RECOMMENDATION:
THAT
the staff report entitled “Fleet Services – Green Fleet Transition Plan
2004-2007”, dated
November 22nd, 2004, be received;
AND
THAT Council adopt in principle the Fleet Services - Green Fleet Transition
Plan 2004-2007, as outlined within this report, to guide green fleet management
actions for the Town of Markham, and that capital funding of $27,600 be
considered during the 2005 Capital budget discussions, to cover the cost of
installation of two Vehicle Refuelling Appliances;
AND
THAT the Fleet Services - Green Fleet Transition Plan 2004-2007, as outlined
within this report, be aligned with the Fleet maintenance program and increase
funding in the Fleet Operating Budget to include the additional annual cost of
using Biodiesel in all diesel fleet vehicles (approximately $20,000/year based
on the current fuel usage and price premium of $0.06 per litre);
AND
THAT the existing 2004 Fleet Services Vehicle Replacement Program be revised to
upgrade
current vehicle specification to Diesel configurations and completed prior to implementing the Green Fleet Transition Plan
2004-2007;
AND
THAT the additional funding required to implement upgrades to five (5) one-ton
flatbed trucks in 2004 (estimated at $32,500) be provided from existing
favourable variances in the 2002 Capital Budget account for Fleet Replacement
(existing balance approximately $33,730);
AND
THAT the additional funding required to implement upgrades to eight (8)
vehicles to alternative ‘Green Fleet’ vehicles in 2005 (estimated at $57,266)
be absorbed in the proposed 2005 Capital Budget account for Fleet Replacement;
AND
THAT the Director of Operations and Asset Management provide an annual progress
report to the Finance and Administrative Committee on the implementation of the
Green Fleet Transition Plan 2004-2007, including progress on environmental
benefits and targets.
PURPOSE:
The purpose of this report is to inform Council about the Fleet Services
Green Fleet Transition Plan for 2004-2007 and to outline the costs required to
implement this plan.
EXECUTIVE
SUMMARY:
The Fleet Division of
Operations and Asset Management are responsible for more than 600 licensed
vehicles and equipment units including Fire and Emergency Service vehicles and
apparatus. The Green Fleet Transition Plan
will be developed to reduce the carbon dioxide greenhouse gas emission output
of the Town’s fleet, and significantly reduce other forms of pollutants over
the three-years of the Plan and future years.
The Plan is affordable, sustainable, renewable, and has the capacity to
contribute to economic growth and development by promoting the use of
alternative fuels, hybrid-electric and natural gas vehicles.
BACKGROUND:
During the 2004 budget
process, Town of Markham Council directed staff to consider how to integrate a green fleet transition
plan into the Vehicle Replacement Plan, and report back to Council prior to
spending over 50% of the 2004 Vehicle Replacement Capital Budget.
OPTIONS/DISCUSSION:
City of Toronto Green Fleet Transition Plan
In May 2004, the City of Toronto
endorsed their Green Fleet Transition Plan and circulated the Plan to all GTA
municipalities (see Appendix A). The
proposed Town of Markham Green Fleet Transition Plan 2004-2007, outlined within
this report, uses a similar approach to the City of Toronto’s
Plan since the City of Toronto and the Town of Markham have been testing the same technologies and have had similar
experiences and successes. Markham’s
Green Fleet Transition Plan includes opportunities to enhance the existing 2004
vehicle replacement program.
Town of Markham
Fleet Services Green Fleet Transition Plan 2004-2007
The Markham Green Fleet
Transition Plan 2004-2007, builds on the success of the Hybrid Electric Vehicle
(HEV) and Biodiesel program and advances the implementation of alternative
fuels in the Town’s passenger fleet by outlining a detailed implementation plan
that includes costs and environmental benefits for the next three years. Based on research and discussions with
industry, the Green Fleet Transition Plan recommends increasing the use of HEVs
and Biodiesel and adds Natural Gas and bi-fuel (use of natural gas and
gasoline) technology.
The Green Fleet Transition Plan 2004-2007 will be integrated with other
strategic corporate initiatives being carried out at the present time. For example, the Environmental Management
Plan and Council’s Clean Air Commitments will be informed by the Green Fleet
Transition Plan and will advance the Green Fleet policy beyond 2006. In addition, the Green Fleet Transition Plan
is consistent with Council’s Strategic Priorities around improving
environmental management, as approved by Council in 2004, as well as the Town’s
commitment to a green procurement policy which considers proactive
environmentally sustainable alternatives.
