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I,--, MEMO TO: Mayor and City Council <br />FROM: Clerk -Administrator <br />DATE: March 1, 1984 <br />SUBJECT: ANALYSIS OF PROPANE CONVERSION <br />In February of 1982 staff presented a report to the City Council <br />entitled, "Liquid Propane Gas (LPG) as an Alternative Fuel Source <br />for Municipal Vehicles", copy attached. The report concluded <br />that an analysis of LPG as an alternative fuel revealed that the <br />City would benefit from the conversion of some of our vehicles <br />and recommended the conversion of seven vehicles during 1983. <br />The City Council chose to limit the conversion to five vehicles <br />(two squad cars, two pickups, and the Jet Rodder) and this was <br />accomplished during 1983. The purpose of this report is to <br />summarize our experience with the use of propane and make recom- <br />mendations regarding its continued use. <br />The total cost for propane conversions during 1983 was as follows: <br />Propane Tank (General Fund) $3,532.40 <br />Conversions: <br />Equipment (General Fund) 2,466.92 <br />(Sewer Fund) 2,073.68 <br />Labor 1,500.00 <br />TOTAL COST $9,573.00 <br />As the Propane Tank installation costs (included electrical, <br />fencing, site grading, and gravel) cannot be directly attributed <br />in whole or in part to any one vehicle, this expense will not be <br />used in making an analysis of the economics of propane. The <br />actual cost of conversion, labor and material, was $6,041 ($3,367 <br />General Fund and $2,674 Sewer Fund). In order to establish and <br />average conversion cost per vehicle the following computations <br />and assumptions were made: <br />Average Conversion Costs: <br />General Fund - $3,367 3 = $1,122/vehicle <br />Sewer Fund - $1,122 for pickup <br />$1,552 for Jet Rodder <br />Assumptions: <br />1. It was assumed, based on experience, that the cost of <br />converting a pickup versus a car is similar thus, <br />except for the Jet Rodder all other vehicles could use <br />average cost. <br />