High Gas Prices Squeeze Cities
Governments, schools try to conserve, save services

Andy Henion and Jennifer Mrozowski / The Detroit News

DETROIT, Mich., June 9, 2007 – Rocked by fuel-bill increases that in some cases top $100,000 a year, municipal governments and school districts across southeastern Michigan are scrambling to slash transportation costs and become more efficient.
In western Oakland County, Huron Valley Schools is considering eliminating some bus stops.

Officials in Warren have set a "no-idle" policy for hundreds of employees who drive city-owned vehicles.

And in Canton Township, building inspectors and police detectives are tooling around in economy cars instead of the gas-guzzlers they used to drive.

Although gas prices topping $3 per gallon for the past month apparently haven't caused major service cuts, some officials say that could eventually happen. Municipal leaders say they're already dealing with reductions in state revenue as Michigan's economy continues
to lag.

"At some point, something's got to give," said Joe Munem, spokesman for Warren, the state's third largest city. "Either we have to eliminate some programs or we have to raise taxes. And there's no mood out there for people to have their taxes raised."

Bryan Mitchell / Special to The Detroit News
Dorothy West fuels up the bus she drives for Detroit Public Schools at the district's west side bus yard on Greenfield. The district's bus fleet uses about 20,000 gallons of fuel a week.

Switching to smaller cars
Although municipalities and school districts are exempt from most fuel taxes and often
save money by buying fuel in bulk, they're not exempt from the wild price fluctuations that have plagued Michigan residents.

After dipping below $2 a gallon at the beginning of the year, the price of unleaded fuel climbed to a record $3.53 a gallon May 26, according to AAA Michigan. The price has since come down about 20 cents.

Canton Township vehicles, such as SUVs and Crown Victorias, that reach the end of their life are being replaced by smaller, more fuel-efficient Ford Tauruses for some employees, such as detectives who don't engage in many highspeed chases.

The township's monthly fuel bill for its 171-vehicle fleet has jumped from about $25,000 to $30,000 with the recent spike in prices, officials said.

While it's become common for municipal leaders to budget more for fuel costs, few were prepared for this year's huge increase.

"Nobody saw $3.50 coming," said township Supervisor Thomas Yack.
In Southfield, the bill to fuel the city's vehicles jumped from $390,000 last year to $525,000 this year, said Jim Scharret, acting city manager.

City officials are budgeting $560,000 for next year, he said.

"We projected on the high side, so we've been able to absorb it so far," Scharret said Friday.

In Warren, in addition to the no-idling policy for non-police vehicles, Munem said city
officials are asking employees to make fewer trips and have installed satellite-positioning systems in vehicles that help track the shortest route. The city's 603-vehicle fleet ranges from police cruisers to fire engines to recycling trucks.

"We will attempt to gain any efficiency that we can," Munem said, "but the costs are going
up and there's nothing we can do about that."

Schools seek savings
School districts, also hammered by the higher prices, are redesigning bus routes and searching for other efficiencies.

At Detroit Public Schools, where the buses use about 20,000 gallons of fuel a week,
district leaders are considering limiting the time that drivers can idle buses, buying better fuel filters to improve gas mileage and applying for a federal
grant to buy hybrid electric buses.

The district recently entered a consortium with others, allowing the group to get lower
prices by buying in bulk, said Jovon Boyer, the district's transportation chief. The district
paid $2.16 a gallon for diesel in May, versus $2.26 at this time last year, Boyer said.

The Detroit school system expects to exceed its $2 million annual fuel budget by $100,000-$150,000 because of the rising fuel prices, he said.

"The biggest problem is that we put our budgets together in July and it's hard to determine what the price (of fuel) will be in December," Boyer said.

RKA Petroleum in Romulus distributes fuel for the consortium from multiple suppliers. Company vice president Keith Albertie said Friday that school districts are saving money by switching buses to run on biodiesel.

Biodiesel is about 2 cents per gallon cheaper, meaning that on a typical 12,000-gallon delivery, a district can save $200, he said. RKA spent a "significant" amount of money to accommodate biodiesel delivery, Albertie said. "I'd say about 60 percent of the school districts have converted to biodiesel," he said. "It's going gangbusters."

Huron Valley Schools will spend about $610,000 on fuel this year -- a $60,000 increase
over last year, said Tom Moore, transportation supervisor.

Seesawing prices have made it hard to plan, he said. The district budgeted $2.10 a gallon this year for diesel, which most of the buses use, and from January to April prices ranged from $1.72 to $2.46.

And unlike individuals, the school system can't limit driving time or carpool when costs spike.

"We don't have that many kids who can actually walk to school," Moore said of the suburban district, which encompasses more than 100 square miles.

The district is considering buying a fuel management system that could identify the least efficient routes and inefficient bus engines. He estimates the cost at $15,000, which would have to be approved by the board, but said he would expect
to see a return in a year.

The school system also is limiting bus idling and reviewing routes. That could mean centralizing bus stops within a neighborhood or moving the stops to the front of a subdivision. Students may walk farther to a bus stop in some cases, Moore said.

"Anything and everything is on the table," he said.

You can reach Andy Henion at (313) 222-2610 or ahenion@detnews.com.