SAN MATEO, CA – The county of San Mateo's Grand Jury has urged the Public Works Department to commission of a new study of the operational costs associated with hybrid vehicles.

An original operations review report on the Department of Public Works’ Fleet Management Division, conducted in 2003, included projected trade-in values for hybrids based on information available at the time.

San Mateo’s Grand Jury found that hybrid vehicle depreciation is higher than with conventionally powered vehicles, which the group said could offset fuel savings. The Grand Jury has not performed a detailed study of operational costs at this point, though, and recommended that the County Board of Supervisors commission a new study to compare hybrid and conventional vehicle costs of ownership.

The Public Works Department has purchased 200 hybrid vehicles since 2002. The vehicles purchases were Toyota Prius or Honda Civic hybrid compact sedans, and seven hybrid Ford Escape SUVs between model years 2007-2010.

In the 2003 report, the county’s fleet consisted of 342 compact and mid-size vehicles assigned to three areas, the motor pool, specific departments, and specific individuals. The county’s fleet maintenance department bills 19 other departments for the mileage costs associated with vehicle use. In 2008, the county’s Board of Supervisors decided that 32 percent of vehicles purchased must be fuel-efficient (Ultra Low Emissions Vehicle, Partial Zero Emissions Vehicle, or Zero Emissions Vehicle). In addition, the Board mandated that vehicles purchased had to achieve minimum of 30 miles per gallon.

The recent report found the depreciated value for hybrids traded in after seven years in operation, predicted in the 2003 Operations Review Report, were higher than current Kelley Blue Book listings. The January-March Kelley Blue Book values reported an expected trade-in value of $5,025, where the original 2003 report used a depreciation value of $6,524.

The recent report recommended commissioning a new study of the total cost of ownership for hybrids and conventional vehicles. It also said to use the results of the forthcoming study to revise, if it’s found necessary, the current vehicle purchasing policy. Lastly, it also suggested developing a policy for vehicle retirement based on mileage accumulation rather than the county’s current policy of 100,000 miles or 7 years.

You can read the entire report here.

By Greg Basich