCO

However the 2010 die-

sel emissions standard and

the resulting changes in

diesel emission technology

have prompted discussion on

whether to modify how oper-

ating costs for diesel-powered

equipment are calculated in

particular fuel cost per mile

Approximately 85 percent of

2010-compliant diesel en-

gines are manufactured us-

ing selective catalytic reduc-

tion (SCR) technology SCR

technology uses a urea-based

diesel exhaust fl uid (DEF)

and a catalytic converter to

signifi cantly reduce oxides

of nitrogen (NOx) emissions

However the use of DEF has

created a new expense com-

ponent during an assetrsquos ser-

vice life How should DEF

expense be incorporated in

lifecycle cost methodology

ldquoInstead of only measur-

ing fuel miles per gallon (or

a fuel cost per mile) a trend

is occurring in fl eet manage-

ment to measure lsquofl uid cost

per milersquo or lsquofl uid gallons per

milersquo where the cost of DEF

and the cost of fuel are com-

bined This view believes

DEF is more closely associ-

ated with fuel versus a main-

tenance expenserdquo said Ken

Gillies manager truck op-

erations for GE Capital Fleet

Services

METHODOLOGY USED BY EUROPEAN FLEETS

DEF is a 325-percent so-

lution of ultra-pure urea a

chemical used in a variety of

industries including agricul-

ture which uses it as a fer-

tilizer Urea is a compound

of nitrogen oxygen and hy-

drogen made from natural

gas When heated urea turns

to ammonia In the after-

treatment equipment of an

SCR engine the ammonia

combines with NOx to form

harmless nitrogen and water

vapor Although being used

for the fi rst time in the US

SCR technology has been in

extensive and widespread use

in Europe Japan and Aus-

tralia for many years Some

of these fl eets have adopted

a fl uid-cost-per-mile mindset

when calculating lifecycle

expenses for diesel-powered

assets However this mind-

set has been slow to catch

on with US fl eet managers

with many fl eets not includ-

ing the cost of DEF in life-

cycle cost analyses

ldquoIn the 2011 model-year

few US fl eets were using a

fl uid-cost-per-mile method-

ology when calculating to-

tal cost of ownershiprdquo said

Gillies ldquoUnless you include

your DEF cost you are not

truly calculating the total

cost of ownership since you

are missing an operating

expenserdquo

(In addition to incorporat-

ing DEF expenses in TCO it

is also important to include

diesel particulate fi lter [DPF]

costs)

CALCULATING DEF CONSUMPTION

Average DEF consumption

per truck is approximately 2

percent of fuel consumption

depending on application

duty cycle geography and

load ratings This works out

to one gallon of DEF re-

quired for every 300 miles

traveled (assuming a fuel

economy of 6 mpg) Another

way to calculate usage is that

DEF will be consumed at a

50 to 1 ratio with diesel (For

example for every 50 gallons

of diesel fuel burned one

gallon of DEF will be used)

Only very small amounts of

DEF are required to reduce

a diesel enginersquos NOx emis-

sions The actual amounts

of DEF required vary de-

pending on the demands on

the engine and the amount

of NOx it is producing but

experience in Europe and Ja-

pan shows that dosing will be

about 2 percent of the diesel

consumption

You can easily calculate

the amount of DEF that will

be used during an assetrsquos

service life if you know its

average fuel consumption

To calculate projected DEF

usage divide the average an-

nual miles driven by the as-

setrsquos mpg to determine the

number of gallons of diesel

consumed per year Letrsquos say

this equates to 2500 gallons

of diesel fuel per year With

DEF usage at 2 percent of

fuel consumption this would

equate to 50 gallons of DEF

per year

Just as with the cost of

diesel DEF prices can fl uc-

tuate Higher prices for natu-

ral gas as well as ammonia

prices have a direct impact

on urea prices Urea prices

are driven by global supply

and demand The retail price

for a two-gallon container of

DEF varies from $10 to $15

depending upon the region

and location

Gillies believes it will be

more commonplace to adopt

a fl uid-cost-per-mile meth-

odology and include DEF in

lifecycle costing calculations

ldquoIt is an integral part of cal-

culating your true cost of

ownership in operating SCR-

equipped diesel- powered

vehiclesrdquo

Let me know what you

think

mikeantichbobitcom

MEASURING FLUID COST PER MILE TO CALCULATE TCO FOR

SCR-DIESEL ASSETS

GF06_Forumindd 48GF06_Forumindd 48 51811 33628 PM51811 33628 PM

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 51: Government Fleet June 2011