The Green Fleet Transition
Plan will help to reduce the carbon dioxide (CO2) output and other air pollutants from the Town’s fleet thereby helping
to reduce smog and greenhouse gas emissions.
The Green Fleet Transition
Plan also includes efficiency measures in addition to the acquisition of
alternative fuel technologies, including recommendations to downsize vehicles
where possible, include minimum fuel efficiency standards, and proactive
vehicle maintenance.
Efficiency is an important part of the Green Fleet
Transition Plan and Fleet Services has an ongoing commitment through vehicle
and equipment acquisition and specification development to seek out
efficiencies through right-sizing specifications with departmental
clients. This includes optimizing engine
sizes, vehicle weights, outfitting and standardizing fleet specifications
across departments.
Proven technologies and methods are available at a low
cost today, and are included in the Green
Fleet Transition
Plan. For example, low sulphur diesel
fuel and fuels containing low NOx additive are now part of the criteria being
used in the tenders for gasoline and diesel purchases along with ongoing driver
training with respect to reduced vehicle and equipment idling.
Hybrid
Electric Vehicle (HEV) Pilot Project Data
In
2002, the Clean Air Working Group recommended to Council that a hybrid vehicle
pilot project be established. In 2003, Markham
acquired two hybrid electric vehicles, a Toyota Prius and a Honda Civic that
were placed in full time use with the Corporate Courier, Parking Control and
Community and Fire Services, respectively.
The performance of the hybrid electric vehicles (HEVs) has been
excellent and they have integrated very well into the Town’s fleet operation.
The
tables in Appendix ‘B’ identify the average operating cost of the hybrids as
compared to the current Chevrolet Cavalier models that have been used in the
fleet operation.
Based
on the data comparison on the vehicle types and in the current fleet operating
conditions the HEV average 7.3L / 100km and the Cavaliers average 11.8L /
100km, a fuel savings of approximately 38.2 % is realized with HEVs.
Alternative
Fuels
In
2002 and 2003, the Town participated in a low-sulphur fuel tender co-operative
with York Region and incorporated low-sulphur fuel into all licensed fleet
vehicles. In 2003, the Town of Markham
began using Biodiesel in its off-road fleet of vehicles. A B50 blend (that is,
fifty per cent Biodiesel, fifty per cent low sulphur diesel) was used for the
summer and in the fall. The performance
of the Biodiesel was without significant complications until the weather began
to cool down. Significant driveability problems were encountered such as fuel
filters plugging up, equipment stalling out on the road and lack of power as
the fuel gelled.
Fleet
Services will continue to use Biodiesel in 2004 but at a B20 blend (twenty
percent Biodiesel and eighty percent low sulphur diesel) as this blend is
better suited to the local climate conditions. In consultation with our fuel
supplier, Bio Diesel Canada, B20 is the preferred choice of the municipalities in the GTA.
2005
Estimated Town-wide Biodiesel Implementation
As
part of the Green Fleet Transition Plan, implementing B20 Biodiesel fuel in all
town fuel sites would have an increased annual cost of approximately $20,000
based on the current fuel usage and price premium of $0.06 per litre.
Financial/environmental
discussion: cost of existing vehicle replacement plan vs. green fleet
transition plan, gas savings for GFTP, emissions savings/offsets for NG and
Biodiesel and low-sulphur fuels, total cost for implementing the GFTP per year.
Natural Gas
Natural gas vehicles are restricted to only two
light-duty pickup truck models and two cargo van
models. Demand
for these models has not yet reached a sustainable economic level and thus
manufacturers are re-evaluating their commitment to
this technology. For example, starting
in 2004, Ford has discontinued production of its natural gas pick-up trucks.
Natural gas implementation as an alternate fuel will
have some capital cost implications.
There is currently no local natural gas refuelling stations or natural
gas vehicle repair facilities in the Town of Markham. Therefore VRAs (vehicle refuelling
appliances) will need to be installed at town facilities. The fact that these units are classed as slow
fill or overnight fill could result in operational issues limiting the vehicles
that this would efficiently work on.
Fuel savings would be realized based on the current natural gas pricing.
