101006 FUEL BUDGET DRIVER (2)Fuel and Energy
Fuel and Energy
Budget Drivers
Budget Drivers
FUEL & ENERGY BUDGET
FUEL & ENERGY BUDGET
DRIVERS
DRIVERS
PURPOSE:Awareness and Information
PURPOSE:Awareness and Information
BACKGROUND:Trends
BACKGROUND:Trends
ISSUES:
ISSUES:
RESPONSE:
RESPONSE:
FY 2008 Major Categories
FY 2008 Major Categories
$863.5M
$863.5M
Reserves
8%
Debt Service
$72M*
* Includes $45.8M =
11%
rollover compensation
$299M
$95M
Capital
$6M
1%
Personnel
45%
$392M
$299M
Operations
35%
ReservesPersonnelOperationsCapitalDebt Service
FY 2008 City Operations
$
299.2M
Land Structures, 1%
Leases & Rentals, 2%
Other, 7%
Capital Projects, 16%
Supplies, 8%
Depreciation / Bad Debt, 0%
Tax Exempt Programs, 3%
Contrib. Health Dept. & HRT,
3%
Professional Travel, 1%
Telecommunications, 1%
Postal Services, 1%
Contractual Services, 34%
Water & Sewer Services, 9%
Fuel, 2%
Natural Gas &
Heating, 1%
Electrical Services,
4%
Internal Services, 9%
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
TRENDS
TRENDS
Growth in cost has been from increased cost
Growth in cost has been from increased cost
of oil
of oil
Usage in total reflects little change
Usage in total reflects little change
Oil prices have declined in recent weeks
Oil prices have declined in recent weeks
Use of alternative fuels
Use of alternative fuels
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
BACKGROUND AND TRENDS
BACKGROUND AND TRENDS
Fuel –Gasoline and diesel fuel for fleet
Fuel –Gasoline and diesel fuel for fleet
City currently utilizes small numbers of
City currently utilizes small numbers of
Compressed natural gas (5)
Compressed natural gas (5)
Hybrids (8)
Hybrids (8)
Electric (1)
Electric (1)
City fleet size
City fleet size
20013,735
20013,735
20063,789
20063,789
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
4,000,000$5,500,000
3,800,000
$5,000,000
3,600,000
$4,500,000
3,400,000
$4,000,000
3,200,000
Gallons Dispensed
3,000,000$3,500,000
Total Charges
2,800,000
$3,000,000
2,600,000
$2,500,000
2,400,000
$2,000,000
2,200,000
2,000,000$1,500,000
2001/022002/032003/042004/052005/06
Gallons 2,146,803 2,329,632 2,548,242 2,420,452 2,282,449
Cost $2,054,173 $2,623,038 $3,098,960 $3,911,821 $5,049,351
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
ISSUES
ISSUES
Unpredictability of oil market
Unpredictability of oil market
New fuels not necessarily proven or easily
New fuels not necessarily proven or easily
available
available
Continuous review of operational practices
Continuous review of operational practices
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
RESPONSE
RESPONSE
Automotive Services Customer Advisory Group reviews
Automotive Services Customer Advisory Group reviews
operational practices
operational practices
Group to review utilization of vehicles
Group to review utilization of vehicles
Possible fuel savings
Possible fuel savings
Reduced replacement cost
Reduced replacement cost
Goals for usage –City/Departments
Goals for usage –City/Departments
FUEL AS BUDGET DRIVER
FUEL AS BUDGET DRIVER
RESPONSE Continued
RESPONSE Continued
Purchasing hybrids; expect to expand in future; life cycle cost
Purchasing hybrids; expect to expand in future; life cycle cost
Follow experience of other cities in use of other fuels (eg
Follow experience of other cities in use of other fuels (eg
biodiesel) for one year before recommending actions
