Government Fleet March/April 2011 by Kelly Bracken

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GOVERNMENT FLEET

MARCH/APRIL 2011 • A BOBIT PUBLICATION • VOLUME 9 - ISSUE 2

WWW.GFLEET.COM

FEATURES 14 BOOSTING MORALE CAN HELP IMPROVE OPERATIONS Strong leadership and understanding, combined with a little creativity, can help keep productivity and employee morale high when resources are low.

22 LEVERAGING PROCUREMENT DOLLARS IN A ZERO-GROWTH BUDGET ENVIRONMENT Public sector fleet manager creativity is one key to “getting the most bang for the buck” in a time of tightening purse strings and unpredictable fuel prices.

26 BE PART OF THE SOLUTION, NOT PART OF THE PROBLEM As public sector fleets face increasing scrutiny, fleet management must keep the public and officials informed, ensure competitive service costs, and maintain customer service levels while reducing costs.

28 A ‘STATE OF THE FLEET’ REPORT CAN ENHANCE FLEET IMAGE Fleet managers can use an annual fleet report to inform decision-makers who impact funding, user departments, and fleet employees about both fleet management accomplishments and challenges.

32 SOLUTIONS TO THE TOP CHALLENGES FACING PUBLIC SECTOR FLEETS A group of Florida fleet professionals representing some of the top fleets in North America met to discuss the top 10 challenges facing public sector fleets and what they are doing to meet them.

36 DEPARTMENTS 4 ON THE WEB

36 BEYOND THE PATROL CAR Law enforcement vehicles come in all shapes in sizes. In addition to the traditional patrol vehicle or motorcycle, there are many other vehicles law enforcement officers use to keep the peace.

//////// O F F - R O A D

E Q U I P M E N T //////////////////////////////////

38 WHAT TO CONSIDER WHEN SPEC’ING EXCAVATORS Whether renting or buying, fleets must ensure excavator specs meet the needs of the application. Fleet managers and equipment manufacturers weigh in on factors to consider.

Government Fleet

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8 INDUSTRY NEWS ■ San Diego Fleet Functions Out for Bid ■ Calif. to Cut Passenger Fleet in Half 48 PUBLIC FORUM ■ Fleet Management is People Management ON THE COVER:

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 Offices. POSTMASTER: Send address changes to Government Fleet, P.O. 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 first issue. Bobit Business Media reserves the right to refuse nonqualified subscriptions. Please address editorial and advertising correspondence to the executive offices 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.

6 MAIL STOP

O The Cover On Boosting morale B iimproves pproductivity and sshould be a priority ffor any manager. Fleet managers F sshare methods oof keeping staff motivated without m ooffering raises.

March/April 2011

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GPS Insight Customizable Dashboard Interface

8+0+ Ø3 / For the 5th year in a row, GPS Insight will exhibit at the NAFA Institute & Expo.

Stop by and see us at Booth #915

New Features Added This Month* » Garmin “Canned” Messages Drivers can send 1-click responses to dispatch, rather than typing each out.

» Comparison Graph Dashlet Compare groups/vehicles in terms of mileage, idle hours, and speeding activity.

(in the Greeen Zone) and enter to win a

Free Garmin nuvi.

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*GPS Insight continually improves our fleet tracking product. Every month new features are added based on customer requests. Please visit blog.gpsinsight.com for more information about these improvements.

2/23/11 2:00:07 PM

What You're Reading www.government-fleet.com w

THE

Government-fleet.com’s Top 5 most popular stories as of February 22, 2011.

CITY OF SAN DIEGO FLEET FUNCTIONS OUT FOR BID The Fleet Services Department maintains more than 4,000 City-owned vehicles, including police cars and fire trucks.

TACOMA TO BUY 91 EVS AND HYBRIDS The City Council approved the purchase of ten 2011 Nissan LEAF electric vehicles, seventy 2011 Ford Crown Victoria Police Interceptor vehicles, and eleven 2010 Ford Fusion Hybrid detective vehicles in the amount of $2.6 million.

SACRAMENTO REDUCES FUEL COSTS & IMPROVES PRODUCTIVITY WITH TELEMATICS After an ROI analysis, the City has concluded that the system has paid for itself in two short months. Now that is efficiency!

GRAND JURY PRAISES FRESNO COUNTY SHERIFF’S FLEET MANAGEMENT The grand jury investigated the Fresno County Sheriff’s Office’s vehicle purchasing program, take-home vehicle program, and its fleet maintenance and offered no recommendations for changes.

CNG REFUSE TRUCKS TO SAVE RICHMOND $1M As a member of the U.S. Department of Energy’s Clean Cities program, the City of Richmond saw the opportunity to make a difference through the use of alternativefuel-powered vehicles. In addition, by analyzing its overall fleet and routes, the City has concluded it can reduce its refuse truck fleet from 38 to 25 and its routes from 109 to 88.

Telematics

Safety

Remarketing

2011 Nissan LEAF

WHAT WE’RE W B LO BLOGGING ABOUT MARKET TRENDS By Mike Antich www.government-fleet.com/ Blog/GF-Market-Trends.aspx ANTICH

December 6: You’re Only as Good as Your Staff November 22: Be Part of the Solution, Not Part of the Problem November 15: Maximizing Utilization as a Cost-Containment Strategy November 8: Redefining Fleet Management in an Era of ZeroGrowth Budgets

THE FLEET CHANNELS Industry Trends

Fuel

Use the navigator on the government-fleet.com 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 specific topic.

FLEET BLOGS:

Research, compare, and view the latest equipment and vehicles for your public sector fleet.

February 21: What are your vehicles saying?

• • • • •

The Voice of the Fleet Community (www.fleetblogs.com)

by Kate Harland

Snowstorms Have City Fleets Working Overtime Asphalt Equipment

February 15: Do Alternative Fuels Need Government Incentives?

Maintaining Pavement and Asphalt Equipment

by Joseph Thompson

Maintaining Loaders and Backhoes

February 14: Current Events Impact Fleets….

Keeping Grounds Maintenance Equipment in Top Shape

by Jennifer Sutherland February 9: Middle East Chaos and Fuel Prices

by Wayne Smolda

RECEIVE BREAKING NEWS WHEN IT HAPPENS Sign up for Government Fleet’s bi-weekly eNewsletter for timely updates on the latest industry news in public sector fleet management, as well as research and trends, industry events, and current Government Fleet magazine articles and features. Subscribe at www.government-fleet.com. 4

Government Fleet

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January 30: $5 a Gallon Gasoline by 2012

by Mike Wade Interested in starting your own blog? Go to www.fleetblogs.com for more information.

March/April 2011

2/23/11 2:01:37 PM

GF0610fordgreener.ind

GREENER. At Ford Fleet, we believe in getting the most out of green technology. We’re continually working to improve vehicle performance while decreasing negative environmental impact. Our proprietary EcoBoost ™ engine* can do just that for your fleet. 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 fleet — to ensuring every mile your fleet drives barely leaves an impression at all. Ford Fleet. Get More.

ﬂeet.ford.com *Optional, available on select models. **EPA-estimated 17 city/25 hwy/20 combined mpg (Taurus SHO/MKS); 16 city/22 hwy/18 combined mpg (Flex/MKT), EcoBoost AWD.

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MAIL STOP STAFF BURN-OUT CONCERNS Wow, I had to look to see if you were hiding in my office somewhere after reading the editorial, “Increased Concern about Staff BurnOut.” (See January/February GF.) This article sounded like “As Loveland’s Fleet Turns.” It is comforting to know our situation is shared by countless colleagues across the country. My very astute director counseled me one day when I was ranting about “doing so much with less, I was now doing everything with nothing.” He pointed out that throughout his public service career, he had never met a manager who had sufficient time to complete everything he or she needed to get done. And, if he or she had, that meant the manager’s duties could probably be completed by lower staff and he or she wasn’t needed in the organization. That fact makes you realize you can only do your best and probably will never be “caught up.” The important perspective is always try and make progress — never give up! Steve Kibler, ACFM Fleet Manager City of Loveland, Colo.

NEEDS CONSTANT ATTENTION The blog, “You’re Only as Good as Your Staff,” was right on target. (See page 48 in this issue.) We use comment cards, employee surveys, and electronic survey tools, but, when all is said and done, it is a behavior we are trying to cultivate within our employees at all levels. I care less about what is on 6

Government Fleet

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a customer survey than I do about how my staff and I interact with our customers in their daily activities. I always view surveys as a “what happened right before I filled this out” versus hearing that we treated customers the same exceptional way each and every day. This is not to say we have a perfect customer service atmosphere; it is a growing thing that needs constant attention to ensure it grows. Our staff members know the importance of service, and we remind each other of that. Dennis Hogan Fleet Services Manager Fleet Services Division City of Cedar Rapids, Iowa

INFLUENCED & ENLIGHTENED I retired after 40-plus years in automotive fleet service, 20 of those years as fleet director of Marion County, Fla., Sheriff’s Office. I want to let you know that through those years, you have greatly influenced and enlightened my career with your articles. Your journalistic style always made the subject matter objective and understandable. Thank you for your contribution to our profession. Bill Boss, the former operations manager, was promoted to the fleet director position. In preparing him for the position, I gave him one of your articles I have had pinned to my

cork board for several years titled, “14 Traits of a Great Fleet Manager.” I told him if he attains those traits, he will succeed. You should put that article out every few years to remind everyone as to what they’re supposed to be doing. Thank you for all you have given to our profession. Wyatt Earp Retired Director Marion County Sheriff’s Office Fleet Management Division Ocala, Fla.

CUSTOMER SERVICE ROADMAP The blog, “You’re Only as Good as Your Staff,” was right on target, as usual. While working for the City of Oxnard, Calif., we took on the theme of improving customer service and established a focus group from throughout the shop to work on those improvements. It turned out to be much bigger than we thought, t with w numerous o processes c that affect a our customers’ c perception p of our o service. The most important im thing we did, th however, ho was w create a survey to ascertain as what wh our customers actually want and expect from us, not what we think they want. We already ask them how we’re doing, so this was a fresh and productive approach. We now have a roadmap of what our customers think is important and what they value most. We are using that to direct

our efforts for further process improvement. Dan Berlenbach Equipment Maintenance Superintendent Equipment Mgmt. Division City of Phoenix

At the time the above letter was written, Dan Berlenbach was fleet services manager for the City of Oxnard, Calif. Since then, Berlenbach accepted the position of equipment maintenance superintendent on Jan. 10 for the City of Phoenix Equipment Management Division. Berlenbach had worked for the City of Oxnard since 2004. During his tenure, the City of Oxnard was named No. 4 in the 100 Best Fleets program in 2010. – Editor

BE PART OF THE SOLUTION The GF blog entitled, “Be Part of the Solution, Not Part of the Problem” was a great article! (See www. government-fleet.com/blogs.) Hopefully the pencil-pushers will get a clue at how hard fleet managers work. As for the fleet managers who sit on their bottoms and turn away from any options to save money, hopefully it will cause them to jump up and stop thinking they are untouchable. Thanks for the article. E-mail from JAFTLLC

GAINED A NEW SUBSCRIBER I wanted to let you know the GF blog, “Be Part of the Solution, Not Part of the Problem,” was a wonderful post. You have gained a new subscriber. Please continue this great work, and I look forward to more of your great blog posts. E-mail from ServiceEquipment

March/April 2011

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2/23/11 2:02:26 PM 12/13/10 2:33:04 PM

INDUSTRY NEWS

City of San Diego Fleet Functions Out for Bid VP and Group Publisher Sherb Brown (310) 533-2451 • Sherb.Brown@bobit.com Publisher Eric Bearly (310) 533-2579 • Eric.Bearly@bobit.com Editor and Associate Publisher Mike Antich (310) 533-2467 • Mike.Antich@bobit.com Senior Editors Lauren Fletcher (310) 533-2415 • Lauren.Fletcher@bobit.com

SAN DIEGO – The San Diego City Council approved a plan Feb. 1 to bid out the functions of its Fleet Services Department, which maintains more than 4,000 City-owned vehicles, including police cars and fire trucks. Fleet Services is one division within General Services and is responsible for providing a full range of fleet management services to the City of San Diego. According to council meeting documents, the City intends to acquire the services of a provider (City em-

ployees or outside vendor) to service its Fleet Services operational needs through a managed competition process. City staff will use a Preliminary Statement of Work (PSOW) to create a request for proposals from interested fi rms. PSOW is the first step in the managed competition procurement process. The PSOW documents service specifications and is presented to the City Council for consideration and public comment.

