Environmental Services, Finance, & Maintenance - 01-03-1995 - Page 001,City of West Covina
Memorandum
T0: City Manager and City Council. AGEN11)"'A
FROM: Environmental Services, Finance ITEM NO. C-8-c
and Maintenance Departments January 3, 1995'"
DATE
SUBJECT: VEHICLE PURCHASES AND CONVERSIONS Printed on Recycled Paper
SUMMARY: This is'a report on the proposed purchase and conversion of certain
city vehicles using restricted air quality improvement funds
(Prop. C - Regulation XV Monitoring and AB 2766/DMV Registration
fees).
Staff from the Environmental Services, Finance, and Maintenance Departments
met to discuss the options and funding available to help meet.Regulation XV
and'1994 Air Quality Management Plan (AQMP), as well as Federal Implementation
Plan (FIP) requirements.
Subsequently the Maintenance Department conducted an assessment of City
vehicles and provided direction as to what fleet vehicles would be good
candidates for being replaced with new alternate fuel vehicles and what
vehicles would be'good candidates for conversion to alternate fuels. (See
attachment.)
BACKGROUND
This report addresses two separate air quality improvement issues: 1)
Regulation XV; and 2) the 1994 Air Quality Management Plan (AQMP) and
potentially, the Federal Implementation Plan (FIP).
Regulation XV monitoring is restricted to reducing.vehicle emissions from
employee vehiclesarriving at the work site. Regulation XV incentivesinclude
ridesharing, using mass transit, walking, biking, and using alternate fueled
vehicles.
The 1994 AQMP and,the FIP address reducing emissions -on a more regional level.
Included in,these plans are measures to reduce emissions from stationary,
sources (e.g., manufacturing plants), and on -road (vehicle) sources. There is
an emphasis on the use of technology to reduce emissions. The plans also
address behavioral changes such as pay -for parking at malls, for instance.
Purchase and conversion to alternate fuel for fleet vehicles are measures
addressed in these plans.
FUNDING
The City receives two sources of funds for air quality improvement:
1) AB 2766/DMV Registration Fee funds for the sole purpose of reducing
vehicle emissions (mobile sources); and
2) Proposition C - Regulation XV Monitoring funds. Proposition C is
transportation -related funding derived from the half (112) cent sales tax
imposed by the Prop. C Ordinance of the Los Angeles County Metropolitan
Transportation Authority (MTA). The Prop. C funds are to be expended
within three (3) years of receipt. Regulation XV's goal is to -reduce
vehicle emissions from employee vehicles arriving at the work site.
a
City
Manager
and City Council
3 January 1995
RE:
Vehicle
Purchases and Conversions
Page 2
FUNDING (Continued)
Included in the FY 1994-95 AB 2766 Budget -is $61,580 for equipment/vehicles.
The FY 1994-95 Prop C - Reg. XV Monitoring Budget is $25,000. It should be
noted that there are prior years' air quality improvement funds also
available. In sum, the prior years' balance for AB 2766 funds is .
approximately $160,000; for Prop. C - Reg. XV Monitoring it's $50,000..
REGULATION XV
Regulation XV applies to all cities, businesses, and agencies with 100 or more
employees. The goal of Regulation XV is to reduce vehicle emissions from
employee vehicles arriving at the worksite. Specifically, employers are to
reach an Average Vehicle Ridership (AVR) of 1.5 employees per vehicle.
Regulation XV also requires agencies to provided incentives to reach the 1.5
target. Included in the incentives of the City of West Covina's Regulation XV
Trip_Reduction Plan, approved by the City Council on July 19, 1994, is the
purchase of flex -fueled vehicles and the conversion of vehicles to alternate
fuel. Recent changes in Regulation XV have resulted in cities/businesses not
receiving credit for vehicle conversions to alternate fuel for those vehicles
arriving at the work site. Credit is only given to factory -built alternate
fueled vehicles. For this reason, it is proposed that four vehicles (those
used for city business*as well as commuting .to and from the work site).be
replaced with new methanol vehicles. The total cost for four 1995 flex -fuel
Ford Taurus's.is .$64,088.32. These funds would be expended from.the Prop C -
Reg. XV Monitoring fund.
As stated above, the four vehicles recommended for replacement are those used
for City business as well as commuting to and from the work site. As you can
see from the attachment, the four vehicles referred to.are used by public
safety. Because of varied work commitments and city -related meetings both
inside and outside the city, at night, early morning, etc., it can be more
difficult for these employees to.participate in the carpool/rideshare program.
Methanol Credit - 5:1 Ratio
To put this into perspective the City's Average Vehicle Ridership (AVR)
this year was 1.42.. This was due to the purchase of 6 methanol vehicles.
Without the methanol vehicles, the AVR would be 1.36. The calculation is
as follows:
No. of 5:1 Ratio Total Clean Vehicles
Vehicles Per Day
6 x 0.80 = 4.8 x 5 days = 24 vehicles per week
Without the clean vehicles credit; the City would have to reduce the
number of vehicles arriving at the work site by an additional 24 vehicles
per week.
City Manager and City Council
RE: Vehicle Purchases and Conversions
Methanol Credit (Continued)
3 January 1995
Page 3
Clean fuel credit only applies to the vehicle itself. In other words,
using the 5:1 ratio, if you have 2 people in a clean fuel vehicle, you do
not get the credit for 10 people ridesharing. The credit is obtained as.
outlined abovel'.
By replacing 4 vehicles with methanol flex -fuel vehicles, and maintaining
the same number of ridesharers, our AVR will increase -to 1.46. Under
present regulation, the AVR target is 1.5. Hence, we will demonstrate
improvement in achieving the goal.