The table below is an example of the cost of two VRA
units that could be installed at the Miller Avenue shop allowing the
slow fill overnight fill of four natural gas-powered vehicles.
|
VRA
|
No. of Units
|
Cost
|
|
FMQ2.5
single compressor
|
2 (4 hoses to fill 4 vehicles)
|
$27,600
|
Estimated Costs of Alternative Fuels
The chart below describes the low sulphur diesel fuel usage for 2003
along with the additional costs required to replace the use of the low sulphur
diesel with a B20 Biodiesel blend.
Based on July 2004 fuel prices, the chart below
identifies the cost of each proposed fuel:
|
Regular
unleaded Gasoline
|
$0.71 / L
|
|
Low Sulphur Diesel Fuel
|
$0.60 / L
|
|
B 20
Biodiesel Fuel
|
$0.66 / L
|
|
Natural
Gas
|
$0.59 / L
|
Estimated Existing Fuel Usage and Cost*
|
Year
|
Fuel
Type
|
Volume
|
Cost/L
|
Total
|
|
2004
|
Low
Sulphur Diesel
|
330,988 L
|
$0.60
|
$198,593
|
|
2005
|
Low
Sulphur
B
20 Biodiesel
|
330,988L
|
$0.66
|
$218,452
|
*price based on July 2004 fuel pricing
Implementing the Green Fleet Transition Plan
Appendix C details the Fleet Division’s estimated
additional costs to implement the Town’s Green Fleet Transition Plan.
The additional funds identified in Appendix C will
need to be considered in the 2005 budget review process and added to the
current vehicle replacement program in order to upgrade current vehicle
specification to HEV, NG or Diesel configurations.
Proposed Green Fleet Upon
Completion of 2004-2007 Green Fleet Program*
|
Year
End
|
Gas
Powered
Inventory
|
Diesel
Powered
Inventory
|
Hybrid
HEV
Inventory
|
Natural
Gas
Inventory
|
Total
Year End
Units
|
Percentage
Of
Fleet ‘Green’
|
|
2003
|
116
|
42
|
2
|
|
160
|
27.5 %
|
|
2004
|
111
|
47
|
2
|
|
160
|
30.6 %
|
|
2005
|
103
|
51
|
4
|
2
|
160
|
35.6 %
|
|
2006
|
94
|
53
|
7
|
6
|
160
|
41.3 %
|
|
2007
|
89
|
53
|
12
|
6
|
160
|
44.4 %
|
* Number of Fleet Units based on current licensed units only
Conclusion
The Green Fleet Transition Plan 2004-2007 outlines an implementation
schedule for moving the Town’s fleet towards vehicles and fuel technologies
that have less environmental impact and lead to greater efficiency. As other Town strategic initiatives, such as
the Environmental Management Plan move forward, recommendations for how Markham can
develop its green fleet further into the future will be included. The Green Fleet Transition Plan 2004-2007
will also help communicate the Town’s environmental priorities to the community,
to industry and to other levels of government responsible for improving
alternative fuel technologies.
The Fleet Division’s continued commitment to green fleet alternatives
will continue to be a priority. Projects like the Tadger fuel device (Appendix
D) shows significant emission reductions in a very short period with minimal
cost. Currently, Fleet staff are
researching filtering units to add to engines that will aid in extending oil
drain intervals therefore reducing the environmental impact with respect to
waste oils. Commitment to environmental
leadership will require the approved funding to allow this to be successful
without a negative impact to the already stretched operating budget for the
current fleet complement. The proposed three year plan
demonstrates the Operations and Asset Management Department’s commitment to a
green procurement policy which considers proactive environmentally sustainable
alternatives.
Corporate support for enhanced technician training will also need to be
considered as part of this plan to keep up with technological changes to
vehicle and equipment and to continue to provide fleet customers with excellent
customer service.
FINANCIAL
CONSIDERATIONS:
The total Capital cost to implement the Fleet Services Green Fleet
Transition Plan 2004-2007 is $250,398, which includes provisions to upgrade
twenty-seven conventional cars and trucks to alternative vehicles ($222,798),
as well as the installation of a new natural gas refuelling station ($27,600).
Additional
funding estimated at $32,500 will be required to implement upgrades to five (5)
one-ton flatbed trucks that are included in the 2004 Fleet Replacement
Program. This funding may be provided
from existing favourable variances in the 2002 Capital Budget account for Fleet
Replacement (existing balance approximately $33,730). There are no other opportunities to implement
green fleet upgrades in the 2004 Fleet Replacement Program.