Grace L. Suizo (310) 533-2414 • Grace.Suizo@bobit.com

Calif. to Halve Passenger Vehicle Fleet

Assistant Editor Thi Dao (310) 533-2544 • Thi.Dao@bobit.com Web Editor Greg Basich (310) 533-2572 • Greg.Basich@bobit.com Field Editors Bob Cavalli, Al Cavalli Production Director/Manager Kelly Bracken (310) 533-2574 Brian Peach (310) 533-2548 Art Director Vince Taroc Editorial Consultant Howard Rauch DISTRICT ADVERTISING MANAGERS Publisher/Sales Manager Eric Bearly (310) 533-2579 • Eric.Bearly@bobit.com Great Lakes Robert Brown Jr. 1000 W. University Dr., Ste. 209 Rochester, MI 48307 (248) 601-2005 FAX: (248) 601-2004 Robert.Brown@bobit.com Sales & Marketing Coordinator Tracey Tremblay (310) 533-2518

President & Chief Executive Officer Ty F. Bobit Chief Financial Officer Richard E. Johnson Business and Editorial Office Bobit Business Media 3520 Challenger Street Torrance, CA 90503-1640 FAX: (310) 533-2503 Change Service Requested Return Address Government Fleet PO Box 1068 Skokie, IL 60076-8068

Government Fleet

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Brown stated in a release. Executive Order B-2-11 directs every agency to immediately review their organization’s home storage permits and withdraw those that are not essential or cost-effective. The review will take into account public health and safety employees who may need a vehicle around the clock and situations where it is more cost-effective to provide vehicles to certain employees. Brown’s order instructs agencies and departments to analyze the purpose, necessity, and cost-effectiveness of every fleet vehicle and submit a plan for cutting unneeded vehicles. Non-essential vehicles must be sold or transferred within 120 days of the plan’s approval. Brown will also move underutilized

California Gov. Jerry Brown

vehicles to new locations to improve fleet efficiency. According to the executive order, the State fleet has a replacement value exceeding $1.5 billion, uses more than $90 million in fuel, and incurs tens of millions of dollars in other operating expenses. It also stated that State agencies report thousands of vehicles go underutilized each year.

City of Lincoln Settles Bad Biodiesel Shipment Lawsuit

Chairman Edward J. Bobit

Printed in USA

SACRAMENTO, CA – Governor Jerry Brown issued an executive order Jan. 28 to immediately halt non-emergency new-vehicle purchases and turn in fleet vehicles not essential to State business. The governor plans to cut California’s 11,000-unit passenger vehicle fleet in half. Brown said his goal is to halve the number of the state’s passenger cars, trucks, and home storage permits that allow use of State cars for daily commuting. The Department of General Services estimates the State previously issued approximately 4,500 home storage permits that don’t serve a health or public safety function. “Fifty percent is a starting point. If we find more waste, we’ll make more cuts,”

LINCOLN, NE – The City of Lincoln, Neb., agreed to settle a lawsuit for $40,000 over a shipment of bad soy diesel fuel believed to have damaged 25 City transit buses, according to the Lincoln Journal Star. The City’s mass transit carrier StarTran began having problems with its buses not starting after receiving 21,000 gallons of soy diesel fuel in 2008. Testing confirmed it was caused by “injector and fuel pump clogging from the fuel,” according to the suit. The suit alleged the supplier was negligent for providing the City with bad diesel, which led to the need to replace fuel pumps and injectors that cost nearly $100,000, plus lab testing, the newspaper reported. The City originally sought $101,000 but settled because of the cost of going to trial, according to the newspaper.

March/April 2011

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With ten Vincentric Best Fleet Value in America awards, Toyota vehicles have won more Vincentric awards than any other ﬂeet automaker. With low maintenance costs and high resale value, selecting Toyota for your fleet means you win, too. Call 1-800-732-2798 or visit fleet.toyota.com

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INDUSTRY NEWS Michigan State Police Investigating Alleged Gov’t Fleet Scam CHEBOYGAN, MI – The Cheboygan office of the Michigan State Police (MSP) arrested a man involved in an alleged scam involving government fleet contracts on Jan. 3, according to a release on the MSP website. MSP is currently investigating an alleged fraud/scam complaint in which Bruno Val Novel, 43, posed as the new vendor for state and federal government vehicle fleet contracts, the release stated. The investigation determined the subject allegedly approached numerous small businesses in the automotive service industry in Cheboygan, Presque Isle, Alpena, Alcona, and Iosco counties, promising the businesses they would be the exclusive automotive service pro-

viders for state and federal fleet vehicles. The businesses allegedly signed fraudulent contracts for a new credit card terminal, which required personal identification information from the business owner, including the business’ bank account information. In addition to promising government fleet contract business, Novel also allegedly promised that participating businesses would receive a federal grant of $80,000 in February 2011. Novel was arrested in Alpena on Jan. 3 and was returned to Cheboygan County, where he was charged with five counts of fraudulent activities, each a 10-year felony. He was arraigned in the 89th District Court in Cheboygan, the release stated.

100 Best Fleets

Applications Now Open TORRANCE, CA – Think your fleet has what it takes to earn a spot on Government Fleet’s 100 Best Fleets listing? Submit your entry online to be considered for this prestigious honor. Applications are accepted Feb. 15-April 15. The 100 Best Fleets was established in 2000 by Tom Johnson. “In 2000, after analyzing more than 3,500 fleet departments over 21 years (both public and private), I came to the conclusion the fleet industry was misunderstood and often disrespected,” Johnson recalled. “We decided to ‘shine a light’ on all the good things fleet managers do and educate up the ladder so their supervisors and taxpayers understand the value they provide on a daily basis. Now the recognition piece of the puzzle has become an annual award.” The contest selects the very best-of-the-best fleet operations in North America based on 12 criteria that are the “universal drivers of change and excellence in any operation,” Johnson explained. “Just entering the contest improves the entire fleet culture because you have declared you want to become the best and are willing to commit to an honest assessment of where you stand today and then working toward improvements in the areas you can impact.” The Top 20 Fleets will be ranked, with the remaining 80 fleets listed alphabetically. Winners will be announced at the 2011 Government Fleet Expo & Conference (GFX) in San Diego in June. In 2010, the City of Troy, Mich., earned the No. 1 spot. To apply, visit www.gfleet.com/100best. 10

Government Fleet

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Cape May County Outsources Heavy Equipment Maintenance CAPE MAY COURT HOUSE, NJ – The Cape May County (N.J.) Board of Chosen Freeholders approved Jan. 11 a resolution to authorize shared services agreements with three nearby municipalities for heavy equipment fleet maintenance, according to County officials. The Borough of Avalon will take over maintenance of 113 units, the Township of Upper 42 units, and the Township of Lower 49 units. The contracts include preventive maintenance, yearly inspection, emergency road service, and a stand-by mechanic. They are effective March 25 for a one-year term, extendable for an additional six years.

Columbus Department of Public Utilities to Track Fleet Vehicles COLUMBUS, OHIO – The City of Columbus, Ohio, is installing GPS fleet tracking for the 500 vehicles in the Department of Public Utilities. The City expects this will help improve efficiency of field vehicles. Under an agreement with Wireless Matrix Corporation, the City is implementing the FleetOutlook Silver service for GPS tracking and deploying Wireless Matrix devices, providing integrated GPS and wireless data communications. “GPS vehicle tracking solutions can significantly reduce operating costs and improve efficiency for our utilities department,” said Patrick Crumley Sr., GIS analyst for the City of Columbus Department of Public Utilities. Through GPS deployment, the department expects to reduce fuel, maintenance, and operating costs; decrease excess speeds driven; and improve response time and customer service. It may also result in a “greener” fleet operation and help boost fleet safety, according to Crumley.

March/April 2011

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See what’s in store for propane autogas. At the NTEA Work Truck Show, we’re showcasing new products and technologies that are reshaping the industry. You also can learn the latest on R&D, safety, and training — straight from the experts. Visit the Propane Education & Research Council Booth 5085 or www.autogasusa.org/NTEA. And discover how propane autogas is taking innovation to the limit.

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2/23/11 2:03:32 PM 2/10/11 2:02:54 PM

GET ON BOARD WITH CHEVIN FLEET SOLUTIONS, THE BIGGEST NAME IN FLEET MANAGEMENT SOFTWARE Whether you’re 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 you’re 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.

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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. You’ll be able to manage sustainability initiatives and monitor alternative fuel usage and emissions outputs.

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If you’re 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 you’re 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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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. You’ll achieve organizationwide 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) 793-0788 email: sales@chevinﬂeet.com or visit:www.chevinﬂeet.com

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BOOSTING M

CAN HELP IM PRO Strong leadership and understanding, combined with a little creativity, can help keep productivity and employee morale high when resources are low. BY GRACE L. SUIZO

happy staff is a productive staff. Thus, keeping employee morale up should be a high priority for any fleet manager. Public sector fleets, in particular, have been challenged with the task of coming up with creative — and more importantly, inexpensive — ways to ensure team productivity remains high even when budgets are low. Fleet managers from among the top public sector fleets in the country prove it doesn’t take much more than strong leadership, effective communication, and a little recognition to keep operations running smoothly.

LEVERAGE THE ‘LIMELIGHT’

AT A GLANCE Boosting employee morale can positively contribute to the overall fleet operations. Several methods of keeping staff motivated include: • Recognizing achievements. • Communicating frequently. • Asking for staff input. • Rewarding employees with simple prizes and food. • Providing a comfortable work environment.

Government Fleet

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No employee in their right mind would probably ever turn down a raise, but it doesn’t necessarily mean they need a financial incentive to do their job well. According to Kelly Reagan, fleet administrator for the City of Columbus, Ohio, “The most effective people are not really motivated by money. People are motivated by recognition. In other words, get out of your office, go see men on the floor, thank them personally, and let them know how much you appreciate their hard work.” Columbus’ fleet staff of 130 (84 of which are technicians) holds more than 475 ASE certifications, 46 Master ASE certifications, 89 EVT certifications, and seven Master EVT certifications. Employees were recognized in the November/December 2010 issue of GF and were paid a visit by the chief of staff and city council members, who shook their hands, expressed their appreciation of the hard work they do for the City, and posed for a group photo. “We’re talking about mechanics on the floor meeting with the chief of staff and the mayor. It’s huge. I get more out of that than I do writing them a check for $1,000,” Reagan said.

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NG MORALE IM PROVE OPERATIONS The City of Troy, Mich., which earned the top spot in the 2010 “100 Best Fleets” program, has also gained recognition from City officials. Once the fleet was recognized as a top fleet, Fleet Superintendent Sam Lamerato bought uniform polo shirts and had them embroidered with the 100 Best Fleet logo on the chests and patches on the sleeves. Decked out in their new shirts, the staff attended a council meeting and was recognized. “All the people in our fleet who could make it that night marched up to the front, introduced themselves, and shared their number of years of service. The council stood up and applauded them, as well as the audience,” Lamerato recalled. As “icing on the cake,” the staff even received a letter from state senators recognizing them as a top fleet. “I made sure each one of those individuals got a copy,” Lamerato said. Paul Condran, equipment maintenance manager at the City of Culver City, Calif., also makes sure his staff gets attention from City leaders. In addition to three paid days off and/or $500, Condran puts the “Employee of the Year” in front of the City Council and the City Civil Service Commission. “I write a nice letter, and the program has been so well received that our HR department has modeled it for other City departments,” Condran said. “Employee of the Quarter” is another program in place at Culver City, with the employee receiving one paid day off instead of three. Employee of the Year recipients also have their name engraved on a brass name plate featured on a plaque, with photos of the current winners of the quarter on a display board. Many fleet employees at Palm Beach

County, Fla., have managed to impress leadership outside the shop as well. According to Doug Weichman, director of fleet management, his employees have received as much as $2,500 from the annual Golden Palm Award promoted by the county administrator. The program rewards County employees for innovative ideas, going above and beyond, cost savings, and dedication. Receiving attention on special days, such as birthdays, is also a pleasant surprise for staff that shouldn’t be overlooked. Greetings cards, personalized photos, and even just an announcement on the bulletin board are all simple gestures fleet managers do that help brighten an employee’s day and give him or her that extra lift to perform better.

