Government Fleet

FACT 2013

Magazine for the professional fleet manager managing public sector vehicles and equipment.

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❲ GENERATING REVENUE ❳ Put Advertising on Sanitation Trucks ■ Plan: Te City of Moline, Ill., began advertising on its refuse vehicles in 2006, a project that began to cover the increased maintenance costs of new automated refuse trucks. J.D. Schulte, CAFM, CPFP, feet manager, wanted to bring in revenue, and he knew buses in the transit agency were doing so through advertising. However, he didn't have the staf to set this up and manage it. ■ Execution: Schulte contacted the same advertising company the transit agency used, setting up a deal where the City gets a portion of proceeds (explained monthly via a matrix the company sends to feet services) from an advertising contract without having to do any work. Te company manages the program, and the City is only responsible for paying for vinyl repairs if the vinyl is damaged. Te City started advertising on all fve of its new refuse trucks and has since expanded to six. ■ Challenges: Working out the contract details was timeconsuming. "Everyone wanted to make sure we protected the City from untactful and distasteful ads," Schulte explained. To solve this, the fnal contract states that Moline staf has the fnal approval over all ads. Tere was also concern about the cost of repairing the vinyl, but Schulte reported that in the years this program has been running, this has yet to happen. ■ Results: Annual revenue from the advertising program The City of Moline, Ill., uses advertising on its refuse vehicles to cover the maintenance costs of its automated refuse trucks. is currently $39,600 for the six trucks, up from $30,000 back in 2006 for fve trucks. Tis revenue is used solely to cover refuse vehicle maintenance, which will help the sanitation department as garbage collection transitions into an enterprise fnance model, Schulte said. Te program has also received praise from the local media. ■ Advice: "Forge ahead!" Schulte said. "As public servants, anything we can do to create a revenue stream to ofset the use of hard-earned tax dollars is benefcial." He added that agencies should make sure they don't leave themselves open to loopholes when creating the contract. SOURCE: J.D. Schulte, CAFM, CPFP, fleet manager, City of Moline, Ill. E-mail: jschulte@moline.il.us ● ❲ LOWERING COSTS ❳ Reuse Waste Oil for Heating ■ Plan: Te City of Fargo, N.D., feet purchased three waste oil furnaces and a large storage tank to collect oil all year. Te furnaces are in the parking area and set to 60 to 65 degrees to keep vehicles at above-freezing temperatures and allow any ice on them to melt. In the past, the feet sold its used oil for $0.25 per gallon. ■ Execution: Te feet purchased the 250,000 BTU furnaces during a facility upgrade. Realizing afer the frst year that its two 1,000-gallon storage tanks wouldn't store enough oil to last the entire six-month heating season, feet staf purchased an additional 6,000-gallon storage tank. Wayne Hegseth, building maintenance, said he sets the regular natural gas heater at about 50 degrees as a backup, in case there are heating problems during the weekend and no one is there to fx it. ■ Challenges: Because of the layout of the facility, the storage tanks are farther away from the furnaces than recommended. To compensate, feet staf purchased a 5-gallon day tank for each furnace, and oil is automatically pumped from the storage tank into the day tanks. Te furnaces need to be serviced every 500-600 hours of use, which takes staf two hours to complete. Finally, Harold Pedersen, feet services manager, said there are additional labor hours in handling used oil to consider. ■ Results: Te feet uses approximately 8,000 gallons of stored oil per year, which on average reduces natural gas heating costs by $35,000 annually. With all costs considered, Ped- The City of Fargo, N.D. feet purchased this 6,000-gallon waste oil storage tank in order to store enough oil to burn all year. ersen estimated that return on investment took three years. ■ Advice: For those thinking about starting a waste oil heating program, Hegseth said, "Find out how many gallons of waste oil you create to see if you have enough to run [the furnaces]. It defeats the purpose if you don't have enough oil." He added that feet staf was surprised at how much oil the furnaces used per hour — 1.7 gallons per heater. SOURCES: ● Wayne Hegseth, building maintenance, City of Fargo, N.D. E-mail: WHegseth@cityoffargo.com ● Harold Pedersen, fleet services manager, City of Fargo, N.D. E-mail: HPedersen@cityoffargo.com SEPTEMBER 2013 I GOVERNMENT FLEET 27

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