The 2005 Capital costs (which are not included in the 2005 Capital
Budget proposal) would include $57,266 (see Appendix C) for the upgrade of 8
vehicles (which is to be funded through the 2005 Fleet Replacement Program),
plus $27,600 for the capital cost of the VRA. The 2005 additional Operating funding required
to implement Biodiesel in all diesel fleet vehicles is estimated at $20,000 per
year.
The following tables identify the existing replacement
vehicle costs and breaks out the Green Fleet replacement costs for the
2004-2007 Plan:
2004 – 2007 Fleet Replacement Costs Plus
Additional Costs of Green Fleet
|
Year
|
Total Number
Of Units
|
Base
Budget Cost
(no hybrid or
alternate fuel)
|
Green
Units Included in Column 2
|
Additional
Cost of Green Upgrade
(see Appendix
C)
|
Total Budget
Required
|
|
2004
|
14
|
$937,900
|
5
|
$32,500
|
$970,400
|
|
2005
|
25
|
$495,000
|
8
|
$57,266
|
$552,266
|
|
2006
|
31
|
$1,108,000
|
9
|
$59,532
|
$1,167,532
|
|
2007
|
11
|
$387,000
|
5
|
$73,500
|
$460,500
|
|
Total
|
81
|
$2,927,900
|
27
|
$222,798
|
$3,150,698
|
|
VRA
|
No. of Units
|
Cost (2005)
|
|
FMQ2.5
single compressor
|
2 (4 hoses to fill 4 vehicles)
|
$27,600
|
The
additional cost of using Biodiesel in all diesel fleet vehicles is $20,000/year
based on the current fuel usage and price premium of $0.06 per litre.
BUSINESS UNITS
CONSULTED AND AFFECTED:
Corporate Services Commission
Community and Fire Services Commission
ATTACHMENTS:
Appendix A – City of Toronto’s Green Fleet Transition Plan 2004-2007
Appendix B – Average Operating Costs Hybrids vs. Cavaliers
Appendix
C – Estimated Additional Cost to Alternative Vehicles
Appendix D – Tadger Test Results
|
Peter Loukes, Director, Operations and Asset
Management
|
|
Jim Sales, Commissioner Community & Fire
Services
|
Q:\Commission Share\Operations and Asset
Management\Reports\2004\Operations\Green Fleet Transition Report 9 20 04 -
Paul.doc
Appendix B – Average
Operating Costs Hybrids vs. Cavaliers
CAVALIER
UNIT #6093
|
SUMMARY TOTALS
|
YEAR-TO-DATE
|
LIFE-TO-DATE
|
|
TOTAL PARTS + LABOR
|
642.17
|
1055.68
|
|
TOTAL FUEL (COST)
|
698.41
|
1950.86
|
|
TOTAL PARTS + LABOR + FUEL
|
1340.58
|
3006.54
|
|
TOTAL KM USAGE
|
9680.00
|
27773.00
|
|
COST PER KM - PARTS+LABOR
|
0.07
|
0.04
|
|
COST PER KM - PARTS+LABOR+FUEL
|
0.14
|
0.11
|
|
TOTAL FUEL (QTY)
|
1096.40
|
3062.60
|
|
KM PER FUEL UNIT
|
0.11
|
0.11
|
CAVALIER
UNIT #6094
|
SUMMARY TOTALS
|
YEAR-TO-DATE
|
LIFE-TO-DATE
|
|
TOTAL
PARTS + LABOR
|
115.70
|
885.01
|
|
TOTAL
FUEL (COST)
|
583.69
|
2051.70
|
|
TOTAL
PARTS + LABOR + FUEL
|
699.39
|
2936.71
|
|
TOTAL KM