‘FEED’ THEIR EGOS One of the most popular and relatively simple staff-pleasers cited by fleet managers is food. “Food is easy. It’s always kind of the glue that keeps people together. [A meal] is a good forum to bring people together,” said Rick Longobart, facilities and fleet manager for the City of Santa Ana, Calif. At Santa Ana, fleet gets together for a “breakfast with the boss.” Supervisor administrative staff brings breakfast food and everyone gets together and discusses a lighthearted issue. Culver City prefers to do lunch. Condran started a program late last year called “Toss with the Boss.” Once a month, he spends two planned lunch hours with his employees. “The idea is you can ‘toss it’ around with the boss, talk about whatever’s on your mind, ask any questions — whether it’s work-related or football

or family. No good guys, no bad guys… no preconceived notions or ideas. It’s an open forum. I’ve had four meetings now and my lunchroom is packed.” At the end of lunch, employees draw a number from a bag, and winners get a small prize such as a thermos, a hat and t-shirt, or a pen and pencil set. Condran supplies the prizes, which may be gifts he’s attained or items he buys. “It’s been very successful — something so simple. It keeps me in the view of my staff, and it’s good for me, too. And it forces me to make sure I’m on the shop floor with my teams and they get to see me and spend time with me because we’re always so busy.” The City of Moline, Ill.’s fleet also tries to squeeze in time to get together, especially for holidays. Fleet Manager J.D. Schulte gathers the team several times a year to share meals between shifts since oftentimes they only get a few minutes to communicate in passing. “Around the holidays, we’ll try to set up a time when we split up what we’re going to buy and have a little cookout and get together. We’ve done Thanksgiving meals in the past. It’s just a good way to get together and have everybody socialize and not make every conversation we have about work.” With fleet managers supplying the food, employees get a chance to experience the appreciation first-hand. The City of Troy does a potluck luncheon and everyone brings their favorite dishes. Lamerato usually brings the main dish. “We talk and we laugh. We talk about the good times and obviously we talk about some of the bad times. You make light of the bad times and you try Government Fleet

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March/April 2011

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MORALE

Culver City, Calif., has Employee of the Year and Employee of the Quarter programs for its staff. Employees of the Quarter have their photos displayed on a plaque, along with the names of each year’s annual winners.

to think about more of the good times. I think that’s important. When you don’t have surplus funding, you get creative.” Larry Campbell, fleet manager for the City of Fort Wayne, Ind., finds food a great morale booster for his staff. In addition to “Donut Day” every Friday, after battling a recent snow emergency requiring 12-hour shifts, Campbell bought pizza for his guys. “After it’s all over with, we just want to be able to say thank you. We know it’s snowing and everyone’s tired, but they can at least take their lunch break and enjoy some pizza. Just to help boost the morale.” Even better than having the boss buy food for the staff is when they actually cook it, too. In the summer, Campbell said management cooks for the staff. “We try to do that a couple times. We don’t get to do that enough. In those situations, we usually cover the cost of the meat and do carry-ins. The guys request baked goods from my wife for that event. You’d be amazed. It’s just something that simple…the little things.” Palm Beach County Fleet Management Division also hosts an Annual Employee Appreciation Luncheon where the management team cooks lunch for the employees to thank them for all their efforts during the past year. “Individual praise and thanking employees is part of the management team philosophy,” Weichman said. And when food comes unexpectedly, it’s also a special treat for staff. One of the City of Troy’s customers whose truck had been repaired came back an hour and a half later with donuts for the staff. “It 16

Government Fleet

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City of Moline, Ill., Fleet Manager J.D. Schulte (bottom right) empowers his employees to make decisions that impact their workload and environment. Their experience ranges from 10-30 years.

didn’t cost us anything, but it was a pickup for the guys. It puts a smile on their faces,” said Lamerato.

INVEST IN YOUR STAFF Training should remain a primary component of the fleet operation, said Reagan of Columbus. “When one is training, then one is investing in their people. That bodes well for the organization as well as the employee. It boosts morale in that a guy gets the time off from the floor and spends time learning something new. They realize the [organization] is investing in them because they care about them, and they want them to be the best at their vocation.” While pay increases are not an option for many these days, some fleets are able to offer a small monetary incentive for employees who advance in their profession. The City of Troy has an ASE program in place that provides certified technicians a monthly $100 certification stipend for a total of $1,200 per year. Palm Beach County offers ASEcertified employees an extra $8 per pay period (26 pay periods per year) for each certification. According to Weichman, the County now has many master technicians under the ASE program and some with 30-plus certifications earning more than an additional $6,000 per year. “The knowledge they achieve to get these certifications normally makes them better at their job, more efficient, and they take great pride in this, which is all management tries to achieve. And

it keeps productivity and morale up.” Management employees also get paid to get certified, which established a high level of competency and pride. The County currently has seven CAFMs and one CEM working in management within the Division. Polk County, Fla., has also had an incentive program in place for 12 years that adds to employee salaries for each ASE and EVT certification attained, according to Bob Stanton, director of Polk County Fleet Management. Palm Beach County also provides staff the opportunity, when available, to work at the next level in the organization. “Over the past five years, every promotion was pretty much done from in-house so employees know they have a career path if they apply themselves and are positive and productive,” said Weichman. The County schedules and pays for job-related training and certifications and also reimburses employees to continue their formal education. One County technician was able to progress through an informal mentoring program and was promoted three times; he is currently working in management. He also earned a bachelor’s degree in public administration and is working on his master’s. With a 25-percent cut throughout the City in all professional development, Moline’s staff has had to become more creative in how it does some of its training. The fleet facility has a large training room that can house 20-25 technicians and has been used as a training

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MORALE

Fleet staff at Palm Beach County, Fla., hold more than 30 ASE certifications, seven CAFM designations, and one CEM.

The City of Santa Ana, Calif., recognizes the value of its employees’ ideas and encourages feedback through an Innovation Incentive Program.

venue for a number of vendors. In ex- clean, safe, and pleasant, people will change, Moline’s fleet staff receives want to work better for you and for each training free of charge. One vendor other,” said Condran of Culver City, requested to use the facility for another which has a productivity goal of 74-perclass because it helped raise attendance. cent wrench time throughout the year. “They said a lot of times they can’t get “We’ve been able to capture higher than folks from a national tire store to go to what the industry standard says because a class at another tire store for training we have a high productivity standard.” because they consider them competi- The City has an attendance program that tors,” said Schulte. “We’re the city, and rewards employees who go six months everybody I guess feels welcome here, without any unexcused absences. They get a $75 gift card, lunch with and no one feels we’re a comCondran, and become eligible petitive vendor.” for Employee of the Year. As a result, the Moline fleet “We try to make it where has been able to capitalize on it’s fun to come to work,” said technical training. Schulte said Campbell of Fort Wayne. “Part the response from his staff has of that is keeping a clean facility. been great. “They know we all If you don’t keep a clean facility, had to absorb budget cuts, so it’s you see the morale go down. It nice that each technician avergives them a brighter outlook.” aged 88 hours of professional CAMPBELL development for the year. So Besides keeping the facilthey didn’t see a major cut; it’s just that ity clean, he also stressed the importance they’re doing a little bit more training of keeping it up to standards. “It takes a in-house than off-site.” beating, especially with the type of equipment that we have coming in and out. If you work in a drab area, it does lower the PROVIDE A COMFORTABLE morale. A fresh paint coat goes a long way. ENVIRONMENT With so many hours of the day spent You’d be surprised what sunshine does for on the job, employees should feel com- morale, too.” The department recently replaced its windows because wind was getfortable while at work. “Sometimes it’s not necessarily all ting through. “That made a big difference. about the money, but the environment There was a big boost of morale,” he said. Schulte of Moline said his department they work in,” according to Longobart of Santa Ana. “So you can certainly moti- has tried to make working third shifts a vate them by giving them a good environ- little more desirable. For the past three ment to work in, and a good environment years, third-shift workers do four 10-hour to work in doesn’t necessarily have to be days, so they work four nights a week instead of five. “That seems to make a big a $20 million facility.” “If people are coming to work more difference for them. It’s been very well often than not, if people are happy while received because there aren’t a whole they’re here more often than not, and if lot of things to make it exciting to work you provide a work environment that’s nights,” he said. 18

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The City of Troy, Mich., earned the No. 1 spot in the “100 Best Fleets” program in 2010. Several technicians have been employed 25 years.

EMPOWER EMPLOYEES Many technicians take pride in their craft, often spending a long career in the shop building up years of experience. Now in his 21st year with the City of Moline, Schulte said two of his eight technicians have been employed longer than him — one with 30 years under his belt and another with 24. Only one is not ASE certified. “Our folks here in the shop definitely know they’re decision makers. My philosophy is just to turn them loose and let them make these kinds of decisions that impact their workload and their environment, and they consult me when needed.” Schulte himself started as a technician before moving to the office setting in 2001. “When I was on the shop floor, I liked the feeling of being in control of some of the work and I remember how valued I felt because of that, so I’ve tried to give that same kind of empowerment to these guys.” Lamerato of Troy, a 29-year fleet manager who also worked his way up from the shop floor, has a couple of technicians in his 15-member staff that have been around for a few decades. Lamerato encourages his staff to provide input on equipment for the shop. In March, he plans to take some staff to a tool show. “It’s on a Saturday — they go on their own time — but we go around as a group to a huge tool show warehouse and we end up buying $6,000-$8,000 worth of tools for the shop. We use their input to tell us what we need to do our job more efficiently. For them to tell me what tool they will use to do their job more efficiently makes more sense to me. It’s them taking ownership of that tool to make sure that tool is used properly as well.” Campbell at the City of Fort Wayne

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MORALE

2011 marks the City of Columbus’ (Ohio) fourth straight year to earn the ASE Blue Seal. It is the largest Blue Seal municipality in the U.S.

also requests input from his staff regarding shop equipment. “If there’s a tool out there that can make their job easier or faster, or more efficient, we purchase that. That makes a big difference.” Some employees requested additional safety equipment, which Campbell agreed to as long as there was enough in the budget. “They’re more at ease with their job because of that,” he explained. Enabling staff to engage in any type of decision-making is ideal for enhancing their commitment to the team and to their performance. Culver City has developed a peerto-peer award program. “Basically it’s an award given by one employee to another; I have nothing to do with it,” said Condran. Employees who collect six peer-to-peers receive a $75 American Express gift card, along with their choice of a division jacket or hat. The idea was suggested by one of the technicians, whose wife had a boss-to-peer award at her work. Condran wanted to leave himself out of it, so they came up with the peer-to-peer concept. Santa Ana also values employee input and created an Innovation Incentive Program that rewards employees for coming up with good ideas for the fleet. A protocol was developed STANTON to ensure the idea makes it up the chain of command and doesn’t get lost by an immediate supervisor along the way to management. Employees are recognized and thanked for putting forth the effort to produce an idea. If management feels the idea is valuable enough to implement, a committee discusses and reviews it further, and if it is implemented, it raises the stake of 20

Government Fleet

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how the employee would be recognized. If any monetary savings were met, the employee would get something tangible like a gift card or hat or shirt, as opposed to just a memo. “That way, it gives that person the confidence that if they come up with a good idea, it doesn’t get squished…and it continues to foster good ideas from the organization, which could save money or even time or just efficiencies,” said Longobart.

