MEMORANDUM

To:       Charles Soules

            Public Works Director

From:   Steve Stewart

            Central Garage Supt.

Re:       hybrid vehicles and alternative fuels report

Date:    April 1, 2004

The following is provided in response to Commissioner Schauner’s request for additional information on the performance of our hybrid vehicles and our experience with alternative fuels.

Hybrid Vehicles

Inventory

We have three Toyota Prius hybrid sedans in the fleet. One unit assigned to city hall as a staff car (unit 800). The other two (units 830 and 844) are used in building inspections for the zoning inspectors.

Miles driven in 2003

Unit 800 1,021

Unit 830 6,659

Unit 844 5,419

Total miles for the Prius hybrids in 2003:           13,099.

Total miles for flex fuel vehicles in 2003:            81,748

Total miles for entire fleet:                                 3,103,377

Note: As a fleet we drove 25,165 miles less in 2003 than in 2002.

Mileage

Mileage for the three hybrids has been lower than EPA ratings. The EPA rating is 51 mpg in town driving. 2003 was our first full year of operation and miles per gallon average was only 34.72 as a group. As with any vehicle the mileage will increase as the vehicle loosens up and the drivers become more accustom to the vehicle. The average mileage for the first three months of this year is 43.019.

The mileage numbers we are seeing are in line with fleet reports received from cities and counties around the country.  I have been pleased with the results we have seen and the total cost of operation for the hybrids is considerably lower than other units. Fuel cost per mile of operation has been 4 cents compared to fuel costs per mile of 7 cents for the average midsize sedan in the fleet. The Prius cost is around $4,000.00 higher than a Taurus or a Malibu. Over the course of the three-year warranty period we will recoup most, if not all, of this expense. The Toyota warranty includes all routine maintenance.

Additional Information

Incentives are in place for individuals to offset the increased cost of purchasing hybrid vehicles. The hybrid market will soon be expanding into larger vehicles. Ford will be offering an SUV, as will Lexus and Toyota. General Motors is working on hybrid pickup trucks.

 We are also following the progress of Mack and Freightliner hybrid heavy vehicle research. New developments in hydraulic braking and acceleration assists are also showing impressive fuel economy numbers. When these systems go into production they should greatly improve the fuel consumption in solid waste and dump trucks.

Alternative Fuels

In 2001 we did a pilot program with the Kansas Corn Growers Association. E-75 was the fuel used in this pilot. We compared fuel consumption and cost of operations for the flex fuel vehicles in our fleet. E-75 is a winter blend of the 75% alcohol and 25% gasoline. We currently have fourteen vehicles in the fleet that will operate on fuels up to 85% alcohol. These vehicles will operate unleaded gasoline as well. The flex fuel option has been cost free.

We are currently looking at E-10. This fuel will work in any gasoline engine. We have purchased it when the costs are in line with standard unleaded. Ethanol replaces MTBE as an octane booster and does not contribute to ground water contamination.  We are comparing fuel mileage and engine performance between the fuels.

We are also evaluating biodiesel (B-20) information. Several fleets in the region are using or testing this fuel. Most have had good results. They are providing us with data and cost information.

As the infrastructure for alcohol fuels expands the cost will decline. Tax incentives are now in place for private fleets and individuals. These incentives make it possible for an individual to purchase E-85 cheaper than gasoline.