HomeMy WebLinkAboutStaff Report 300-10,
City of Palo Alto
City Manager'sRepQJ::t�c�
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: AUGUST 2, 2010
REPORT TYPE: Informational
DEPARTMENT:
CITY AUDITOR'S OFFICE AND
CITY MANAGER'S OFFICE
CMR: 300:10
SUBJECT: Restatement of Greenhouse Gas Emissions and Energy Savings in City Operations
between Calendar Years 2005. and 2009
This is an informational report and no Council action is required.
EXECUTIVE SUMMARY
On April 19, 2010 the Climate Protection Team presented Council with a staff report (CMR 194:10)
containing data on fuel use by the City Fleet. At the April 20, 2010 Finance Committee meeting on
the Audit of Fleet Utilization and Replacement, the Committee directed the City Auditor to determine
whether there had been a spike in fuel consumption during 2009 and the causes. This report restates
data for fuel and energy use, and Greenhouse Gas Emissions presented in CMR 19 4: 10. It also
presents causes for the variations. The Greenhouse Gas Emissions from City operations declined by
10% between 2005 and 2009 . The estimated savings from reduced fuel, electricity and natural gas
consumption through the Climate Protection Plan increased from the reported $330,250 to $570,707.
DISCUSSION
The Climate Protection Team presented a Climate Protection Plan (CPP) update in April which
contained data on energy and fuel use by City Operations. At the Finance Committee meeting on the
Audit of Fleet Utilization and Replacement, the Committee directed the City Auditor to determine
whether there had been a spike in fuel consumption during 2009 and the causes. The request stemmed
from a difference in reported fuel consumption between the CPP report (CMR 194:10) dated April 19 ,
2010 and the fuel consumption Public Works staff provided in the audit report. The CMR showed
unleaded and diesel consumption increased, whereas the audit report numbers showed decreases.
The City Auditor's Office and Climate Protection Plan staff worked with the Public Works
Department to identify the source of differences in the reported numbers. Staff analysis indicated that
the CPP unleaded gasoline, diesel, and compressed natural gas (CNG) consumption numbers were
overstated in comparison to the consumption numbers from the existing fleet fuel management
system. Staff identified the overstatement as a result of uploading duplicate data into the City's
Greenhouse Gas tracking software usedto report the CPP savings. Staff worked with the software
consultant to identify an appropriate methodology for uploading future consumption reports to ensure
CMR: 300:10 Page 1
accuracyin subsequenH�:;PP reports�-Table 1 provides'acrevisedtable of estimated savings-and
consumption as well as the'original numbers presented in CMR 194:10. Overall, the estimated savings
from reduced fuel, electricity and natural gas consumption through the CPP increased from $330,250
to $570,707. '
We should note that the CPP consumption numbers are reported on a calendar year basis and the
numbers Public Works provided in the audit were on a fiscal year basis. As a result, the two
consumption reports will not be identical, but should show similar overall numbers and trends.
While the Auditor's Office was able to reconcile the revised CPP consumption numbers to the fuel
data, we should also note that the audit report identified weaknesses and discrepancies in the City'S
fuel system used to produce the consumption data. Public Works is in the process of reviewing these
discrepancies as.part of their implementation of Recommendation #19 which states, "Public Works
Department fleet management· should develop a system to reconcile fuel purchases, balances, and
consumption reports." Public Works will report on their progress towards implementing this
recommendation during the annual recommendation follow-up process in September. The Public
Works Department's ongoing improvements to the fuel system may result in further updates to the fuel
consumption numbers. As the audit recommendation and system improvements are implemented, the
CPP Team will collaborate with the Public Works Department to update subsequent CPP reports
accordingly.
PREPAREDBY:f / /l rJ
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KARL V AN ORSDOL "
DEPARTMENT HEAD APPROVAL:
Deputy City Manager
CITY AUDITOR APPROVAL: �UD
City Auditor
CITY MANAGER APPROV AL:
CMR "300:10 Page 2
Table 1. Original and Restated Fuel and Energy Consumption Data for Calendar Years 2005 and 2009
Original Data Stated in CPP (CMR 194: 1 0)
Restated Data
Notes:
Consumption
Consumption
GHG Emissions
(Metric Tonnes)
GHG Emissions
(Metric Tonnes)
Consumption
Consumption
GHG Emissions (Metric Increase/
Tonnes) (Reduction) in
GHG Emissions (Metric
Tonnes)
City Cost of
Consumable
City Cost of
Consumable
Cost
Increase/(Savings)
Cost
Increase/(Savings)
A) Consumption data excludes fuel usage by Greenwaste garbage trucks and school buses because these vehicles are not part of the City's fleet.
B) The Public Works Department is in the process of verifying consumption data as part of their implementation of Audit Recommendation #19
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