The San Francisco Municipal Railway (MUNI) is in the process of expanding its light-rail vehicle (LRV) system, to include track extensions and a new storage and maintenance facility. Methodology used by Manna Consultants to evaluate the operating cost savings (deadheading and driver relief costs) associated with alternative storage yard configurations and locations is described. A mathematical model was programmed on Lotus 1-2-3 to allow rapid analysis of alternative scenarios that were developed through conferences between Manna, MUNI, and the San Francisco Public Utilities Commission. The study determined that the new yard should be designed to accommodate LRVs only, and not a mixture of LRVs and historic streetcars, as had been proposed. For the current fleet, the new yard was found to reduce annual deadheading and relief costs by $1,000,000 per year. Although significant, this saving alone would not justify construction of a new storage yard. Justification comes from the need to store an expanded fleet that cannot be accomodated by the existing yards.