biodiesel) for one year before recommending actions
Options for purchasing practices
Options for purchasing practices
Fuel efficiency ratings
Fuel efficiency ratings
Crash impact studies
Crash impact studies
OPIS pricing for fuel
OPIS pricing for fuel
ENERGY AS A BUDGET
ENERGY AS A BUDGET
DRIVER
DRIVER
THREE MAJOR TYPES OF ENERGY USED
THREE MAJOR TYPES OF ENERGY USED
Excludes gasoline, other fuels
Excludes gasoline, other fuels
Electricity
Electricity
Natural gas
Natural gas
Heating oil
Heating oil
ENERGY AS A BUDGET
ENERGY AS A BUDGET
DRIVER
DRIVER
SCOPE
SCOPE
Square footage of City buildings
Square footage of City buildings
19901,539,553
19901,539,553
20063,296,466
20063,296,466
ENERGY AS A BUDGET
ENERGY AS A BUDGET
DRIVER
DRIVER
Age of buildings
Age of buildings
0-10 Yrs, 45
> 30 Yrs, 134
11-20 Yrs, 63
21-30 Yrs, 37
0-10 Yrs11-20 Yrs21-30 Yrs> 30 Yrs
EFFECTS OF ELECTRICTY
EFFECTS OF ELECTRICTY
DEREGULATION
DEREGULATION
FY 2007/08:
FY 2007/08:
BudgetRevised NeedIncrease
Buildings$3.8M$4.8M$1.0M
Street Lights$5.1M$5.9M$0.8M
Pump Stations$1.8M$2.1M$0.3M
$2.1M
FY 2011/12:
FY 2011/12:
Total Deregulation Implemented
Total Deregulation Implemented
Expected 50% +/-Increases
Expected 50% +/-Increases
ENERGY AS A BUDGET
ENERGY AS A BUDGET
DRIVER
DRIVER
Electricity
Electricity
150$5.0
$4.8
140
$4.6
130
$4.4
120
KWH (in millions)
Cost (in millions)
$4.2
110
KWH (in millions)
$4.0
Cost (in millions)
100
$3.8
90
$3.6
80
$3.4
70
$3.2
60$3.0
2000/012001/022002/032003/42004/52005/6
KWH 69.766.1 64.8 69.266.5 76.5
Cost $3.2 $3.5 $3.6 $3.6$3.7$4.2
ENERGY AS BUDGET
ENERGY AS BUDGET
DRIVER
DRIVER
Natural Gas
Natural Gas
$1,600
190
$1,400
170
$1,200
Decatherms (in thousands)
Cost (in thousands)
150
$1,000
Decatherms (in thousands)
Cost (in thousands)
130
$800
110
$600
90
$400
70$200
2000/012001/022002/032003/42004/52005/6
Decatherms73 92 99 9496 131
Cost $406 $520 $710 $797 $1,010 $1,481
ENERGY AS BUDGET
ENERGY AS BUDGET
DRIVER
DRIVER
Heating Oil
Heating Oil
140
120
100
Gallons (in
80
thousands)
Cost (in
60
thousands)
40
20
0
2000/012001/022002/032003/42004/52005/6
Gallons 125 75 89 896 0
Cost $100 $42 $97 $100 $18 $0
ENERGY AS BUDGET
ENERGY AS BUDGET
DRIVER
DRIVER
ISSUES
ISSUES
Many buildings not designed with energy
Many buildings not designed with energy
efficiency as goal
efficiency as goal
Many aging buildings
Many aging buildings
Growth in City facility space
Growth in City facility space
Volatile energy market
Volatile energy market
ENERGY AS BUDGET
ENERGY AS BUDGET
DRIVER
DRIVER
REPONSE
REPONSE
Taking long-term, sustainable approach
Taking long-term, sustainable approach
Looking closely at specs for new buildings
Looking closely at specs for new buildings
Energy audits
Energy audits
Energy conservation team/seek input
Energy conservation team/seek input
Seek funds to implement audit
Seek funds to implement audit
recommendations
recommendations
Promote energy awareness
Promote energy awareness
Lock in natural gas prices
Lock in natural gas prices
ENERGY AS BUDGET
ENERGY AS BUDGET
DRIVER
DRIVER
REPONSE
REPONSE
Standardize building temperatures/night
Standardize building temperatures/night
set-back
set-back
Improve control systems
Improve control systems
Ice storage/free cooling
Ice storage/free cooling
Double glaze windows
Double glaze windows
Equipment efficiencies
Equipment efficiencies
Questions
Questions