ZZZQMSDFRRSRUJJRYAacuteHHW

ampRPSHWLWLYHOLGampRQWUDFW3XUFKDVLQJ6ROXWLRQV1-3$LVRIAgraveFLDOOHQGRUVHGE

reg

6$0621(4830(17

)UHHRXUVHOI

$VWULQJHQWSURFHVVHWDLOHGVSHFLAgraveFDWLRQV3URMHFWGHODV

6DacuteQRZDμDQG-211-3$

2XUampRQWUDFWVKDYHXQGHUJRQHDQDWLRQDOFRPSHWLWLYHELGSURFHVVRQRXUEHKDOI$QRFRVWQRREOLJDWLRQ0HPEHUVKLSLVDOORXQHHGWRDYRLGUHSHDWLQJWKHZRUNZHmiddotYHDOUHDGGRQHIRURX

ltRXUAgraveUVWVWHS-RLQWRGDDWZZZQMSDFRRSRUJJRYAacuteHHW

5)31RWIRUPH

GF06_C3-C4indd 993GF06_C3-C4indd 993 51811 33647 PM51811 33647 PM

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994
Page 52: Government Fleet June 2011

THE CHALLENGE SAVING MONEY OVER THE LONG RUN

OUR SOLUTION AWARD-WINNING LIFECYCLE COSTS

Nine GM models have been awarded Vincentricrsquos 2011 Best Fleet Value

in Americatrade with Chevrolet sweeping the full-size pickup and full-size

van categories The awards honor vehicles with the lowest lifecycle

costs in their segment determined by measuring eight cost factors For

outstanding savings over time put our award-winning vehicles to work

For more solutions visit gmfleetcom

Vincentric awards based on 2011 model year analysis

copy2011 General Motors LLC

| 2011 CHEVROLET SILVERADO 3500HD

| 2011 CHEVROLET EXPRESS

OUR VINCENTRIC 2011 BEST FLEET VALUE IN AMERICAtrade WINNERS Cadillac SRX Base FWD ndash Premium Mid Size Crossover

bull Chevrolet Tahoe Commercial 2WD ndash Large SUV bull Cadillac Escalade ESV Platinum 2WD ndash Prestige bull Chevrolet

Avalanche LS 2WD ndash Sport Utility Truck bull Chevrolet Silverado 1500 Work Truck Regular Cab 2WD 119 ndash 12 Ton Full

Size Pickup bull Chevrolet Silverado 2500HD LT Regular Cab 2WD ndash Heavy Duty 34 Ton Full Size Pickup bull Chevrolet

Silverado 3500HD LT Regular Cab 2WD SRW ndash Heavy Duty 1 Ton Full Size Pickup bull Chevrolet Express Cargo G1500

SWB ndash Full Size Cargo Van bull Chevrolet Express Passenger G1500 SWB ndash Full Size Passenger Van

GF06_C3-C4indd 994GF06_C3-C4indd 994 51811 33657 PM51811 33657 PM

  • GOVF_991
  • GOVF_992
  • GOVF_1
  • GOVF_2-3
  • GOVF_4-5
  • GOVF_6-9
  • GOVF_10-15
  • GOVF_16-23
  • GOVF_24-29
  • GOVF_30-33
  • GOVF_34-37
  • GOVF_38-43
  • GOVF_44-47
  • GOVF_48
  • GOVF_993
  • GOVF_994

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