San Mateo County Grand Jury
• 2010-2011
San Mateo County’s Vehicle Purchase Program Issue | Background | Findings | Conclusions | Recommendations | Responses |
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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 10 findings
F1
The Board of Supervisors resolved in Resolution no. 069650 dated September 9, 2008 that “… all future [compact and midsize county] vehicle purchases will be hybrid models or other fuel-efficient models that are estimated by the manufacturer to achieve a minimum of 30 miles per gallon.”
No recommendations for this finding
F2
In the County of San Mateo FY 2010-2012 Recommended Budget for Vehicle and Equipment Services, a program objective was established to: “Increase the average fuel 2 economy to 30 miles per gallon by 2012 for midsize and compact vehicles…” This guideline was incorporated into the purchasing policies of Fleet Maintenance.
No recommendations for this finding
F3
There are conventional powered compact and intermediate sedans that meet California’s "green" designation and 30 miles per gallon (mpg) Environmental Protection Agency (EPA) estimate.3 These vehicles achieve the mileage and emission requirements established by the Board of Supervisors and are listed below: 2011 Conventionally Powered Models Chevrolet Honda Cobalt Cruze Malibu Civic Accord Fit Ford Toyota Fusion Focus Fiesta Camry Corolla Yaris
No recommendations for this finding
F4
In 2008, the San Mateo County Board of Supervisors resolved that 32 percent of vehicles purchased should be fuel efficient defined as Ultra Low Emissions Vehicle (ULEV), Partial Zero Emissions Vehicle (PZEV) or Zero Emissions Vehicle (ZEV).4
No recommendations for this finding
F5
The California Air Resources Board reports that “Gasoline vehicles meeting PZEV emission standards sometimes have even lower emissions than hybrid or alternate fuel vehicles”5. Honda, Ford, Toyota and Chevrolet have vehicles that are certified PZEV. These vehicles have four-cylinder conventional power trains and exceed 30 mpg fuel economy.
No recommendations for this finding
F6
Since 2002, the Public Works Department has purchased 200 compact sedans with a hybrid power train. All hybrid compact sedans purchased were either Toyota Prius or Honda Civic. In addition, 7 hybrid powered Ford Escape SUVs were purchased between model years 2007 through 2010.
No recommendations for this finding
F7
According to 2011 vehicle retail stickers, the base retail price of a Toyota Prius with hybrid system cost $7,280 more than a comparably-sized non-hybrid Toyota Corolla. The Honda Civic Hybrid cost $5,395 more than a non-hybrid Honda Civic LX.6 Federal Tax Credits are available for non-governmental buyers. Since the county does not pay income taxes, the credit is of no benefit. Based on standards established by California Assembly Bill 32 and the California Air Resources Board, 4 San Mateo County Board of Supervisors Resolution no. 069650 dated Sept. 9, 2008. Fact Sheet: 2003-11-04 California Environmental Protection Agency, Nov. 4, 2003. Dealerships visited were Putnam Toyota, Putnam Chevrolet, Mike Harvey Honda, and Towne Ford. Comparable Hybrid and Conventional Compact Models2 Toyota Conventional Hybrid Hybrid Cost Model Corolla Prius Over (Under) Base Price $ 16,520 $ 23,800 $ 7,280 EPA Mileage Range 26-35 mpg 51-48 mpg 25-13 mpg Engine Type PZEV PZEV n/a Honda Conventional Hybrid Hybrid Cost Model Civic LX Civic Over (Under) Base Price $ 18,555 $ 23,950 $ 5,395 EPA Mileage Range 25-36 mpg 40-43 mpg 15-7 mpg Engine Type PZEV PZEV n/a
Related Recommendations (2)
R1
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Commission a new study of the total cost of ownership, including depreciation, comparing hybrid and other alternative fuel vehicles with conventional “green” vehicles.
R2
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Utilize the results of the new study to revise, if necessary, the current vehicle purchasing policy. While there are many considerations, any decision should be based on a full understanding of all costs involved.
F8
Throughout the 7 year life of current hybrids in operation, model year 2002 through 2008, the depreciation cost (original purchase price less resale value) of hybrid cars and SUVs exceeded the depreciation cost of conventional powered vehicles. The hybrid depreciation cost for 2003 model vehicles with mileage accumulation to 99,000 miles ranges from $3,970 to $4,465 per vehicle more than a comparable conventional powered vehicle7. Similar depreciation costs continue for all model years, 2002 through 2010. (See Exhibit A)
Related Recommendations (2)
R1
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Commission a new study of the total cost of ownership, including depreciation, comparing hybrid and other alternative fuel vehicles with conventional “green” vehicles.
R2
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Utilize the results of the new study to revise, if necessary, the current vehicle purchasing policy. While there are many considerations, any decision should be based on a full understanding of all costs involved.
F9
The depreciated value (salvage value) predicted in the 2003 Operations Review Report for compact hybrid vehicles traded in seven years after being put into operation, were higher than current Kelley Blue Book listings. The report used a salvage value of $6,524 for vehicles purchased in 2003 and traded in 2010. The January-March 2011 Kelley Blue Book reports an expected trade in value of $5,025. Thus the report may have overestimated the trade-in value by $1,509 or 23 percent more than each vehicle was worth.
Related Recommendations (2)
R1
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Commission a new study of the total cost of ownership, including depreciation, comparing hybrid and other alternative fuel vehicles with conventional “green” vehicles.
R2
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Utilize the results of the new study to revise, if necessary, the current vehicle purchasing policy. While there are many considerations, any decision should be based on a full understanding of all costs involved.