KEEP COMMUNICATION OPEN Communicating openly and honestly and promoting teamwork can help build a strong team culture and keep employee spirits high. “There’s no such thing as bad communication; there’s only lack of communication,” said Condran of Culver City. “If people are left to wonder about things, that’s how the rumor mill gets churned up and that can really break down morale.” At Culver City, a “read” board is on display next to the employee time clock, and everyone is expected to read it when they get into work each day to make sure they’re up to date on any important information. “I try to do our meetings on Friday just because if there’s something on their mind, I don’t want them mulling over it the whole weekend,” said Lamerato of Troy. “Get it out in the open, get it on the table, and discuss it. There’s no hurt feelings. If an employee is having a tough time at home trying to make a decision that’s affecting his home life as well, he brings that to work with him.” Lamerato encourages staff to watch city council meetings, get on the Web, and get the facts about what’s going in the City.

City of Troy, Mich., technicians wear uniforms with patches identifying them as the No. 1 fleet in the 2010 “100 Best Fleets” program.

“They hear horrible things happening with other departments. We try to counter all that negativity with facts.” In addition to weekly meetings, fleets also communicate via e-mail and newsletters. With 11 satellite operations, Polk County also uses Go to Meeting, a Web conference and online meeting service. The City of Santa Ana uses a Facebooklike business application called Rypple, a web-based software designed to help keep teams on track. According to Longobart, “it breaks down the silos and barriers of communication.” Each staff member has a profile and can communicate and give feedback to one another. It also helps track each individual’s progress on projects. As the manager, Longobart can track staff progress throughout the calendar year. Messages can also be sent from Rypple to any e-mail recipient even if they are not signed on to the application.

BE AN EFFECTIVE LEADER As a former technician, Schulte of Moline sees his role as fleet manager as an opportunity to lead by example. Schulte is an ASE Master Auto and ASE Master Truck technician and continues to keep his certifications up. “A lot of the guys in the shop tell me they like the fact that I keep all my certification stuff on the board along with the other technicians. One of the technicians said, ‘That way, when people come in here they still know where you came from and that you’re one of us.’ So I thought, if those guys are recognizing it, then I still make sure I go in every five years and get myself recertified because it means something to them.”

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Lamerato also strives to uphold expectations from his staff and expects 100 percent from them. “I tell my employees, I’m going to stay here as long as it takes to get the job done, and we’re going to get it done in the most efficient way possible.” He also tries to stay positive. “The fleet manager needs to come to work with a positive attitude. If you’ve had a rough day, don’t let it spread to your division.” According to Stanton at Polk County, fleet managers must be multi-dimensional. “Don’t make the mistake of thinking just a working knowledge of vehicle maintenance is the path to success; that alone is indeed the path to failure. Fleet managers must know finance, interpersonal relations, be confident in both topdown and bottom-up communications, entrepreneurial, and above all, be a servant leader to their staff. The more wellrounded, the better,” he said. Showing your staff respect should also be a top priority. “Treat them with respect and how you would want to be treated.

Look at it this way: There’s not one of us who is strong in every area. Out of the 26, we’re very strong because of all the different talents,” said Campbell of Fort Wayne. Condran of Culver City shares the same attitude. “We have different jobs, different levels of responsibility, but at the end of the day, like I tell them, this does not say ‘Paul Condran’s Fleet Department.’ This says the ‘City of Culver City.’ We can’t ever lose sight of that, and that fact becomes our priority and our opportunity to shine.” Most importantly, fleet managers must possess strong listening skills. “That is the hardest thing,” said Longobart. Being able to “actually [listen] to someone without in your mind trying to come up with an answer before they’re even done talking is hard to overcome. Empathy, listening, communication, understanding, and concise information as to what you’re trying to achieve are all key successes to becoming a good manager in this type of industry.” Maintaining an open-door policy has

helped Reagan eliminate grievances per annum at the City of Columbus. “Management doesn’t have to like what [employees] have to say, but they do have to listen because every employee has a voice. My door always remains open. That is what we live by from the management standpoint so that we always have open dialogue between the labor and management,” he said. “By doing that, it’s creating a wonderful relationship. We work together to complete the task and just keep the vehicles in good repair and treat folks well.” SOURCES • Larry Campbell, CPFP, fleet manager, City of Fort Wayne, Ind. E-mail: larry.campbell@ci.ft-wayne.in.us • Paul Condran, equipment maintenance manager, City of Culver City, Calif. E-mail: paul.condran@culvercity.org • Sam Lamerato, CPFP, fleet superintendent, City of Troy. Mich. E-mail: lameratosp@troymi.gov • Rick Longobart, facilities and fleet manager, City of Santa Ana, Calif. E-mail: RLongobart@santa-ana.org • Kelly Reagan, fleet administrator, City of Columbus, Ohio. E-mail: KWReagan@columbus.gov • J.D. Schulte, CPFP, fleet manager, City of Moline, Ill. E-mail: jschulte@moline.il.us • Bob Stanton, CPM, CPFP, director, Polk County (Fla.) Fleet Management. E-mail: BobStanton@polk-county.net • Doug Weichman, CAFM, director of fleet management, Palm Beach County, Fla. E-mail: dweichma@pbcgov.org

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Government Fleet

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March/April 2011

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LEVERAGING PROCUREMENT DOLLARS IN A ZERO-GROWTH BUDGET ENVIRONMENT Public sector fleet manager creativity is one key to “getting the most bang for the buck” in a time of tightening purse strings and unpredictable fuel prices. BY STEPHEN BENNETT hether one calls it “leveraging procurement dollars in a zero-growth budget environment” or simply “getting the most bang for the buck,” it amounts to much of the same thing: Government fleet manag-

ers are dealing with budgets that have stayed the same over the past few years or more — if they’ve been lucky. Just as likely, they’ve seen budgets cut and have been left to puzzle over what they really need to procure and what they can do without.

AT A GLANCE

INCREASING COST PREDICTABILITY

When faced with leveraging procurement dollars in a zero-growth environment, some actions include: • Increase cost predictability through a custom-made spreadsheet. • Downsize to four-cylinder sedans to allow for the purchase of an additional vehicle. • Shift aged vehicles to user departments that are expected to use them less. • Adjust procurement priorities to the most necessary vehicles.

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Dennis Hogan, fleet services manager for the City of Cedar Rapids, Iowa, uses a Microsoft Excel spreadsheet program he developed at his previous job to track vehicles and parts. “I use it to help me identify the most costly pieces,” Hogan said, and to compare his vehicle and equipment replacement forecasts to dollars in the procurement budget.

The fact that the City fleet has been increasingly standardized year-overyear for the past three or four years is an advantage, Hogan added. “A City pickup truck is a City pickup truck regardless of the department,” he said. That adds to predictability of replacement costs at a time when budgets cannot necessarily be predictable one year to the next. The Cedar Rapids City fleet has fared better than some in that the procurement budget has held steady for the past three fiscal years: $2 million on the general fund side, which is for the Department of Public Works and the police department; and $1.2 million for the City’s utility fleet, according to Hogan. The formulas Hogan worked out for the spreadsheet program help him take

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‘MAKING DO’ WITH WHAT YOU HAVE Stephen Andrews, fleet manager, City of Kettering, Ohio, said that in each of the past three fiscal years, the procurement budget required him to scale back his replacement plans. For example, the fleet recently needed nine sedans but could only purchase five. “At this point, we’re just limping along with older vehicles,” Andrews said. Aged vehicles that would have been cycled out of the fleet are sometimes shifted to different departments where it is expected they will be used more gently or used less. By doing this, fleets hope vehicles will last longer and that the shift will reduce increases in op24

Government Fleet

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©ISTOCKPHOTO.COM/DRA_SCHWARTZ

into consideration what the department can afford versus what must be done to minimize operating costs, enabling informed judgments when creating a “true needs list,” he said. A certain vehicle or piece might be in the top spot on his wish list, he noted, but the spreadsheet program might show a different decision that will have a more positive effect on the operating budget. When vehicles and equipment are kept in service beyond their usual service life, operating and maintenance costs can be expected to increase, which affects user departments, not just the fleet department. As an internal service fund, the fleet must charge those user departments more to reflect the increased costs, Hogan noted. To monitor vehicle and equipment costs, Hogan’s replacement plan assigns each piece to a class and creates an average for that class. The spreadsheet weighs total fuel consumption, average miles per gallon, and odometer readings for each piece. If a vehicle or piece of equipment exceeds the average for its class, then the spreadsheet program adds a weighted factor so Hogan can identify it for replacement. In the past three years, the average life of the fleet’s 800 rolling vehicles, from sedans to large trucks, dropped from the previous average of about 22 years to 16 or 17 years, Hogan said. His goal is to eventually reduce the average to 12 years.

To squeeze the most out of the City’s procurement budget, the City of Kettering, Ohio, switched to four-cylinder Ford Fusions for City staff, saving $4,000 per vehicle compared to previous models, which enabled the purchase of one additional vehicle.

erating and maintenance costs to some degree. Andrews said his department skips some end-of-life work. “We won’t do major repairs,” he said. Instead, an older vehicle will be substituted. He said the number of cars in the motor pool has dropped from eight down to seven. “‘Making do’ is the best way I can put it,” Andrews said. To squeeze the most out of the procurement budget, the fleet opted to switch to a four-cylinder Ford Fusion for City staff. That saved $4,000 per vehicle and enabled the purchase of one more vehicle, Andrews said. “It’s a bit smaller, so if you’re transporting people to a meeting it might be a bit crowded, but it’s a minor inconvenience,” he noted.

PRIORITIZING PROCUREMENT Warren Patrick, fleet manager for Harford County, Md., said the word he would use to describe the procurement budget is “emaciated.” Increased fuel costs, and fluctuations in same, are a wild card. Current spending on fuel is at $4.3 million on an annualized basis, Patrick said, while spending on maintenance is at $1.8 million on an annualized basis. That level of spending on maintenance represents an increase of $460,000 from the amount two years ago, he noted. The fleet replaced “a lot” of equipment in the 2008 fiscal year — “We had a lot of money,” Patrick said. However,

in each fiscal year since the procurement budget has decreased, and Patrick said he expects it to decrease again in the 2012 budget. With what is left, the fleet’s procurement priorities have been public safety and snow removal equipment, Patrick said. The County operates 72 5-ton dump trucks. “Every year, we should buy eight,” to replace those that should be cycled out, Patrick said, with each unit costing approximately $130,000. With the most recent budget, he was able to purchase three dump trucks. The wild card — fuel expenditures — sometimes works out in Patrick’s favor toward the end of the fiscal year, he commented. If there is money left over in that budget line, he uses it to purchase new vehicles. However, the vehicles and equipment that should be replaced at the moment, by his reckoning, total 200 pieces and would cost approximately $6.5 million. Despite the tight budget situation, Patrick said he believed economic indicators signal better times ahead, and he observed that the County is on sound fiscal footing and just received a tripleA bond rating. “I’m optimistic,” he said. “I’m positive.” SOURCES • Stephen Andrews, fleet manager, City of Kettering, Ohio. E-mail: Stephen.Andrews@ketteringoh.org • Dennis Hogan, fleet services manager, City of Cedar Rapids, Iowa. E-mail: D.Hogan@cedar-rapids.org • Warren Patrick, fleet manager, Harford County, Md. E-mail: wrpatrick@harfordcountymd.gov

March/April 2011

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BE PART OF THE

SOLUTION,

NOT PART OF THE

PROBLEM

As public sector fleets face increasing scrutiny, fleet management must keep the public and officials informed, ensure competitive service costs, and maintain customer service levels while reducing costs. BY MIKE ANTICH

ith the decline in tax revenues, public sector fleets are increasingly scrutinized by management, politicians, and taxpayers. At one time, there was anonymity in being a public sector fleet manager — no more. Years ago, fleet was not high on the radar screen. However, fleet is now dead-center on the radar screen of senior management. In this environment, fleet managers are constantly second-guessed by citizens, politicians, and user departments on the efficacy of their policies. The sad reality is that these senior managers and politicians think they understand fleet, but really don’t. Fleet managers are constantly dealing with the newly elected “fleet expert” politician who assumes their fleet is not run efficiently or cost-effectively. After every election, a fleet manager’s expertise is questioned by newly elected officials who are going to “fix” fleet operations. Consequently, fleet managers spend hundreds of hours of labor proving they are fiscally responsible, sometimes to no avail. Even using industry-accepted benchmarking to quantify performance, some politicians continue to assume taxpayer dollars are being wasted. The scrutiny on state and municipal fleet managers isn’t just coming from elected officials and taxpayers; it is also

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internal user departments. In an era of reduced revenues and the need for acrossthe-board budget cuts, there is growing competition for limited resources between user departments, with fleet in the middle. Elected officials are similarly being squeezed by lower sales and property tax revenue. They are looking at every opportunity to continue to provide the services and service levels constituents have become accustomed to receiving. Some elected officials have decided on short-term sacrifices of internal services (fleet is an easy target) in order to support short-term constituent services by choosing to outsource more vehicle maintenance and repairs to “lowerpriced” private sector vendors.

