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HomeMy WebLinkAbout2000-07-10 City Council (14)TO: FROM: City of Palo Alto. City Manager’s Re rt n0NORA LE CiTY coutUrE CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: SUBJECT: JULY 10, 2000 CMR:308:00 RESOLUTION AUTHORIZING THE CITY OF PALO ALTO TO SUBMIT A FUNDING APPLICATION TO THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT (BAAQMD)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 approve a resolution authorizing the City Manager to submit a funding application to the BAAQMD for the .purchase of four compressed natural gas (CNG-fueled) medium-duty trucks. DISCUSSION 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. Equipment Management’s continuing efforts toward the purchase Of CNG-fueled fleet vehicles have diminished of late due to the difficulty in finding suitable vehicles for light duty applications. For example, no manufacturer produces a CNG-fueled compact pickup truck or compact van. Recent.ly, medium-duty truck engine technology has developed to the point where the use of production diesel engines converted to operate on ¯ CNG fuel has become a viable option. The purchase of this type of vehicle is actually more compelling than the purchase of light-duty CNG-fueled vehicles, due to the fact that most medium-duty truck engines burn diesel fuel. Medium-duty diesel engines are much larger than light-duty gasoline engines, so they produce a greater amount of exhaust emissions, which are a known source of dioxin. Many light-duty gasoline engines have already achieved Low Emission (LEV) or Super Low Emission (SULEV) certification; therefore the emission advantage of CNG fuel in light-duty applications is minimal. CMR:308:00 Page 1 of 2 Equipment Management has identified three large dump trucks and a 4,000-gallon water truck scheduled to be replaced in FY 2000-01 that would be ideal candidates for CNG- fueled engines, The funding application the City will be submitting will request. $200,000 to pay the incremental cost of installing CNG fuel Systems on these vehicles. The City will be required to pay this cost at the time of purchase, and will be reimbursed by the BAAQMD after the projects are complete. The Vehicle Replacement and Maintenance Fund will pay the remainder of the replacement cost. In order to qualify for this funding, the attached resolution must be passed and delivered to the BAAQMD no later than July 30, 2000. The BAAQMD will audit the project to insure that it was completed, and 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 2000- 2001 Vehicle Replacement and Maintenance Fund Budget. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project is exempt from 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: Keith La Haie, Fleet Manager, Public Works DEPARTMENT HEAD: /~ ~. GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: E19IILY HARRISON Assistant City Manager CMR:308:00 Page 2 of 2 ATTACHMENT 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 TO PURCHASE FOUR COMPRESSED NATURAL GAS FUELED MEDIUM DUTY TRUCKS 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 Area; and WHEREAS, the City of Palo Alto intends to submit a funding application ’to the Bay Area Air Quality Management District for the purchase of four compressed natural gas (CNG) fueled medium duty trucks. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION I. The City Manager is authorized to submit an application to the Bay Area Air Quality Management District for the City of Palo Alto for the purchase of four CNG-fueled medium duty trucks. SECTION 2. The City Manager or his designee is authorized to execute a funding agreement with the Bay Area Air Quality Management District for the purpose of purchasing four CNG-fueled medium duty trucks provided the applihation has been approved by the Bay Area Air Quality Management District Board of Directors. // // // // // // // 000705 c10052546 SECTION 2. The Council finds that this project is exempt from, the provisions of the Environmental Quality Act ("CEQA") because it can be seen with certainty that there is no possibility that this project will have a significant effect on the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: City Attorney Mayor City Manager Director of Public Works Director of Administrative Services 000705 cl 00525,46