F10
According to the local auction vendors, for compact and midsize vehicles, the salvage value decreases rapidly after 100,000 miles. Conclusions
Related Recommendations (1)
R3
The San Mateo County Civil Grand Jury recommends that the Board of Supervisors:
Develop a new policy for vehicle retirement based on mileage accumulation as the primary determinant rather than the current policy of 100,000 miles or 7 years, whichever comes first. Exhibit A Compact Conventional and Hybrid Vehicles Base Trade In Net Cost Price Value (est) Savings from Year Mfg Type Model $ $ Conventional 2002 Toyota Hybrid Prius 20,480 4,225 Conventional Corolla S 14,073 3,400 Price/Trade In Value Difference 6,407 825 5,582 Honda Hybrid Insight 21,740 5,325 Conventional Civic LX 15,550 3,425 Price/Trade In Value Difference 6,190 1,900 4,290 2003 Toyota Hybrid Prius 20,730 5,025 Conventional Corolla S 15,165 3,925 Price/Trade In Value Difference 5,565 1,100 4,465 Honda Hybrid Civic 19,990 4,500 Conventional Civic LX 15,670 4,150 Price/Trade In Value Difference 4,320 350 3,970 2004 Toyota Hybrid Prius 20,510 6,600 Conventional Corolla S 15,030 5,175 Price/Trade In Value Difference 5,480 1,425 4,055 Honda Hybrid Civic 20,140 5,400 Conventional Civic LX 15,850 5,000 Price/Trade In Value Difference 4,290 400 3,890 2005 Toyota Hybrid Prius 21,515 8,175 Conventional Corolla S 15,430 5,750 Price/Trade In Value Difference 6,085 2,425 3,660 Honda Hybrid Civic 20,315 6,725 Conventional Civic LX 16,025 6,375 Price/Trade In Value Difference 4,290 350 3,940 2006 Toyota Hybrid Prius 22,305 10,000 Conventional Corolla S 15,755 6,650 Price/Trade In Value Difference 6,550 3,350 3,200 Honda Hybrid Civic 23,195 10,550 Conventional Civic LX 17,555 9,325 Price/Trade In Value Difference 5,640 1,225 4,415 2007 Toyota Hybrid Prius 22,755 11,600 Conventional Corolla S 15,830 8,000 Price/Trade In Value Difference 6,925 3,600 3,325 Honda Hybrid Civic 23,195 10,550 Conventional Civic LX 17,555 9,325 Price/Trade In Value Difference 5,640 1,225 4,415 2008 Toyota Hybrid Prius 22,985 13,000 Conventional Corolla S 16,110 8,775 6 Compact Conventional and Hybrid Vehicles Base Trade In Net Cost Price Value (est) Savings from Year Mfg Type Model $ $ Conventional Price/Trade In Value Difference 6,875 4,225 2,650 Honda Hybrid Civic 23,235 12,050 Conventional Civic LX 17,595 10,600 Price/Trade In Value Difference 5,640 1,450 4,190 2009 Toyota Hybrid Prius 24,035 14,000 Conventional Corolla S 17,310 8,900 Price/Trade In Value Difference 6,725 5,100 1,625 Honda Hybrid Civic 24,320 13,300 Conventional Civic LX 18,125 11,550 Price/Trade In Value Difference 6,195 1,750 4,445 2010 Toyota Hybrid Prius 22,150 16,450 Conventional Corolla S 17,470 10,200 Price/Trade In Value Difference 4,680 6,250 (1,570) Honda Hybrid Civic 24,510 14,350 Conventional Civic LX 18,315 12,550 Price/Trade In Value Difference 6,195 1,800 4,395 SUV Conventional and Hybrid Vehicles Net Cost Savings Trade In from Base Price Value (est) Convention Year Mfg Type Model $ $ al 2005 Ford Hybrid Escape 28,595 8,575 Conventional Escape 22,045 6,800 Price/Trade In Value Difference 6,550 1,775 4,775 2006 Ford Hybrid Escape 29,140 10,400 Conventional Escape 22,435 8,425 Price/Trade In Value Difference 6,705 1,975 4,730 2007 Ford Hybrid Escape 27,925 12,350 Conventional Escape 22,515 10,100 Price/Trade In Value Difference 5,410 2,250 3,160 2008 Ford Hybrid Escape 27,680 15,750 Conventional Escape 22,175 12,800 Price/Trade In Value Difference 5,505 2,950 2,555 2009 Ford Hybrid Escape 30,750 17,750 7 Compact Conventional and Hybrid Vehicles Base Trade In Net Cost Price Value (est) Savings from Year Mfg Type Model $ $ Conventional Conventional Escape 23,370 14,350 Price/Trade In Value Difference 7,380 3,400 3,980 8
Conclusions 4
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CL1 Page 5A higher resale value can be achieved by selling compact and midsize vehicles with less than 100,000 miles on the odometer.
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CL2 Page 4The San Mateo County Audit Division report overestimated the trade-in value of hybrids. This brings into question the conclusion that “The County can realize… fiscal savings [from the purchase of hybrids]…” 7 Kelly Blue Book used car guide for January through March 2011. 4
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CL3 Page 5The “green” standard specified by the Board of Supervisors to achieve clean air and higher fuel economy can be achieved by purchasing compact and mid-sized vehicles with conventional four-cylinder engines.
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CL4 Page 5Compact and mid-sized vehicles with conventional four-cylinder engines cost less to purchase and typically depreciate less than hybrid vehicles.
No Responses Found 1
Government entities assigned to respond to this report. No response documents have been linked in our database.
San Mateo County Board of Supervisors
Elected County Office