1994 AIR QUALITY MANAGEMENT PLAN (AQMP) AND FEDERAL IMPLEMENTATION PLAN (FIP)
Pursuant to theseregulations, agencies not only receive credit for vehicle
conversions to alIernate fuels, but are required to have approx. 20% of their
fleets converted �o alternate fuels. This requirement may be enforced as
early as'1997. It is proposed that 4 fleet vehicles be converted to propane
fuel (LPG) and 3 CSO (police) vehicles be replaced with methanol flex -fuel
vehicles. Please refer to the attachment for the specifics.
The total cost for the conversion of the four vehicles is approximately
$9,540. The CSO Vehicle replacement cost for three 1995 flex -fueled Ford
Taurus's is $48,0�66.24. Total cost for the 4 conversions and 3 CSO vehicle
replacements is approximately $57,606.24. These funds would1be expended from
the reserve AB 2766/ DMV Registration funds.
.SUMMARY
The City has restricted funds available for air quality improvement.purposes.
Alternate fuel vehicle purchases and conversions would not only address the.
various air quality improvement regulations, but would also be a good example
of the City of West Covina taking a proactive effort to reduce smog and
improve the commuinity's environment without using General Fund monies..
In sum, the City has to reach an Average Vehicle Ridership (AVR) of 1.5
vehicles arriving at the worksite in order to meet Regulation XV requirements.
There are restricted Prop. C and AB 2766 funds available for this purpose.
Because of the amount of credit given for methanol (5:1 ratio) and the good
performance provided from the existing methanol vehicles, it is recommended
that the seven proposed purchases be flex -fueled vehicles. The flex fuel
allows the vehicle to operate on either methanol or unleaded gasoline,' This is
an excellent feature in the event of a disaster and/or if methanol fuel is not
readily available
The City also has
1994 Air Quality
(FIP). There arE
on the informatic
tank at the yard,
converted to pror
fueled vehicles t
to meet vehicle fuel conversion limits as required.by the
Management Plan (AQMP) and the Federal Implementation' Plan
restricted AB 2766 funds available for this purpose." Based
i received and the fact that the City already has a propane .
it is recommended that four of the existing vehicles be
)ne%LPG. The City can track the performance of the propane-
determine future conversions and purchases.
i,
City Manager and City Council 3 January 1995
RE: Vehicle Purchases and Conversions Page 4
SUMMARY (Continued)
Based on the above information, staff is recommending that the City Council
approve the purchase of seven 1995 flex -fueled Ford Taurus's (3 Police CSO and
4 Public Safety Department vehicles). Staff is also recommending that the
City Council approve the conversion of four city vehicles to propane (LPG)
fuel as outlined in the attachment.
VENDORS
Staff researched the costs and types of vehicles available. It was found that
Tuttle Click Ford in Irvine provided the most economical flex -fueled vehicle.
In fact, they were willing to beat the price of Senator Ford in Sacramento,
who was awarded the State bid for flex -fueled vehicles. Senator Ford's total
cost for the identical vehicle was $16,988.29 , including tax. Tuttle Click's
total cost for the vehicle is $16,022.08, including tax.
Staff also researched the costs associated with LPG conversions. Presently we
have found that Mutual Liquid Gas & Equipment Co, Inc., of Gardena will
provide an economical conversion, as well as meet.the California Air Resources
Board specifications. Total cost of the four conversions will not exceed
$9,540. Staff is in the process of securing additional. price quotes pursuant
to the City's purchasing policy.
RECOMMENDATIONS
It is recommended that the City Council:
1. Approve the purchase of seven 1995
not to exceed $112,154.56. Funds
,quality improvement funds; Prop. C
($64,088.32 - reserve and current
DMV Registration fees ($48,066.24)
flex -fueled Ford Taurus's, at a cost
to be utilized are the restricted air
- Regulation XV Monitoring account
fiscal years) and the reserve AB 2766/
2. Approve the conversion of four fleet vehicles (as listed on the
attachment) at a cost not to exceed $9,540: Funds to be utilized are
from the reserve air quality improvement fund; AB 2766/ DMV
Registration fees.
Michael L. Miller
Environmental Services Director
PStrick Glover
Public Works Director
MLM/AWK/PG/SG
Attachment
CCVEH
4j, A/4, 4,
Abraham W. Koni ky
Finance Directo
L
Vehicles Recommended for Conversion to Propane
APPROX.
VEHICLE
YEAR
MAKE/MODEL
MILEAGE
USE
COST
51
199.0
GMC Van
25,334
Comm. Tech
$ 2,635
110
1991
Ford F350 Truck
31,560
Street Maint.
1,800
135
1992
GMC Hyd. Lift Truck
12,055
Electrician
2,635
100
1993
GMC 112 Ton Truck
22,299
Maint. Supv.
2,470
* AB 2766 Fund
TOTAL $ 9,540*
Vehicles Recommended for Replacement to
Flex -Fuel
P-30
1991
Ford Crown Victoria
51,225
Police CSO
;$16,022
P-31
1991
Ford Crown Victoria
35,648
Police CSO
16,022
P-33
1991
Ford Crown Victoria
36,394
Police CSO
16,022
TOTAL
$48,066**
B-3
1993
Nissan Maxima
25,790
Police Chief
$16,022
600
1991
Chevy Caprice
23,001
Police.Cmdr.
16,022
B-6
1992
Ford Taurus
15,615
Police Cmdr.
16,022
27-
1991
Ford Taurus
38,484
Comm. Dir.'
16,022
TOTAL
$ 64,088*
*
Prop.C-Reg. XV
Monitoring Fund.
**
AB 2766 Fund
12/ 28/94
Veh7