ALTHOUGH THE MANUAL EMPHASIZES THE IMPORTANCE OF COST ACCOUNTING AND RECORDKEEPING, IT IS WRITTEN WITH THE ASSUMPTION THAT THE LOCAL MANAGER HAS LIMITED INFORMATION REGARDING EITHER THE CURRENT USAGE AND FUEL ECONOMY OR THE COSTS OF MAINTAINING INDIVIDUAL VEHICLES IN THE FLEET. THE ELEMENTS OF AN ENERGY MANAGEMENT PROGRAM OF MUNICIPAL VEHICLES ARE (1) FUEL AND MAINTENANCE COST ACCOUNTING, (2) LIFE CYCLE COSTING, (3) PREVENTIVE MAINTENANCE, (4) REDUCED VEHICLE USAGE, AND (5) VEHICLE REPLACEMENT POLICY. THE COST-ACCOUNTING SYSTEM SHOULD RECORD AND MAINTAIN THE FOLLOWING INFORMATION: MONTHLY AND ANNUAL DIRECT MAINTENANCE LABOR HOURS AND COST OF REPLACEMENT PARTS FOR EACH VEHICLE. LIFE CYCLE COSTING IS A TOOL THAT ALLOWS THE MUNICIPAL ADMINISTRATOR TO ESTIMATE THE ANNUAL OPERATING COST OF A VEHICLE FROM READILY AVAILABLE INFORMATION. FROM THIS, THE ADMINISTRATOR CAN IDENTIFY A SINGLE COST THAT REPRESENTS THE COMBINED COSTS OF PURCHASING, OWNING, AND OPERATING A VEHICLE FOR AS LONG AS IT REMAINS IN THE FLEET. MOREOVER, PREVENTIVE MAINTENANCE FOR MUNICIPAL VEHICLES CAN IMPROVE THE AVERAGE FUEL ECONOMY OF A FLEET BY FROM 1 TO 3 MILES PER GALLON. REDUCING UNNECESSARY USAGE OF MUNICIPAL VEHICLES AND IMPROVING THE DRIVING HABITS OF VEHICLE OPERATORS ALSO ACHIEVE SUBSTANTIAL AND IMMEDIATE SAVINGS AT NO COST. A VEHICLE REPLACEMENT ANALYSIS PROVIDES A USEFUL TOOL FOR DETERMINING WHEN A VEHICLE SHOULD BE REPLACED TO KEEP THE AVERAGE ANNUAL OWNING AND OPERATING COSTS OF THE FLEET AS LOW AS POSSIBLE. APPENDIXES CONTAIN A MODEL LIFE CYCLE COST ANALYSIS WITH SIMPLIFIED WORKSHEETS, INSTRUCTIONS, AND EXAMPLES; MODEL SPECIFICATIONS FOR CONTRACT VEHICLE MAINTENANCE FOR CITIES AND TOWNS WITHOUT A MUNICIPAL MAINTENANCE FACILITY; AND A MODEL ANALYSIS FOR DETERMINING THE BEST REPLACEMENT POINT OF MUNICIPAL VEHICLES. TABULAR DATA AND SAMPLE FORMS ARE INCLUDED. (WJR)