March 2008, Government Fleet - Cover Story
Proven Strategies Reduce Fuel Spend
By Grace Lauron
Get Rid of the Gas Guzzlers
Fleets can avoid wearing out overly-used vehicles by maximizing use of lesser-used vehicles for smaller tasks.
Illinois Central Management Services has right-sized its fleet since 2003. Fleet has been cut by about 1,600 vehicles. "It’s estimated the fleet used approximately 1.4 million fewer gallons of fuel between the 2004 and 2005 fiscal years," said State Fleet Manager Barb Bonansinga. Total gallons dropped from 14.1 million in FY-04 to 12.7 million in FY-06, an estimated $3.8 million savings, based on price per gallon of $2.75.
Volusia County, Fla., has established lifecycles for each fleet vehicle type. Utilization reports are run every year. Vehicles utilized less than 1/3-1/4 of the median miles per class are subject to fleet "right-sizing." Lifecycles for lesser-used units have been extended to maximize utilization. Replaced or right-sized vehicles in the best condition are placed into the motor pool or cascaded to other departments to replace older units. A centralized motor pool of 30 vehicles was checked out 771 times in 2007. Total right-sizing, lifecycling, and utilization savings were more than $400,000 last year.
The City of Moline, Ill., fleet met with departments to discuss right-sizing opportunities during vehicle replacement. "Everyone wanted to be a team player," said Fleet Manager J.D. Schulte.
One of the most significant savings has come from replacing full-size trucks and cars with subcompacts for inspectors. "All inspectors’ vehicles have been replaced with either subcompact LEV (low emission vehicles) or subcompact FFV (flex-fuel vehicles). We have projected the lifecycle savings on fuel cost alone to be over $3,300 per vehicle," said Schulte.
The cities of Peoria, Ariz., Fort Wayne, Ind., Fort Worth, Texas, and Colorado Springs, Colo., also use right-sizing strategies to reduce fuel consumption. "Old habits are hard to break, but with the rising cost of fuel, many departments are starting to see the necessity of change. The old way is no longer acceptable," said Warren Laing, fleet manager for the City of Peoria.
King County’s daily vehicle rental pool allows employees to reserve vehicles on a trip basis, eliminating the need for vehicle assignments in low-usage areas and minimizing trips through carpooling, saving fuel.
The City of Inglewood is also reducing maintenance and fuel cost by sharing vehicles via a fully automated motor pool Web-based solution, reducing fleet size by five vehicles.
Properly Maintain Vehicles
Keeping vehicles properly maintained can minimize costly repairs later on. King County has ASE-certified fleet administration technicians perform a standard, scheduled preventive maintenance program, requiring employees to bring vehicles in at the scheduled intervals for maintenance such as engine tuning, air and fuel filter replacements, and manufacturer-specific tire inflation.
"It would have cost us an additional $484,000 in 2007 had we not been adhering to these practices," said Fleet Manager Windell Mitchell.
Based on suggestions by fleet customers, Volusia County, Fla. now provides compressed air at each fueling location to ensure proper tire inflation. A low-cost solution to better safety and fuel cost savings, proper tire inflation provides the fleet up to a 3.3-percent savings, based on Department of Energy research.