USAGE
|
7119.00
|
25300.00
|
|
COST PER
KM - PARTS+LABOR
|
0.02
|
0.03
|
|
COST PER
KM - PARTS+LABOR+FUEL
|
0.10
|
0.12
|
|
TOTAL
FUEL (QTY)
|
916.30
|
3220.90
|
|
KM PER
FUEL UNIT
|
0.13
|
0.13
|
CAVALIER
AVERAGE
|
AVERAGE
TOTAL PARTS+LABOR
|
970.35
|
|
AVERAGE
TOTAL PARTS+LABOR+FUEL
|
2971.63
|
|
AVERAGE
TOTAL FUEL (QTY)
|
3141.75
|
|
AVERAGE
KILOMETERS
|
26536.5
|
|
AVERAGE
COST PER KILOMETER
|
0.118
|
HONDA
HYBRID UNIT #5133
|
SUMMARY TOTALS
|
YEAR-TO-DATE
|
LIFE-TO-DATE
|
|
TOTAL
PARTS + LABOR
|
115.48
|
841.91
|
|
TOTAL
FUEL (COST)
|
198.08
|
1340.79
|
|
TOTAL
PARTS + LABOR + FUEL
|
313.56
|
2182.70
|
|
TOTAL KM
USAGE
|
4100.00
|
25652.00
|
|
COST PER
KM - PARTS+LABOR
|
0.03
|
0.03
|
|
COST PER
KM - PARTS+LABOR+FUEL
|
0.08
|
0.09
|
|
TOTAL
FUEL (QTY)
|
311.00
|
2104.90
|
|
KM PER
FUEL UNIT
|
0.08
|
0.08
|
TOYOTA HYBRID UNIT #5134
|
SUMMARY TOTALS
|
YEAR-TO-DATE
|
LIFE-TO-DATE
|
|
TOTAL
PARTS + LABOR
|
352.96
|
737.34
|
|
TOTAL FUEL
(COST)
|
589.66
|
1325.92
|
|
TOTAL
PARTS + LABOR + FUEL
|
942.62
|
2063.26
|
|
TOTAL KM
USAGE
|
14502.00
|
31320.00
|
|
COST PER
KM - PARTS+LABOR
|
0.02
|
0.02
|
|
COST PER
KM - PARTS+LABOR+FUEL
|
0.06
|
0.07
|
|
TOTAL
FUEL (QTY)
|
925.70
|
2081.50
|
|
KM PER
FUEL UNIT
|
0.06
|
0.07
|
HYBRID
AVERAGE
|
AVERAGE
TOTAL PARTS+LABOR
|
789.63
|
|
AVERAGE
TOTAL PARTS+LABOR+FUEL
|
2122.98
|
|
AVERAGE
TOTAL FUEL (QTY)
|
2093.2
|
|
AVERAGE
KILOMETERS
|
28486
|
|
AVERAGE
COST PER KILOMETER
|
0.073
|
Appendix C – Estimated Additional Cost to Alternative
Vehicles
Existing 2004 –
2007 Vehicle Replacement Costs
|
Year
|
Number of Units
|
Cost
|
|
2004
|
14
|
$937,900
|
|
2005
|
25
|
$495,000
|
|
2006
|
31
|
$1,108,000
|
|
2007
|
11
|
$387,000
|
Green Fleet Transition Plan Vehicle Costs Expanded - Including
Alternative Vehicles
|
Year
|
Vehicle type
|
Capital Cost
Upgrade
|
Total Cost
|
|
2004
|
5 diesel powered 1 tons
|
1 Tons $6,500/ea
|
$32,500
|
|
2005
|
2 hybrid vehicles (pickup/car)
4 diesel powered 1 tons
2 NG vans ($6883 less $4000 each)
|
Car $16,000/ea
Pickup $9,500/ea
1 Tons $6,500/ea
2 NG Vans $2,883/ea
Total
|
$16,000
$
9,500
$26,000
$
5,766
$57,266
|
|
2006
|
3 hybrid vehicles ( 2 pickups 1
car)
2 diesel powered 1 tons
4 NG vans ($6883 less $4000 each)
|
Car $16,000/ea
Pickups $9,500/ea
1 Tons $6,500/ea
4 NG Vans $2,883/ea
Total
|
$16,000
$19,000
$13,000
$11,532
$59,532
|
|
2007
|
5 hybrid vehicles ( 1 pickup 4
cars)
|
Cars $16,000/ea
Pickup $9,500/ea
Total
|
$64,000
$
9,500
$73,500
|
|
VRA
|
No. of Units
|
Cost (2005)
|
|
FMQ2.5
single compressor
|
2 ( 4 hoses to fill 4 vehicles)
|
$27,600
|
Appendix D – Tagder Test Results
