Project
Profile
By
Melinda Orman
Variety may be the spice of life, but when it comes to
collection and transfer vehicles, it often becomes more
of a vice.
Dexter White, public works director for the City of Macon,
GA, would concur. A little more than a year ago, he
helped orchestrate the city's transition from a 32-truck
hodgepodge to a streamlined fleet of 17 McNeilus rearloaders.
"We
had a variety of trucks that we used before," White
says. "It ranged from Heil to Loadmaster, and the
ages ranged from 2 to 15 years old. We were buying two
trucks per year, and we weren't replacing the trucks
that needed to be replaced."
Budget -
especially with regard to maintenance - was indeed a
large factor in Macon's decision to make the switch.
"Let me tell you how it works," White volunteers. "We
bought a guaranteed maintenance contract, which means
that McNeilus is responsible for the maintenance on
the trucks for three years. But since we have a vehicle
maintenance department, McNeilus pays us to do the maintenance
on their vehicles. So it's win-win for the city."
Now, not only can Macon rest easy when it comes to vehicle
reliability, but if any of the new trucks do require
maintenance, the city doesn't have to worry about
paying for it. In a sense, Macon gets paid to wear out
its trucks!
How does
this - selling brand-new trucks only to turn around
and pay to fix them - constitute a "win" for McNeilus?
"Since all of them are new, there's not a whole bunch
of maintenance to be done on the trucks," explains White.
In addition,
no longer operating unpredictable trucks allows White
and his crew a "great deal of uptime" and increases
productivity. "We stay out on routes longer now because
the trucks are larger - 25-yard, high-compaction trucks
- which means they don't have to come into the landfill
as often as the smaller trucks. And we went from working
5 or 6 hours a day with the large number of trucks we
had to working 10 hours a day. Even though [collectors]
worked 6 hours, [they] still got paid for 10 hours.
So we were able to eliminate the additional routes and
save the city money as well through personnel reductions."
Regarding his satisfaction with the new system, White
relates that McNeilus has been "very attentive as
far as service is concerned. The trucks are mechanically
well built, especially the compactors." To supplement
the rearloaders, Macon purchased three McNeilus automated
trucks. In the midst of a pilot automation collection
study, the city, with White's help, might make another
transformation in the coming years’Äîto strictly automated
collection systems. "We came up with a creative financing
method through the Georgia Municipal Association, which
allows us to pay for the trucks over three years. The
beautiful thing about this is the buyback program. McNeilus
[gave] us a buyback price, and if we decide to replace
all 20 of those trucks, that buyback price will go toward
the purchase of 20 new trucks in three years. Eventually
it will be a program that pays for itself."
How does
this compare to leasing a car? According to White, it
is similar, "except that - after the three-year period,
I still own the trucks, so if I don't have the capital
to replace all 20, I can replace 10 at one time, and
[McNeilus] will give me a buyback price on 10, and then
the next year I can come back and replace the other
10."
If
Macon continues to benefit from the McNeilus transaction,
which has already saved the city more than $300,000,
it might not even need to replace the trucks after three
years of wear. "It's too early in the ballgame,"
White concludes. "The trucks are holding up so well.
The expected useful life of a garbage truck ranges from
five to seven years, so you don't want to get beyond
that scope, but it would be great at the end of the
three years if we could trade all 20 of them in and
get the higher buyback price toward the next 20 trucks
that we buy."
MSW
- May/June 2004
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