Information Items:
- Alternative Fuel Evaluation
- Quality of Life Study Review Process
- Monthly Project Update for the NASCAR Hall of Fame

Attachments:
- NASCAR Hall of Fame October Newsletter

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Information Items:
Alternative Fuel Evaluation
Staff Resource:
       Chuck Robinson, 704-432-3539, clrobinson@ci.charlotte.nc.us

The high cost of gasoline and diesel fuels has increased the City's interest in alternative fuels and technologies. These same factors have increased the number of vendors and suppliers contacting Council members and City staff in an effort to advance their specific fuel or technology. City staff is devoting a significant amount of time and energy into evaluating the many fuel and technology options currently available in the market place.

Recently, Council members have been contacted by a representative of Blossman Propane Gas about the significant savings that can be realized by switching from gasoline to propane. The staff of the Equipment Management Division of Business Support Service (BSS) completed a detail analysis of Compressed Natural Gas (CNG) as an alternative fuel in September of 2008. While there are differences between CNG and propane, industry information on propane demonstrates many similarities, making us comfortable applying the conclusions of the CNG study to propane as well. The analysis found that CNG, as with propane.

• Produced significantly less harmful emissions than gasoline or diesel;
• Burned more efficiently than gasoline or diesel; and,
• Generally costs 15% to 40% less than gasoline or diesel.

The benefits of using this alternative fuel are easy to see, but the costs associated with the technology necessary to use the fuel are significant. The analysis found that CNG, as with propane, produced less energy than an equivalent amount of gasoline or diesel. This means that more CNG or propane would be required to travel the same distance a vehicle would go on a gallon of gasoline or diesel, reducing the initial cost advantage by up to 25%. The study also found the cost premium to convert a gasoline vehicle to use CNG or to purchase a CNG vehicle can range between $4,000 and $9,000 per vehicle, which is similar to the cost associated with the conversion to propane. While these costs are high, both CNG and propane would require the development of a refueling infrastructure, which adds costs.

In a discussion of alternative fuels, the Blossman representative acknowledged that conversion to propane is only advantageous for gasoline vehicles that travel over 38,000 miles a year, which is a criterion only a very small percentage of our non-police light vehicle fleet meet. However, there is an interesting application of propane as an additive in diesel engines that might have a more favorable return on investment than CNG or other combustion catalyst systems. BSS is currently studying the use of combustion catalyst in diesel powered heavy trucks to improve engine efficiency and mileage and will be initiating a review of propane as a possible alternative for this application.

Quality of Life Study Review Process
Staff Resource:
       Stanley Watkins, 704-336-3796, swatkins@ci.charlotte.nc.us

The City Council approved $75,000 in the FY09 budget to undertake a comprehensive review of the Neighborhood Quality of Life Study. The review is to include an assessment of the geography, methodology, variables, and the methods of disseminating information about the study. The review is to establish parameters for continuing the study over the next decade.

On October 8, the Council's Housing and Neighborhood Development Committee discussed the process for moving forward with the Quality of Life review. Given the current economic situation, potential impact on revenues, and need to manage expenditures carefully, the Committee decided unanimously to delay the study, and thus the expenditure of the funds, for twelve months. Members present were Mayor Pro Tem Susan Burgess and Council members James Mitchell, Warren Cooksey and John Lassiter. Since this would have been a contract which could have been approved by the City Manager, formal Council action is not needed. Staff will bring the review process for the Quality of Life study back to the Committee in approximately one year for further discussion.

Monthly Project Update for the NASCAR Hall of Fame
Staff Resource:
       Jim Schumacher, 704-336-3656 or jschumacher@ci.charlotte.nc.us

Attached is the October edition of the Project Update newsletter for the NASCAR Hall of Fame. At Council's request, this document will be provided to City Council each month through completion of the project. It includes a table of expenditures to date, key milestones completed, and a look ahead at upcoming milestones.