AgendaFleet Spend

Cost Per Mile

Fuel/Optimization Strategies

Maintenance

Capital

KPI’s

Fleet Spend

Cost Per Mile (CPM)Vehicle Type Purch Price MPG Fuel Cost Maint* Residual CPM** BM***

Fusion Sedan $ 21,000 19 $ 11,842 $ 8,887 $ 1,400 $ 0.40 $ 0.35

Escape FWD SUV $ 19,000 18 $ 12,500 $ 5,360 $ 2,600 $ 0.34 $ 0.37

Escape 4X4 SUV $ 21,000 17 $ 13,235 $ 8,215 $ 2,600 $ 0.40 $ 0.42 Escape 4X4 Hybrid SUV $ 27,000 25 $ 9,000 $ 6,448 $ 2,600 $ 0.40 $ 0.47

F150 4X2 Pickup $ 16,000 11.4 $ 19,824 $ 15,343 $ 1,700 $ 0.49 $ 0.40

F150 4X4 Pickup $ 22,347 10.7 $ 20,969 $ 16,336 $ 4,000 $ 0.56 $ 0.44 F250 4X4 Gas Pickup $ 25,000 8.18 $ 27,506 $ 20,078 $ 2,800 $ 0.70 $ 0.59 F250 4X4 Diesel Pickup $ 33,000 10.1 $ 22,388 $ 30,027 $ 4,500 $ 0.81 $ 0.68

E250 Cargo Van $ 22,000 11 $ 20,455 $ 5,331 $ 2,400 $ 0.45 $ 0.48

Average $ 22,927.44 $ 17,524.35 $ 12,892 $ 2,733 $ 0.51 $ 0.47

FuelAs Is

Consume 233K Gals of Fuel Annually (50% Unl/50% Dsl)Average vehicle MPG – 11.5 MPGAverage Idle Time Estimate – 25-50%

To BeConsider E10 and B20 when price is competitiveRightsize vehicle to improve overall CPM to include

MPG Example - Replaced 16 Pickups with SUV’s for a CPM

Reduction of .13 or $205K over their 100K Mile life.Green Driver Training/TrackingStay connected w/ JoCo AFV Strategies and partner

when appropriate

Fleet Optimization Strategies“Right Size” the vehicle to the Job Description

Green Driver Training/TrackingRate of Acceleration/DecelerationSpeeding/RPMIdle Time – KS Article 28-19-712

5 and 30 minute rules effective 6-25-10

Route Optimization – GPS?

Pooling excess depart fleet assets (18 Vehicles); AO Pool of 9 and TP Pool of 3 to be actively managed via Outlook and Ops Coordinator

AFV StrategiesBlended Fuels

B20 – 20% Biodiesel; Replace existing Diesel w/ Biodiesel; similar price, quality and performance; No need to change Fuel Farm or Vehicles; Fuel and Go.

E10 – 10% Ethanol; Replace existing Unleaded w/ E10; similar price, quality and performance; no change to Fuel Farm or Vehicles; Fuel and Go.

Propane – Cheap to purchase ($50K vs $500K) and maintain fuel station due to lower pressure (100-300 PSI vs. 5000 PSI for CNG); $10K Upfit w/ $5K Rebate; Currently $1.50 Per Gal vs. $2.25 Per Gal.

CNG – Expensive Fueling Station to own and operate; $1.00 Per Gal vs. $2.25 Per Gal.

Hybrids – 150K Mile ROI…Purchase price must come down to make sense at current fuel prices ($2.25).

MaintenanceAs Is –

10 RO’s Per Day 7 Repair 2 PM 1 Road Call – Jump Starts – Better Batteries and Less Draw

via LED’s/Battery BrainsTo Be –

8 RO’s Per Day 6 Repair 2 PM 0 Road Call

Better PM’s/Less Failures; New PM Sheets by Vehicle Type

Actively tracking Shop Productivity to include a 20% increase over the last 90 Days with no increase in Rework.

Sample PM Sheet

2010 Capital$600K Under Budget via:

Customer Cooperation and Flexibility!!Competitive RFQ via DemandStarQuoting both New and Lightly Used (With

Warranty)Seeking out New “Leftovers”; 2009’s and

2010’s.Benchmarking MACPP versus just using it

exclusivelyRightsizing where applicable; Pickups to SUV’s;

¾ Tons to ½ Tons

Rightsizing by the NumbersSedan (.40 CPM) to Front Wheel Drive SUV (.34 CPM) = .06

Less

2WD ½ Ton Pickup (.49 CPM) to Front Wheel Drive SUV (.34 CPM) = .15 Less

4WD ½ Ton Pickup (.56 CPM) to 2WD ½ Ton Pickup (.49 CPM) = .07 Less

¾ Ton Pickup Diesel (.81 CPM) to ½ Ton Pickup Gas (.56 CPM) = .25 Less

16 Vehicles “rightsized” in 2010 equating to a $205K O&M Savings over the next decade ($20K Per Year)

Fully Warranted Used Equipment = 20-40% Savings Over New

New Tapper = .25 CPM Savings

New Meter Reader = .15 CPM Savings

New CMVS Asst Mgr = .16 CPM Savings

Leftover Truck Examples = 15-30% Savings

KPI’sAs Is

CPM - .50CPH - $25PM Currency Estimate – 80%Mechanic Time Accountability – 81%Utilization – 8.7K Miles Per Year

To BeCPM - .40 (20% Reduction Target); Note ZFL_CPM

in SAP CPH - $20 (20% Reduction Target)PM Currency – 98%Mechanic Time Accountability – 85%Utilization – 10.5K Miles Per Year (20% Increase)

ZFL_CPM; Cost Per Mile Report

Summary

•People – Continued customer focus w/ a more diversified team.

•Fuel – Conserve the fuel we have and green fleet gradually.

•Maintenance – Optimize PM & Materials to reduce costly failures/downtime.

•Capital – Methodically evaluate requests to ensure we are optimizing these dollars.

•Lifecycle/Spec – Optimize Spec within current Lifecycle to reduce CPM/CPH.

•KPI’s – Continually track progress & make adjustments to ensure improved results.

Questions?