HomeMy WebLinkAboutStaff Report 338-05City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 8, 2005 CMR:338:05
SUBJECT: RESOLUTION AUTHORIZING THE CITY OF PALO ALTO TO
SUBMIT A FUNDING APPLICATION IN THE AMOUNT OF $150,000 TO
THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT (BAAQMD)
FOR THE PURCHASE OF TWO COMPRESSED NATURAL GAS
STREET SWEEPERS AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A FUNDING AGREEMENT WITH THE BAAQMD IF THE
APPLICATION IS APPROVED BY THE BAAQMD BOARD OF
DIRECTORS
RECOMMENDATION
Staff recommends that Council:
1. Approve a resolution authorizing the City Manager to submit a funding application in the
amount of $150,000 to the BAAQMD for costs associated with the purchase and
installation of compressed natural gas (CNG) fueled systems on two new street sweepers;
and
2. Authorize the City Manager to execute a· funding agreement if the application is
approved .. ,
BACKGROUND
The BAAQMD administers the Transportation Fund for Clean Air (TFCA), which is funded by a
$4 surcharge assessed on all Bay Area motor vehicle registrations. The vehicle surcharge
generates approximately $20 million per year in TFCA revenue. Forty percent of TFCA
revenues are distributed to Bay Area counties. Sixty percent of TFCA funds (the TFCA
Regional Funds) are allocated by the BAAQMD through a competitive grant application process,
in which the City will be participating.
DISCUSSION
City policy requires the purchase of altematively-fueled vehicles and equipment whenever
possible. In keeping with that direction, Equipment Management last year applied for a
BAAQMD grant of $60,000 to offset a portion of the cost of a new CNG street sweeper.. The
application was successful, and a grant was awarded in February 2005. The new street sweeper
is on order,' with delivery expected in January 2006. It will replace an existing CNG street
sweeper that was purchased in 1997.
CMR:338:05 Page 1 of3
5
Looking forward, Equipment Management has identified two diesel-powered street s-weepers
scheduled for replacement in FY 2006-07 that can also be replaced by CNG street sweepers.
The existing sweepers each employ two engines that consume approximately 3,500 gallons of
diesel fuel annually. They also operate on routes that bring them in close proximity to
popUlations particularly sensitive to diesel exhaust and particulate matter (PM) emissions. A
street sweeper generates large amounts of particulate matter; both as a component· of diesel
exhaust and as dust that is produced during sweeping operations. Much of this particulate matter
consists of particles less than 10 microns in size (PMI0). PMI0 can have serious health and
environmental impacts. The measurement of atmospheric PMI0 levels is used to determine
whether regional air quality meets State and Federal standards. The new CNG street sweepers
address PMI0 emissions in two ways. In addition to their CNG engines, which are inherently
low in PM emissions, the new street sweepers also include a dust-control system that
significantly reduces the amount of PMI0 that is generated during sweeping operations. The
new sweepers comply with South Coast Air Quality Management District (SCAQMD)
Rule 1186, which is a stringent PM emissions testing and certification protocol that has been
adopted by other regulatory agencies throughout the State. Currently the BAAQMD does not
specifically regulate PMlO emissions from street sweeping; however, they do regulate PMI0
emissions from diesel engines, and from other dust-generating activities. Staff is certain that the
SCAQMD rule or a similar regulation will be adopted by the BAAQMD within the next several
years. Not only will the purchase of CNG street sweepers in~ure compliance with this
anticipated future regulation, it will reduce the City's consumption of diesel fuel also.
A CNG street sweeper costs approximately $:400,000, which is $60,000 more than an equivalent
diesel-powered unit. The funding application the City will be submitting will request $120,000
to cover this additional cost (for two units). The City will be required to pay this additional cost
at the time of purchase, and will be reimbursed by the BAAQMD after the project is completed.
The Vehicle Replacement and Maintenance Fund will pay the remainder of the replacement cost
(a cost to the City of approximately $280,000). A condition of the grant requires that the diese'i-
powered sweepers (or two equivalent vehicles) be destroyed, so that they can no longer be used.
Normally, the two surplus sweepers would be remarketed through an auction service, generating
approximately $30,000 in revenue. Because of the BAAQMD's destruction policy, the
application also includes a request for an additional $30,000 in funding to cover this lost
revenue.
In order to qualify for this funding, the attached resolution must be passed and delivered to the
BAAQMD no later than August 31,2005. The BAAQMD will audit the project to insure that it
was completed, and that it complies with the funding agreement. There is no requirement for the
City auditor to audit this project.
RESOURCE IMPACT
Funds for the replacement of the above mentioned vehicles are included in the FY 2005-2007
Vehicle Replacement and Maintenance Fund Budget.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies, including the Council's
Sustainability Policy.
CMR:338:05 Page 2 of3
ENVIRONMENTAL REVIE'V
This project is exempt £i·om the provisions of the California Environmental Quality Act (CEQA)
pursuant to Section 15308 (Action by Regulatory Agencies for Protection of the Environment) of
the CEQA guidelines.
ATTACHMENT
Attachment A: Resolution
PREPARED BY:
DEP ARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR:338:05
KEITH LA HAlE
Fleet Manager
-'\fili1w~
'ftR..GLENN S. ROBERTS
Director of Public Works
~.&.~.o ~ARRISON---
Assistant City Manager
. Page 3 of3
,)
./ NOT YET APPROVEtJTACHMENT A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO'
ALTO AUTHORIZING THE SUBMITTAL OF AN APPLICATION
TO THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT
FOR FUNDS FOR COSTS ASSOCIATED WITH PURCHASE AND
INSTALLA'rION OF COMPRESSED NATURAL GAS FUEL
SYSTEMS ON TWO NEW STREET SWEEPERS AND
AUTHORIZING EXECUTION OF THE FUNDING AGREEMENT
WHEREAS, the City of Palo Alto is a supporter of clean
air and wishes to take action to enhance air quality in the San
Francisco Bay Areaj and
WHEREAS, the City of Palo Al to intends to submit a
funding application to the Bay Area Air Quality Management
District (BAAQMD) for funding for the costs associated with the
purchase and installation of compressed natural gas fuel systems
on two new street sweepers.
NOW, THEREFORE, the Council of the City of Palo Alto
.does RESOLVE as follows:
SECTION 1. That the City Manager is authorized to
submit an application to the BAAQMD for the City of Palo Alto in
the amount of $150,000 to pay for costs associated wi th the
purchase and installation of compressed natural gas fuel systems
on two new street sweepers.
SECTION 2. That the City Manager is authorized to
execute a funding agreement with the BAAQMD if the application
is approved by the BAAQMD Board of Directors.
II
II
II
II
II
II
II
II
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NOT YET APPROVED
SECTION 3. The Council finds that this is not a project
under the California Environmental Quality Act and, therefore,
no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Sr. Assistant City Attorney
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Mayor
APPROVED:
City Manager
Director of Public Works
Director of Administrative
Services
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