A SILVER LINING TO TODAY’S FISCAL ENVIRONMENT The tax revenue crunch is forcing governments to do a bottom-up evaluation of all services. With revenues down, budgets must still be balanced by law, which means certain services must be reduced. In the minds of some elected officials, it’s easy to cut support services, such as those provided by fleet operations. The consensus among fleet managers is that there will be more outsourcing of work due to budget cutbacks. As a result, outsourcing will continue to be an ongoing and recur-

ring topic for public sector fleets. As city, county, and state governments continue to develop financing strategies and look more closely at “what things cost,” fleet managers will see a bigger push to outsource services historically performed in-house. With the heightened possibility of more managed competition, the level of service provided by your fleet needs to be at the lowest cost with the data to prove competitiveness — not just with neighboring fleets, but also with private sector service providers. As fleet manager, you must know the exact cost of your fleet and be able to present it to your management at any time. In a micro-managed climate, fleet managers also need to do a better job educating elected officials and taxpayers that fleet management is a very complicated profession, requiring expertise in a multitude of areas. The challenge will be for fleet managers to maintain customer service level objectives while cutting costs. One silver lining to the current fiscal environment is that difficult economic times allow for wringing out the previously hard-to-remove waste. This presents a great opportunity for fleet managers. It allows them to be perceived by politicians and senior managers as “part of the solution” and not “part of the problem.”

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©ISTOCKPHOTO.COM/NIKADA

A ‘STATE OF THE FLEET’ REPORT CAN ENHANCE FLEET IMAGE Fleet managers can use an annual fleet report to inform decision-makers who impact funding, user departments, and fleet employees about both fleet management accomplishments and challenges. BY GARY HATFIELD

round the beginning of each year, the President of the United States gives his annual “State of the Union” address to tell the country how we are doing. Likewise, companies and government agencies look at the past calendar or budget year to produce an annual report

AT A GLANCE When writing a fleet report, keep in mind: • Don’t assume the audience knows about fleet, and explain numbers presented. • Explain events and factors that affected fleet performance over the past year. • Include items that may be obvious to the fleet manager, but not to others. • Work with a graphic designer or marketing/PR to ensure a professional look. • Keep it short, and use charts and graphs. 28

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to tell those with a vested interest what significant financial and operational activities took place. Similarly, it makes sense for fleet managers to develop an annual “State of the Fleet” report to inform management and employees about what took place in the past 12 months that could impact the fleet organization’s ability to operate effectively and efficiently in the future. A shortcoming we often observe when conducting fleet operations reviews is that the fleet manager is too passive about “tooting his or her own horn.” Many folks in this industry tend to be modest and hardworking — and far too hesitant about seeming to boast about their accomplishments. But this is an opportunity lost, and we need to get over such modesty and tell those who may impact our ability to fund our operation, and vehicle user groups who see only their part

of the fleet picture, how and why we have done a good job. In addition, fleet employees deserve to see key operational metrics to better understand the challenges faced by fleet management that might impact their lives and their jobs. For example, less work might mean layoffs, and more work might mean overtime or increased outsourcing.

SHOWCASING ACCOMPLISHMENTS An annual State of the Fleet report is fleet’s opportunity to showcase the organization’s accomplishments and enhance its image as an important contributor to the overall success of the government agency or company. Rather than boasting, it represents sound and smart business communication, a chance to tell the “fleet story” and lay a foundation for a budget submission or strategic changes to the program, such

March/April 2011

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ANNUAL FLEET REPORT WHAT TO INCLUDE IN A STATE OF THE FLEET REPORT

©ISTOCKPHOTO.COM/KINGWU

Appearance counts, so strive to give the report a professional look.

as greater use of alternative fuels and how that will be implemented.

WRITING THE FIRST REPORT Once a fleet manager decides a State of the Fleet report is a good idea, how does he or she begin? Let’s get right to the point with some suggestions. First, decide who will view the report. Certainly the person to whom the fleet manager reports would be highly interested, but others up the management chain may also want to see it. Fleet employees will certainly want to see it, but will it become public information? If so, design it for those who may not understand fleet operations but need to know key facts. Keep in mind that those outside the fleet profession are often unaware of most aspects of fleet costs and activities because they don’t understand the science of fleet management. Indeed, fleet management may have to explain the significance of the numbers it presents. The rule is this: Be aware of the audience, and don’t assume they understand the meaning or significance of the fleet facts the report presents. Next, create the overall plan for the report. Consider beginning with a brief narrative describing events and factors that affected the organization’s performance during the past year. For example, did fuel costs rise unexpectedly? Did a severe winter drive up costs? Also describe factors that may affect future fleet operation performance, such as pending legislation or the introduction of GPS tracking systems. Appearance counts, so strive to give it a professional look; get help from a graphic 30

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ere are 20 specific suggestions for an annual State of the Fleet report: 1. Count of fleet units broken out by vehicles (cars and trucks), mobile construction equipment and trailers, and miscellaneous assets. 2. Percentage of vehicles (cars and trucks) that are hybrids or capable of operating on alternative fuels. 3. Year-end average fleet age in years for both mileage- and hourly-based vehicles. 4. Total annual miles driven for entire mileage-based fleet. 5. Total annual hours used for entire hourly fleet. 6. Count of underutilized vehicles to show the number of vehicles that failed to meet minimum utilization goals. 7. Population or number of customers served per vehicle. 8. Ratio of employees to vehicles. 9. Total annual capital expenditures for

designer (or an internal marketing or public relations office) if necessary. Some choose to use Microsoft PowerPoint to write the report so it can be used for live presentations, as hard copy, or sent via e-mail. Finally, decide what is important to communicate. A good place to start is by asking: “Why did costs go up, or down, or stay the same?” While some factors that affect cost may seem obvious to the fleet manager, to many others they are unknowns that impact the bottom line. Fleet managers should communicate basic information including the size and age of the fleet; utilization; fuel consumption and cost; labor, parts, and overhead cost; and the impact of regulatory requirements. Charts or graphs “track and look back” and are almost always more effective to display data over a multi-year period than tables full of numbers. Try to make them colorful and interesting. Locate and use known standards for comparison purposes. For example, the report can compare annual change in total fleet cost over several years to changes in the Consumer Price Index or the IRS business mileage rate over the same period. If fleet management already tracks some key performance measures, it al-

replacement vehicles. 10. Total annual capital expenditures for additional vehicles. 11. Total annual maintenance cost. 12. Percentage of maintenance cost outsourced. 13. Cost comparison of: • Planned maintenance. • Unscheduled repairs. • Accident and abuse repairs. • Vehicle modifications. 14. Total gallons of fuel consumed by type of fuel. 15. Total cost of fuel (and/or average cost per gallon by fuel type). 16. Customer satisfaction survey rating. 17. Employee safety (e.g. number of employee injuries). 18. Driver safety (number of accidents). 19. Business use of personal vehicles (reimbursement cost). 20. Personal use of business vehicles (commuting cost).

ready has a great start — just be sure to track performance consistently year over year. Otherwise, trends have little meaning, so define performance measures carefully and establish documented formulas for calculating results. Keep the report short enough to retain the reader/viewer’s attention but long enough to explain the facts that impact costs and operational success.

TELL THE FLEET STORY An annual State of the Fleet report is meant to tell an important story. It enables the fleet manager to proactively get the message out instead of becoming defensive in response to budgetary questions. Those who control the money in most organizations love to see numbers and graphs showing historical trends and future projections. Measures that consistently have meaning and value from year to year can be tremendous aids to support fleet funding requests and to enhance a fleet manager’s professional image. ABOUT THE AUTHOR Gary Hatfield is director of Public Fleet Consulting Services at Mercury Associates, Inc. He can be reached at ghatfield@mercury-assoc.com.

March/April 2011

2/23/11 2:09:56 PM

GF1110fordhigherlevel.

A higher level.

That’s what you get with Ford gas engines and transmissions. A higher build level means you’re getting engine and transmission assemblies built to the exacting speciﬁcations of Ford Motor Company. So you not only get the quality build you expect in an assembly from Ford, but also one that’s built by using parts that keep it speciﬁc to year, make and model as well as emissions calibrations.

Introducing the all-new 3-Year Unlimited-Mile Warranty – No Commercial Exceptions Ford gasoline engines and transmissions are covered by a three-year/unlimited-mile warranty.* All warranties are backed by Ford Motor Company. They’re also supported by more than 3,500 Ford and Lincoln Mercury Dealerships nationwide as well as at their originating place of service. Plus, unlike some competitors, the warranty is good for ﬂeet vehicles. That means you get the same advantages and coverage for commercial use, no exceptions. For technical questions, contact the Powertrain Assistance Center at 1-800-392-7946 or visit FordParts.com. *See dealer for limited-warranty details. Remanufactured diesel engines are covered by a two-year/unlimited-mileage warranty.

GF03_Report.indd 31 GF1110fordhigherlevel.indd 1

2/23/11 2:10:00 PM 10/7/10 11:20:39 AM

SOLUTIONS TO THE TOP CHALLENGES FACING PUBLIC SECTOR FLEETS

A group of Florida fleet professionals representing some of the top fleets in North America met to discuss the top 10 challenges facing public sector fleets and what they are doing to meet them.

AT A GLANCE Public sector fleet managers in Florida met to discuss solutions to the top challenges facing public sector fleets, including: • Zero-growth fleet budgets. • Relentless mandates for cost-cutting initiatives. • Difficulty maintaining aging assets. • Increased concern for staff burnout. • Unpredictability of future fuel prices and political pressure to expand green fleet initiatives. 32

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he cover story for the November/ December 2010 issue of Government Fleet magazine was about the Top 10 challenges facing public sector fleets in CY-2011. To find solutions to these pressing issues, a one-day meeting that included some of the “100 Best” fleet managers in North America was held Jan. 20 in Orlando, Fla. The meeting was primarily comprised of Florida fleet managers. The State of Florida is represented by 15 top 100 Best Fleets in North America for the 2010 competition, more than any other state. It is also represented by five of the Top 20 fleets, four of the No. 1 fleets in the past 10 years, and the 2009 Government Fleet Public Sector Fleet Manager of the Year, Doug Weichman, CAFM, from Palm Beach County. Weichman is currently the 2010 NAFA Fleet Management Association vice president. These fleet leaders gathered to combine their knowledge for solutions to help solve seemingly impossible problems they and other public fleet managers face. Their attitude was “there is no problem we can’t solve together.”

CHALLENGE: ZERO-GROWTH FLEET BUDGETS One way to compensate for a zerogrowth budget is to supplement it with grant monies.

Michael Brennan, fleet manager for Manatee County, Fla., (No. 9 Best Fleet in 2010) obtained a $15.9 million grant from the Federal Transit Administration. “We were somewhat shocked, but very pleased. Honestly, we’re hoping to get some of the requested funds awarded and continue to look for other funding opportunities,” said Brennan. Volusia County, Fla. (the No. 1 Best Fleet in 2007) was able to insource approximately $1.5 million in 2010 without additional staff or overtime. Sarasota County, Fla., Fleet Manager Greg Morris (No. 13 Best Fleet in 2010) said, “We are relentless in looking for ways to maximize productivity. Our labor costs are down 3 percent from last year. We use Six Sigma to develop meaningful measures, continuously analyze our data, and constantly look for ways to improve.” Sarasota County also insourced work from several cities and fi re departments, in addition to selling fuel to the sheriff’s department. According to Morris, the County’s philosophy on outsourcing is, “if someone else can do it cheaper, faster, and more reliable, we outsource the repair, i.e., engines, tires, towing, mowing, alignments, and windshields replacement/repairs.” Recently, Sarasota County completed a return on investment (ROI) for its parts

March/April 2011

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A group, primarily fleet professionals from Florida, met to discuss solutions to the top challenges facing public sector fleet managers.

room and contracted out for parts. The County also rebid all existing contracts and saved $1 million with that initiative. It also has strict service-level agreements with end-user customers. Weichman of Palm Beach County (No. 20 Best Fleet in 2010) outsources 20 percent of his fleet’s budget, saving hundreds of thousands of dollars per year. As Weichman stated, “It all comes down to time and productivity.”

