Business Transformation and Green Fleet Achievements. City of Sacramento

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1 Business Transformation and Green Fleet Achievements City of Sacramento

2 The Problem - Bridge the Budget Gap The City faced a projected $35 to $40 million deficit beginning next fiscal year. The projected shortfall represented the need to reduce the $237 million net General Fund operating costs by 20 percent. The City had already made significant budget cuts, implemented consolidations, and negotiated labor concessions.

3 Where to Start? Needed to Establish: Initial baseline of operational metrics Standardization of maintenance practices Ability to report/measure progress Ability to push out data to City Staff Required upgrade of Operational Tool Kit

4 The Approach Develop a Clear Strategy The Right People and Systems Appropriate Tactics Structured Work Priorities through planning and scheduling Maintenance Optimization Best Fleet Management Practices

5 Business Plan Establishing our Goals: Goal 1. Establish Remote Fleet Analytics Monitoring Tools Goal 2. Expand Alternative Fueling Infrastructure & Fueling Options Goal 3. Expand Alternative Fuel Vehicle Purchases (>30%) Goal 4. Implement Plug In Electric Vehicles in the City Motor Pool Goal 5. Implement a Comprehensive Asset Management Planning System Goal 6. Establish Long Term Fleet Sustainability Policy & Goals Goal 7. Establish Citywide EV Readiness Policy Goal 8. Implement Condition Based Preventative Maintenance Process Goal 9. Maximize Use of Fleet/Equipment Citywide (Fleet Utilization) Goal 10. Top 5 Best Government Fleets in North America

6 NAPA IBS Procurement Sourcing Elimination of management of over 100 City P.O. s Delivery service provided to all City locations to increase shop productivity Fewer deliveries = reduced VMT=reduced GHG

7 Projected Cost Savings IBS $1.8 million annually Purchase Order Cost Savings Shop Productivity Savings Napa Parts Cost Savings Rebates on Purchases Vendor Management Cost Savings Inventory Carrying Cost Savings Inventory Obsolescence Savings Core Return Savings

8 Fleet Business Intelligence (FBI) Share insights & Making Information Available Transparency Synergy

9 Staff Information Provide actual performance Metrics on the Shop Floor for more interaction

10 Employee Score Card

11 FBI Total Cost of Ownership (TCO)

12 Local Motion Plug In Car Share Tap & Go online reservation system Reservation via Mobile app Making reservation is an option not a requirement No key manager required GPS trip data Reports charger level Easy access Collects telematics data

13 Petroleum Reduction From year 2003 to 2014 total overall petroleum consumption dropped by 34% (Reduction in unleaded by 21% and Diesel by 51%)

14 Renewable Natural Gas Project Renewable Natural Gas Project Page 14

15 Renewable Natural Gas Project for Fuel Comparison of Diesel to LNG (example) DIESEL FUEL 1,000,000 GGE $3.73/gal = $3.28/GGE Fuel Cost $3,280,000 MTCO2 10,790 Fuel Savings $0 LNG 1,000,000 GGE $1.50/gal = $2.30/GGE Fuel Cost $2,300,000 MTCO2 4,462 Fuel Savings $980,000 Renewable LNG 100% 1,000,000 GGE $1.32/gal = $2.03/GGE Fuel Cost $2,030,000 MTCO2 1,079* Fuel Savings $1,250,000 Page 15 * estimate

16 This CNG Sweeper Truck displaces 24,890 gallons of petroleum over 10 years Reduces Green House Gas(GHG) tailpipe emissions by 39 Short Tons over 10 years Saving taxpayers $3K per year Projected total savings of $30K over life of the vehicle *GHG calculations based on Argonne National Laboratory's AFLEET Model

17 This CNG Sewer Vacuum Truck displaces 34,840 gallons of petroleum over 10 years Reduces Green House Gas(GHG) tailpipe emissions by 54 Short Tons over 10 years Saving taxpayers $4K per year Projected total savings of $43K over life of the vehicle *GHG calculations based on Argonne National Laboratory's AFLEET Model

18 This CNG Garbage Truck displaces 95,414 gallons of petroleum over 10 years Reduces Green House Gas(GHG) tailpipe emissions by 148 Short Tons over 10 years Saving taxpayers $12K per year Projected total savings of $116K over life of the vehicle *GHG calculations based on Argonne National Laboratory's AFLEET Model

19 This CNG Asphalt Truck displaces 26,620 gallons of petroleum over 10 years Reduces Green House Gas(GHG) tailpipe emissions by 41 Short Tons over 10 years Saving taxpayers $3K per year Projected total savings of $32K over life of the vehicle *GHG calculations based on Argonne National Laboratory's AFLEET Model

20 Sacramento County Green Fleet Planning Efforts Underway Replace 36 aging LNG Refuse trucks with new CNG trucks. Evaluate expanding NG usage beyond Refuse Trucks Slow Fill/Fast Fill CNG Station to open June, 2015 Clean Energy s New Emissions Calculator Page 20

21 Sacramento County Green Fleet Planning Efforts Underway Pursuing California s Enhanced Vehicle Incentive Program for Public Fleets for up to 30 plug in and fuel cell vehicles. Exploring demonstration projects for use of renewable diesel that recently became available in Sacramento Provides 60% reduction in carbon vs. diesel Recently notified of CEC Grant Project award to TransPower in partnership with Sacramento County to demonstrate 2 electric refuse trucks. Page 21

22 Contacts Keith Leech Chief, Fleet Division & Parking Enterprise Sacramento County

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