CHALLENGE: RELENTLESS MANDATES FOR COST-CUTTING INITIATIVES Steve Riley, fleet director for the City of Coral Gables, Fla., designed an audit for public fleets that provides the ability to consider every aspect of an operation for efficiencies and helps counter privatization initiatives. He was able to save more than $450,000 in three months by performing a fleet audit, which led to a subsequent vehicle utilization study. A copy of Riley’s public fleet audit can be obtained at www.gfleet.com. Dan Croft, fleet management director for Collier County, Fla., another 100 Best Fleet, keeps totaled vehicles, especially ambulances and transit buses, for parts instead of sending them to the salvage yard as was previously practiced. He “cannibalized” more than $30,000 in parts and components from his last am-

Greg Morris, fleet manager for Sarasota County, Fla., showed his new fleet services dump truck to event attendees.

bulance to repair other units. “We were amazed when we started figuring out the savings, innovation, and new processes to help increase productivity,” said Croft.

CHALLENGE: DIFFICULTY MAINTAINING AGING ASSETS The 2010 NAFA Fleet Management Association award winner for creativity and innovation in the workplace, David Vasquez from SECO Energy (who was previously fleet manager for Lake County, Fla.), created a one-page vehicle justification model spreadsheet based on a NAFA lifecycle analysis. The justification model breaks down annual and lifetime costs (down to the cents per mile) and segregates the cost of business use versus commuting use. With just basic information, fleet managers can easily demonstrate the percentage of vehicle cost associated with commuting versus “real” business use. Vasquez used this calculator to reduce 110 dedicated assigned take-home vehicles to 18 in emergency management, code enforcement, and animal shelter for Lake County, saving $38,000 a month in commuting costs. Two other solutions offered by technology partners are to dispose of aging inventory through an online auction. This was demonstrated by Joe Lane, director of regional sales for Property-

Room.com, and Ben Bailey, regional account manager for Copart, both online auctions. An online auction also took place in Orlando at the Copart facility where the meeting was held and offered 489 vehicles to 445 online bidders in 24 countries. Of the vehicles auctioned, 27 percent were sold to overseas buyers. The online auction process handled pre-bid cataloguing, the actual auction, electronically collected resale proceeds, registrations, retitling, audit trails, and provided accurate accounting of assets and financial information. A department in New York City was able to improve its fleet resale proceeds by 400 percent using online remarketing.

CHALLENGE: INCREASED CONCERN FOR STAFF BURNOUT Morris of Sarasota County said his staff hasn’t had a salary increase in three years and new hiring is frozen. Personnel is its No. 1 cost. Employees agree having a job is “a good thing,” but Morris includes additional fun activities, such as a game called “Fish,” to keep morale high. Marilyn Rawlings, fleet manager for Lee County, Fla., (No. 1 fleet in 2004) has scavenger hunts and other fun activities to keep employees engaged. Bob Stanton, fleet management director for Polk County, Fla., (No. 3 fleet in Government Fleet

GF03_Issues.indd 33

March/April 2011

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CHALLENGES

Copart representatives pose for a group photo. (L-R) Yoker Vidal, regional account manager; Kevin Parker, VP of southern operations; Donna Stern, general manager; and Ben Bailey, regional account manager.

2010) gave his employees an engagement survey based on 1 million employees to find out what motivates them to peak performance. He has an open-door policy and agrees with the concept “the only reform needed is a plan to remove obstacles to innovation,” and he welcomes strong ideas for improvement.” Fleet professionals can share their input regarding employee job satisfaction

Michael Brennan, fleet manager for Manatee County, Fla., was able to obtain a $15.9 million grant from the Federal Transit Administration.

through an online survey. The survey is conducted by the Gallup Organization, a research organization, which created a feedback system for employers that would identify and measure elements of worker engagement most tied to the bottom line. The 12-question survey identifies strong feelings of employee engagement and has shown a strong correlation between high scores and superior job

performance. The survey can be downloaded at the Government Fleet website at www.gfleet.com/engage.

CHALLENGE: UNPREDICTABILITY OF FUTURE FUEL PRICES & POLITICAL PRESSURE TO EXPAND GREEN FLEET INITIATIVES In terms of government green fleet initiatives, Morris of Sarasota County

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(L-R) Greg Morris, Karen Yeo, and Bill Armstrong from Sarasota County “caught the fish” in a morale-boosting game.

Dan Croft, fleet management director for Collier County, Fla., discussed his cannibalization of totaled vehicles for parts.

Dave Vasquez of SECO Energy (formerly of Lake County, Fla.) discussed his justification model with event attendees.

said, “pressure has somewhat decreased, but we must do what is right for the environment, the customers, and stay within budget. If alternative fuels are logical, funding is available through grants, and if the environmental impact is significant, it is logical to secure green assets. We purchased hybrid bucket trucks proven to meet all green initiatives for our fleet operators, and customers love them because they are quiet.” Driver training is another low-cost or no-cost way to reduce fuel consumption. Co-ops for fuel is a trend in Florida and throughout the country to reduce acquisition and operating costs. Outside of Florida, Ft. Worth, Texas, saves millions of dollars per year with its Texas cooperative fuel purchasing agreements. Vasquez of SECO summed up the meeting when he said, “Be proactive, not reactive. If you don’t know every facet of your fleet costs, someone else will figure it out for you and leave you a box to pack your personal stuff.” For more ideas and solutions to the top challenges facing public sector fleet managers today, visit Government Fleet’s website at www.gfleet.com and click on the header labeled “Fleet Docs.” Fleet Docs provides a comprehensive list of public sector fleet forms, request for proposal (RFP) templates, policies, manuals, procedures, and reports. Fleet managers can also share their own documents by uploading the files online.

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March/April 2011

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BEYOND THE Law enforcement vehicles come in all shapes in sizes. In addition to the traditional patrol vehicle

LENCO B.E.A.R. AND BEARCAT ARVS Lenco’s BearCat and the larger B.E.A.R. (Ballistic Engineered Armored Response) Armored Response Vehicles (ARVs) are built on commercial truck chassis using commercial parts. Both ARVs have certified hardened steel armor and ballistic glass capable of multi-hits, blast-resistant floors, specially designed gunports, roof hatches, and multiple ingress/egress doors. The B.E.A.R. transports up to 15 personnel and can evacuate 25-30 persons. This is an ARV with multiple uses, including hostage rescue and tactical medical support. The interior compartment is capable of housing the logistics needs of most SWAT teams. Smaller than the B.E.A.R., the BearCat is well suited to easy maneuvering, particularly in urban and suburban environments with narrow streets. Both ARVs are capable of maintaining highway speeds. Website: www.armoredtrucks.com/products-bearcat.aspx

The BearCat G3 provides 0.50 caliber armor protection with high ground clearance for aggressive off-road performance and maneuverability. It is used by SWAT and Special Ops teams at high security facilities for perimeter patrol and security.

OSHKOSH DEFENSE TACTICAL PROTECTOR VEHICLE

The Oshkosh SandCat Tactical Protector Vehicle is a highmobility tactical vehicle engineered to meet the challenges faced by tactical officers responding to high-risk situations like terrorist threats, hostage situations, drug interdictions, and gang activities.

With a 116-inch wheelbase, ground clearance of 13 inches, width of only 85 inches, and highway speed capabilities of over 75 mph, the Oshkosh Defense Tactical Protector Vehicle (TPV) can operate on almost any city street or rural road. With selectable four-wheel drive, heavy-duty front axle and trailing-arm coil spring rear suspension, TPV doesn’t need roads. The TPV’s configurable interior can seat up to nine fully equipped tactical officers in comfort and safety. The Oshkosh TPV is built on a Ford F-550 chassis with a 365-hp V-10 gasoline engine. The Integrated Survivability System, rated to meet the standards for National Institute of Justice (NIJ) Level IV certification, is capable of stopping 7.62 armor piercing (AP) rounds, for both opaque and transparent armor, protecting officers and the citizens they’re sworn to protect. Website: www.oshkoshdefense.com/products/1/sandcat/12/tactical-protectorvehicle-tpv

PATRIOT3 RAID The Patriot3 RAID (Rescue, Access, Intervention, Deployment) allows teams to deploy into second and third stories and perform hostage rescue operations, aircraft and bus assaults, and perimeter breaching. The RAID is built on a Ford E-350 Cargo Van chassis with a diesel engine and a Quigley 4x4 transmission. It has upgraded tires and suspension. The interior is finished with tactical seating, storage, and lighting to accommodate 10 fully equipped tactical officers. The RAID is mounted with a Liberator Elevated Tactics System (ETS) ramp system for elevated tactical capabilities. Options include RETRAX Running Boards, FAST (Fast Rope System), SAS (Side Assault System), and NIJ Level III armor for the windThe Patriot3 RAID is a multi-purpose tactical transport sysshield and driver’s window. tem and deployment platform that allows teams to deploy Website: www.patriot3.com/raid-elevated-deployment/ into second and third story ports of entry. 36

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March/April 2011

2/23/11 2:11:18 PM

BY MELANIE BASICH & LAUREN FLETCHER

PATROL CAR or motorcycle, the following are other vehicles law enforcement officers use to keep the peace.

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The Reeves’ Incident Command Post (ICP) Trailer is a lightweight, mobile solution to bringing operations directly to the incident scene. Consisting of a state-of-the-art trailer and military-grade shelter that can be set up in minutes, the ICP ensures that responders have the space they need to handle any critical situation.

Reeves’ Incident Command Post (ICP) is a trailer and shelter combination that allows law enforcement responders to establish a fully equipped interoperable incident command post through which multiple organizations can communicate with each other regardless of discrepancies in equipment and hardware. With a starting weight of less than 3,000 lbs. and 12 inches of ground clearance, the ICP’s lightweight, aerodynamic design can easily be towed behind most vehicles, even off road. Once at the scene, the rugged, militarygrade shelter can be deployed with minimal personnel in minutes. Optional packages include satellite communications, Internet access, and an integrated command and control system. Website: www.reevesems.com/icp

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Government Fleet

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March/April 2011

2/23/11 2:11:22 PM

WHAT TO CONSIDER WHEN SPEC’ING

EXCAVATORS

Whether renting or buying, fleets must ensure excavator specs meet the needs of the application. Fleet managers and equipment manufacturers weigh in on factors to consider. BY STEPHEN BENNETT

AT A GLANCE When spec’ing an excavator, take into consideration: • Boom reach, maximum loading height, and swing radius. • Attachments needed for specific applications. • Whether it has enough power to lift what needs to be lifted. • Tail swing, depending on how much work space is available. • Equipment transport. • Training for operators and mechanics. 38

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ou dig, right? What government fleet doesn’t? Many public works departments use a backhoe for everyday jobs, resorting to an excavator for special occasions. Excavators are more versatile and perform better now than excavators of a decade and more ago, according to manufacturers. While this is good news, it means purchasers and renters should do more research on the equipment to ensure they make appropriate purchasing and spec’ing choices. The user has a range of factors to consider, including size, weight, reach, tail swing, horsepower, attachments, auxiliary hydraulics, and breakout force. Whether a fleet rents or purchases an excavator, it still must ensure the machine’s specs match up to the work required.

RENT OR BUY? Fleets have various ways of determining when to rent or buy an excavator, with many finding rental sufficient for their needs. “When the reach and depth requirements exceed those of a backhoe, organizations will often rent an excavator, but relatively few municipal fleets actually buy one,” said Chris Amos, CAFM, commissioner of Equipment Services for the City of St. Louis.

Walter Burnett, CAFM, public works director for the City of Macomb, Ill., said, “We occasionally rent an excavator when the project warrants it. Our decision on size is almost always based on when the excavator will do the job better than one of our backhoes. Often, we rent a mini excavator if the workspace is tight and sometimes larger machines are needed when the job requires greater digging depth or breakout forces than our backhoes can provide. Our most recent rental was for a 48-inch reinforced concrete culvert project across a street. In that case, the weight of the pipe sections was the determining factor.” Stephen Kibler, ACFM, fleet manager for the City of Loveland, Colo., offered a rule of thumb for fleet managers: If excavator utilization is less than 400 hours per year, rent it. “Our standard workload does not currently justify our purchasing an excavator,” Kibler said. “Most underground main leaks in Loveland involve a six-inch or smaller pipe. Access or excavation is accomplished by a backhoe 95 percent of the time. If a larger main needs accessing, a contractor would be hired to do the excavating.” Kibler added, “mid-sized, rubbertracked units that are more maneuverable seem to be the best value in a municipal

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(Photos shown from left to right) The Terex TC 20 Compact Crawler Excavator has max dig depth of 8 feet 2 inches and max reach of 14 feet 4 inches. The Caterpillar hydraulic hammer attachment helps break surface material such as concrete sidewalks and roadways. The Caterpillar auger attachment shown can be used in parks and recreational areas for planting trees and installing fences and light poles. The John Deere 220D W wheeled excavator allows operators to drive to a jobsite rather than loading the equipment onto a trailer.

environment. Most excavating needs are predominately in the roadway, and pavement damage needs to be minimized.”

MANAGING SPECIFIC DEMANDS Transporting an excavator to a jobsite is also an issue, in part because side streets aren’t always large enough to allow offloading. In Loveland, Kibler said the Water Department will drive a backhoe as far as 10 miles to a worksite, which accounts for 50 percent of the equipment wear-and-tear. (The size and weight of the machine also determine the size of a trailer and towing vehicle, and whether the driver will need a commercial driver license.) Government fleets deal with different demands day-to-day, often shaped to some degree by geography and seasonal weather patterns, among other factors. Flooding and mud slides come with the territory in Snohomish County, Wash. Excavators are used to move rock and riprap into place for flood control and to clear mud slides. The Snohomish County Department of Public Works (DPW) has 11 excavators: five crawler excavators, four mini-excavators, and two wheeled machines. They are from a mix of manufacturers, including Caterpillar, JCB, John Deere, and Komat-

su, said Allen Mitchell, CPFP, fleet manager for Snohomish County DPW. “We rent additional machines if we’re busy,” Mitchell said. During the construction season, the road division, which has 170 employees, hires half as many again for summer help. Seasonal employees are limited to operating pickup trucks while the full-time, experienced employees are assigned to the excavators and other more sophisticated equipment, Mitchell said. Spec’ing the excavators for various uses requires consideration of a wide range of factors that include boom reach, maximum loading height, and swing radius. An excavator spec’d with hydraulics to run a well-chosen variety of attachments is a very versatile machine, Mitchell said. Snohomish County’s excavators are used for solid waste management, parks maintenance and construction, and road repair and construction. At transfer stations, the County uses excavators with a hydraulic thumb attachment to sort and pack recyclables. In the County’s parks, an excavator with a mower attachment replaced a traditional mower, and an excavator with a hydraulic thumb attachment is also used for parks projects such as reconfiguring drainage systems. The road crews use excavators with pave-

ment breakers; they also use a hydraulic thumb attachment to load catch basins and culverts on and off trailers and to plant trees. Road crews use the mower attachment for drainage projects along rightsof-way and to remove debris from bridge structures to prevent flood damage. For construction projects, a compactor attachment comes in handy for compacting soil to minimize settling once a concrete slab is poured. To dig for construction projects, the County usually specs two or three buckets of varying widths, Mitchell added. A compact or mini excavator can cost about $95,000 and a large excavator around $350,000, Mitchell said. As for service life, Mitchell said, “We don’t go beyond 10,000 hours. After that, there can be major rebuild costs.” That number of hours usually translates to about 15 years, Mitchell said.

SPEC’ING THE RIGHT EXCAVATOR Tom Connor, Bobcat’s excavator product specialist, pointed out a fundamental question anyone purchasing or renting an excavator must ask: Can it lift what needs to be lifted? Manhole covers, Jersey barriers, and large trees are typical items that might have to be handled. Beyond that, auxiliary hydraulics to run attachments are crucial, Connor and Government Fleet

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OFF-ROAD other manufacturers agreed. Purchasers typically order three to five attachments, Connor said. Besides a couple of buckets of different sizes, a hydraulic thumb is widely valued for the versatility it provides. Another important attachment is a breaker or “hammer” to break through pavement. For the sake of ROI, “you want to use an excavator all day,” said Keith Rohrbacker, product manager of Kubota, and attachments can help make that possible. Systems or designs that support attachment changes yield multiple benefits, notably time savings. Some manufacturers offer a quick-exchange system. Besides enhancing productivity, these also can provide a safety advantage, Rohrbacker said, considering attachments can weigh hundreds to more than 1,000 lbs. Apart from ever-present budget considerations, the type of work or range of projects largely determines the size and weight of the excavator that can be used. In this context, tail swing must be taken into account. Reduced tail swing allows a machine to get closer to an obstacle or function in a restricted space, said Mark Wall, product marketing manager for John Deere Construction & Forestry Co. When spec’ing, always account for tail swing. Bobcat’s Connor recalled a recent visit to St. Louis, where the sewer department was considering what sort of machine it would need for residential repairs that would require digging six to eight feet in backyards, where maneuverability would be at premium. Some excavators can narrow their track base to pass through smaller areas, for example. Amenities such as a cab enclosure with air conditioning and heat were unheard of a decade or more ago. While these provide operator comfort and can support productivity, some crew chiefs might be averse to spec’ing them, Rohrbacker said, because they want the operator to be in constant contact with the ground crew, and they also sometimes want the operator to get out of the cab to help with certain tasks. Fixating on horsepower when spec’ing an excavator can be a mistake, several manufacturers stressed. The engine drives the hydraulic pumps and “that’s all it does,” Rohrbacker said. “An excavator can have less horsepower than another machine and perform better because of its hydraulic system.” 40

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The Kubota U55 five-ton tight tail swing compact excavator is designed for work in tight jobsites.

The Caterpillar hydraulic thumb attachment provides greater machine dexterity when moving large objects or cleaning debris.

COMPACT VERSUS FULL-SIZE

compared to having the modifications done in the field after the fact. Training is another important element Brian Stellbrink, Americas excavator product specialist for Caterpillar, noted. Most manufacturers provide some level of training upon delivery of the machine, but this usually just covers the basic walk-around. Given the complexity of these machines and the technology involved, Stellbrink said, customers should include specific training provisions in their requests both for operators as well as technicians. In addition, most manufactures provide details about their machines online. Meanwhile, the excavator market is always changing, with frequent new developments. Last year, Komatsu introduced a compact hydraulic excavator designed for construction, utility, landscaping, and other small- to mid-sized applications. The machine is equipped with wireless technology that sends operating information to a secure website. Operating hours, machine location, maintenance notifications, out-of-area notifications, machine utilization, and residual fuel levels are relayed to the Web application for analysis.

A number of fleet managers said they tend to use compact or mini excavators. When choosing a compact excavator, make sure the piece of equipment will be adequate for 85-90 percent of jobsite needs, said Tom Reith, construction product manager for Terex. “Don’t sacrifice power, breakout force, or anything else just to save a dollar,” Reith said. Reith added that a compact excavator must be durable and reliable because downtime is expensive. The undercarriage is the most costly part of an excavator, comprising almost 20 percent of a machine’s purchase price and nearly 50 percent of its maintenance cost, according to Terex. Though some fleet managers might favor compact machines, sometimes more is called for. An advantage of larger, wheeled excavators, for example, is that they can be driven along roads at, for example, 17 mph, to a water main break, fitted with a hammer attachment to break through pavement and a bucket for digging, refill the opening once repairs are made, and be driven away. Unlike years ago, the range and choice of excavators has grown now to the point that a user can seek out a “best fit” rather than take a one-size-fits-all approach, pointed out Jason Walker, governmental support consultant with Caterpillar. Agencies should consider spec’ing additional hydraulic capabilities from the factory, he added. This not only provides increased versatility but can also significantly reduce the cost of these options

SOURCES • Chris Amos, CAFM, commissioner of Equipment Services, City of St. Louis. E-mail: amosc@stlouiscity.com • Walter Burnett, CAFM, public works director, City of Macomb, Ill. E-mail: pwdirector@cityofmacomb.com • Stephen Kibler, ACFM, fleet manager, City of Loveland, Colo. E-mail: kibles@ci.loveland.co.us • Allen Mitchell, CPFP, fleet manager, Dept. of Public Works, Snohomish County, Wash. E-mail: Allen.Mitchell@co.snohomish.wa.us • Bobcat. www.bobcat.com • Caterpillar. www.govbidspec.com • John Deere. www.deere.com • Kubota. www.kubota.com • Terex. www.terex.com

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BendPak’s all-new HDS35PX features a 35,000lb. lifting capacity and a maximum lifting height of nearly 15 feet. It is designed for parking and storing bus fleets and can also be used Placing multiple HDS-35PX lifts side by side can further for government and utility increase overall parking capacity. vehicle parking. The HDS-35PX is ideal when vehicle storage space is short, according to the company. By stacking buses and trucks safely on top of each other, fleets can take advantage of formerly wasted overhead space. Fleets can also place multiple lifts side by side, where every two lifts share a pair of columns, increasing the overall parking capacity by up to 75 percent, according to the company. The HDS-35PX can be used indoors or outdoors. WWW.BENDPAK.COM

SNAP-ON SRD35 TORQUE ADAPTOR The Snap-on SRD35 Torque Adaptor is designed for daily use by service technicians. It allows technicians to reach bolts easily and eliminates the need The SRD35 Torque Adaptor is designed for daily use and allows to switch tools for technicians to reach bolts easily. 90-degree torque procedures, according to the company. The Torque Adaptor has special applications for use on Ford F-250/F-350 trucks and Excursions (2003-2007) and Ford E-Series vans (2004-2009), including ambulance, law enforcement, and shuttle bus conversions using the 6.0L Power Stroke diesel engine. A ¾-inch drive ratchet/torque wrench transmits the high torque necessary to loosen and tighten head bolts with less strain on the technician, according to Snap-on. WWW.SNAPON.COM

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OF FACE-TO-FACE NETWORKING OPPORTUNITIES!

ADAMSON INDUSTRIES PATROL VEHICLE PUSH BUMPER Adamson Industries is shipping its PB400 Push Bumper System by Setina for the 2011 Dodge Charger, 2011 Chevrolet Caprice PPV, and the 2012 Next Generation Ford Interceptor sedan. The PB400 Push Bumper is made of high-strength aluminum and increases protection to fender, grille, and headlights, according to the company. The rounded design accommodates today’s aerodynamic vehicles. The Bodyguard Push bumpers feature a powder-coated finish and are easy to install, according to the company. WWW.ADAMSONINDUSTRIES.COM

The PB400 Push Bumper increases protection to vehicle fender, grille, and headlights.

Government Fleet Expo & Conference is your best opportunity all year to mix with public sector fleet managers at all levels. Build new partnerships and create new alliances!

GROTE INDUSTRIES WHITELIGHT LED LAMPS Grote Industries’ purpose-built WhiteLight LED lamps can bring fire rescue vehicles into NFPA 1901: Standard for Automotive Fire Apparatus lighting compliance, according to the company. Guidelines to support firefighters during response and on-scene activity pertain to apparatus ordered on or after Jan. WhiteLight lamps are impervious to the types of shock 1, 2009. Grote’s LED lighting solu- and vibration that would disable conventional lighting tion can be specified on any equipment, according to the company. new vehicle, but offers departments the opportunity to bring their existing vehicles into compliance. According to the company, LED lighting is more practical than existing solutions such as pole-mounted scene lighting, which is more costly to purchase and maintain and requires more power draw. Lower power draw allows users to run the vehicle’s other mission-critical equipment. Grote LED WhiteLight lamps are rated for tens of thousands of hours of service life. The lamps resist water spray and are listed for wet location usage. WWW.GROTE.COM

June 6-8, 2011

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EXCAVATORS TEREX TC50 COMPACT EXCAVATOR

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June 6-8, 2011

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Government Fleet

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The Terex TC50 compact crawler excavator offers a stable, zerotail swing platform for trenching and excavating in constricted work environments. It is designed to turn within its tracks so the rear of the machine does not swing The Terex TC50 offers ground-level access to all critical machine out. The offset boom components, including the engine, drivetrain, and hydraulics. allows for working in close proximity next to buildings and foundations. The TC50 is designed with a 39.4 hp Yanmar 4TNV88 engine and a load-sensing and load-independent flow division hydraulics system. It weighs 11,067 lbs. and offers a maximum dig depth of 12 feet 1 inch and maximum reach of 20 feet 4 inches. The insulated steel cab is FOPS (Falling Object Protective Structures) and TOPS (Tip Over Protective Structures) certified. WWW.TEREX.COM

BOBCAT E35 COMPACT EXCAVATOR The Bobcat E35 is a zero-tail swing excavator designed for work in space-constrained jobsites. The E35 includes an auto-shift travel feature that automatically shifts to high range for easier transporting and turns, an auto-idle feature that decreases fuel consumption and over- The Bobcat E35 compact excavator offers zero tail swing for all jobsite sound lev- working tight spaces. els, an easy-to-operate fingertip boom swing that opens up space on the floor for the operator’s feet, and an integrated slew brake for infinite braking positions. It offers 50-percent quieter overall sound level from previous models and 20-percent greater arm breakout force, according to the company. WWW.BOBCAT.COM

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KUBOTA KX057-4 COMPACT EXCAVATOR The Kubota KX057-4 is a conventional tail swing model that provides stability in open areas, even when thumb and wide buckets are used. It utilizes a 47.6 gross hp directinjection Kubota diesel engine and includes an auto idle feature that conserves fuel and reduces noise level, according to Kubota. The KX057-4 features a load-sensing The KX057-4 uses X-frame construction for hydraulic system, auto-downshift travel strength and stability, according to the company. motors, and a digital panel that displays vital information and notifies the operator when maintenance is needed. Safety attributes include swivel and travel negative brake systems and ROPS/FOPS (Roll Over Protective Structures/ Falling Object Protective Structures) certification on all canopy and cab models. WWW.KUBOTA.COM

JOHN DEERE 120D EXCAVATOR John Deere’s 120D hydraulic excavator features a Powerwise III engine/ hydraulic management system. The excavator delivers 93 net hp and has an arm breakout force of 12,823 lbs. A hydraulic recirculation system delivers efficient flow to the boom and arm, speeding multifunction operation and cycle time, according to the company. The 120D has tungsten-carbide coated surfaces Operators can select from three and oil-impregnated boom, arm, and bucket modes to match the engine rpm to op- bushings. erating conditions and applications. A multifunction LCD screen in the cab allows operators to monitor machine operations. WWW.DEERE.COM

You’ll leave every session with • REAL BUSINESS PLANS • SPREADSHEETS USED BY FLEET MANAGERS • POLICY AND PROCEDURE MANUALS • TEMPLATES all on a convenient flash drive.

CATERPILLAR 336E HYDRAULIC EXCAVATOR The Cat 336E hydraulic excavator uses a Cat C9 engine that delivers 317 net hp and features advanced electronic control, precise fuel delivery, and refined air management for optimum performance and reduced fuel consumption, according to Cat. The 336E features strengthened boom, Increased hydraulic pressure in the 336E’s heavydigging arm, and boom-foot mount. A lift system yields increased lifting capacity, strengthened wing frame supports the according to the company. machine’s redesigned ROPS (Roll Over Protection Structure). In addition to meeting Stage IIIB/Tier 4 Interim emissions requirements, the 336E also meets all applicable sound-level and safety regulations, including ISO (International Standards Organization) requirements for visibility. WWW.CAT.COM

June 6 6-8, 8 20 2011

San Diego Convention Center San Diego, CA

To register, visit www.GovFleetExpo.com or call 800-576-8788 Government Fleet

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June 6-8, 2011

SSan Diego Convention Center, Hall C SSan Diego, CA Get REAL at Government Fleet Expo & Conference 2011…with REAL Take-Home Value, REAL Solutions from REAL Fleet Managers, and REAL-LY Great Face-to-Face Networking

Schedule-At-A-Glance

(Subject to Change)

MONDAY, JUNE 6, 2011

PRE-SHOW EVENTS: 11:00am

–

1:45pm

100 Best Fleets Roundtable

2:00pm 3:00pm 4:00pm

– – –

2:45pm 3:45pm 4:45pm

Right Sizing Your Fleet Using Motor Pool Management Technology The Future of Fleet Management: A Telematics Technology Forecast Accident Reduction Technologies, Strategies and Solutions

TECHNOLOGY FORUM:

GFX Begins with NETWORKING EVENTS:

GFX02-16.11

5:00pm 6:15pm 7:30pm

– – –

6:00pm 7:15pm 9:00pm

Opening Networking Reception Facility Tour – City of San Diego Networking Night on the Town

TUESDAY, JUNE 7, 2011 8:30am – 10:00am Breakfast and Opening Keynote Speaker: All-Star Pitcher Dave Dravecky 10:00am – 10:15am Networking Break 10:15am – 11:15am Concurrent Sessions: • Advanced Parts Room Management • Implications of Managing an Aging Fleet • Creating a Hybrid Balanced Scorecard/Process Improvement Program 11:15am – 11:30am Networking Break Sponsored by 11:30am – 12:30pm Concurrent Sessions: • How to Attract and Retain the Best Personnel • Microsoft Excel for Public Fleet Managers • A Step by Step Guide to Calculating Your Carbon Footprint 12:30pm – 3:00pm Lunch and Exhibits 3:00pm – 4:30pm General Session: Fleet Challenges and Solutions Networking Power Session 4:35pm – 5:30pm Concurrent Sessions: • Public Sector Fleet Management in the New Economy • How to Be Recognized as the Fleet Expert in Your Operation • 10 Innovative Solutions in 55 Minutes 5:30pm – 7:30pm Networking Reception and Exhibits 7:30pm – 9:00pm Networking Night on the Town

Visit www.GovernmentFleetExpo.com or c GF03_Products.indd 46 GF0311gfx_spd.indd 2-3

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Navigate Your Fleet to Excellence WEDNESDAY, JUNE 8, 2011 9:00am – 10:00am Breakfast and Awards Ceremony • Government Fleet Public Sector Fleet Manager of the Year • 100 Best Fleets 10:00am – 11:00am Keynote Presentation 11:00am – 1:30pm Lunch & Exhibits 1:30pm – 2:30pm Concurrent Sessions: • How to Develop an Insourcing Program as a Revenue Stream • An Electric Combination: Public Fleets and Electric Vehicles • Fleet Audits: What Auditors are Looking For 2:30pm – 2:45pm Networking Break 2:45pm – 3:45pm Concurrent Sessions: • Advanced Fleet Utilization • A Safety Self-Analysis: How Safe is Your Shop? 3:45pm – 4:00pm Networking Break 4:00pm – 5:00pm Concurrent Sessions: • CSA Vehicle Maintenance Workshop • Doing Less with Less 5:00pm – 6:30pm Networking Night on the Town Sponsored by THURSDAY, JUNE 9, 2011

POST-SHOW EVENTS: FASTER Fleet University AssetWorks Fleet Software Workshop

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GOVERNMENT FLEET

MANAGING PUBLIC SECTOR VEHICLES AND EQUIPMENT

WWW.GFLEET.COM

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By Mike Antich

PUBLIC FORUM

YOU’RE ONLY AS GOOD AS YOUR STAFF

he primary job of a public sector fleet manager is managing assets and the services provided to user departments. However, as every fleet manager can attest, as much as 60 percent of the work week is consumed by personnel management. In many respects, people management (staff and interdepartmental) is harder than asset management. How you deal with “people” issues influences shop morale, user department relationships, and management’s opinion of your effectiveness as a fleet manager. Successful people management translates into higher technician productivity, improved operational efficiencies, and improved customer service. However, in today’s environment, it is harder to keep morale up with employees fearful for their jobs, in a no-pay raise environment. Stress levels are up at shops around the country, which decreases productivity at a time when you need to get more out of your staff. Although you may “think you already know” what is on the minds of your employees, encourage your staff to feel free to express ideas and concerns to you. You may be surprised at what you hear. Listen to not only what they say, but how they say it. Encourage constructive feedback. Adopt an open-door policy and let your staff know their comments will be held in confidence. You should continually gauge the job satisfaction of your staff. The first rule is to get out of your chair and walk the shop. Observe what’s going on in the shop and in the yard. Talk with your technicians. When le48

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gitimate complaints are brought to your attention from the shop floor, support your team by addressing them with management. The best way to resolve problems is to prevent them from happening in the first place. Let associates know you are receptive to new ideas to improve fleet operations. Encourage creativity and innovation, which is extremely important in maintaining high levels of customer service.

GARDENING VS. MANUFACTURING Customer service is more akin to “gardening” than to “manufacturing.” You can’t “manufacture” customer service; you need to “cultivate” customer service. A hallmark of a best-in-class fleet operation is excellent interdepartmental relationships. This is something cultivated over time. An effective fleet manager listens to user departments. You need to know your customers’ objectives. It is important to regularly survey customers to determine the needs, wants, and expectations of fleet operations. If you are not meeting these needs and expectations, then you’ve failed as a fleet operation. It is important for fleet operations to be cost-efficient and to temper unwarranted user department demands, but an unhappy customer represents a deficiency in your department’s performance. You need to identify emerging enduser issues before they become major issues. You need to document downtime, cost issues, and customer-perceived lack of performance. When collecting this information, ask the customer department to substantiate whatever they can in writing. Conduct a work-order analysis to determine

the validity of these issues. Customer service has a dollar value associated with it. For example, every hour of downtime costs your organization real dollars in lost productivity. It is extremely important to discuss service standards with your staff. They need to hear this from you, not read it in a manual. It is important to explain your management objectives to all team members. Explain how each staff member fits into the bigger picture of what fleet operations is seeking to accomplish. You’d be surprised how many technicians do not have a good understanding of the organization’s overall goals and how much they appreciate being included in these discussions. It is critical that technicians understand the mission of fleet operations. You need to constantly re-communicate this message so that it becomes part of fleet’s everyday operating procedures. However, a departmental customer-service mindset is created by actions, not words. Memos and presentations that tout “best-in-class service” don’t mean a thing unless your fleet organization lives, breathes, and delivers this customer service. Unfortunately, internal customers are too often treated as a captive audience that can be dictated. Technicians must understand that internal customers aren’t their nemeses. It is important to remember the reason fleet departments exist is to support customer departments.

ESTABLISHING CUSTOMER SERVICE METRICS Customer service has long been the measure that we “live or

die” by in this business. As fleet manager, you have to understand service technicians aren’t the first line of defense in raising the customer service bar — you are. The fleet manager is responsible for creating a shop culture that values internal customers, even difficult ones. As a leader, your success is based on making your team customer-oriented. To build a customer-service mindset, you must employ both formal and informal metrics to measure progress. Solicit regular feedback from customers using customer surveys, but also use informal methods as simple as conversations and direct observations. These informal methods will alert you to service deficiencies. You also need a way to measure and manage customer service. Unfortunately, people are more often likely to do what you “inspect,” rather than what you “expect.” Nevertheless, by not using metrics, you run the risk of detaching yourself from customer-related issues. To be successful in today’s difficult work environment, it is more critical than ever to create a shop culture providing highquality service that focuses on the customer, regardless of the circumstances. To develop a customer service mindset, you must view work from the customers’ perspectives. Nothing creates more credibility for your team than for senior management to hear other departments compliment you on the quality of customer service they receive. But to receive the praise, you must earn it. Let me know what you think. mike.antich@bobit.com

March/April 2011

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