01-19-1993 - Purchase of Flex-Fueled/Methanol Vehicles•
City of Twist cmna
Memorandum
TO: I City Manager and City Council
FROM: Finance and Environmental Services
AGENDA
ITEM NO. `9
e9
DATE --Zf-93
SUBJECT: PURCHASE OF FLEX-FUELED/METHANOL VEHICLES
SUMMARY: In an effort to improve air quality and help meet the
provisions of Regulation XV and the California Clean Air
Act, staff is requesting approval for the purchase of six
flex/fueled vehicles using restricted funds for this
purpose.
The South Coast Air Quality Management District's (SCAQMD)
Regulation XV requires employers of 100 or more employees to reduce
their vehicle trips to the worksite. Additionally, the California
Clean Air Act contains provisions for reducing emissions from
mobile sources. Therefore in an effort to improve air quality and
help meet the provisions of these regulations, we are requesting
approval for the purchase of six (6) flex -fueled (methanol)
vehicles.
BACKGROUND
One of the incentives listed in the City's Trip Reduction/Commute
Management Plan was to purchase flex -fueled vehicles pending the
approval of a grant under the SCAQMD's Discretionary Fund Grant
Program. The City had requested funds to purchase 12 such
vehicles. Unfortunately the City was just recently notified that
they did not receive grant approval. Subsequently, the City was
notified that they received $25,000 from Prop. C monies,
specifically targeted for Regulation XV monitoring. Additionally,
the City received approximately $44,500 in AB 2766 funds for FY
1991-92 as outlined below in the funding paragraph.
Regulation XV gives a credit ratio of 3:1 for methanol -powered
vehicles. This means that we get a credit of 3 persons to l for
each of those vehicles. This will help us meet Reg. XV by
improving our Average Vehicle Ridership (AVR).
There are other advantages to purchasing flex -fueled vehicles. In
addition to improving the air quality, we will be using an
alternate supply of energy (methanol). The actual fuel used is
called 11M85" which is a combination of 85% methanol and 15%
unleaded fuel. Methanol -fueled vehicles reduce smog -forming
emissions by 30%--50% compared to the emissions of their gasoline
counterparts and reduce toxic emissions by 50%.
FUNDING
The AB2766 Air Quality Improvement Trust Account is a restricted
fund. These monies can only be used for the purpose of reducing
emissions from mobile sources. The AQMD audits these funds on a
yearly basis to be sure the funds are appropriately expended.
The City's 1991/92 Budget was adopted in July 1991. The City began
receiving the AB2766 Air Quality Improvement Trust Funds in October
1991. For FY 1991/92 the City received $44,521. These funds were
not previously appropriated.
The AB2766 Air Quality account for 1992/93 is budgeted at $48,000.
These funds are earmarked for LPG conversion kits, rideshare
incentives (bus pass subsidies and monthly drawings), part of the
City's funding portion for the required Air Quality Management
Plan, and 25% of an Administrative Analyst's position.
The City has also received Prop C funds. Part of these funds,
specifically $25,000, are to be used for "Regulation XV
Monitoring."
Funding for the vehicles will be provided from the Prop C monies
($25,000) -- Account No. 122-320-3345-7900, the 1991/92 AB 2766 Air
Quality Emprovement Trust Fund ($44,521.00) -- Account No. 555-310-
0000-4741, and the 1992/93 AB 2766 Air Quality Improvement Trust
Fund ($14.80) - Account No. 555-310-0000-4741 for a total of
$69,535.80.
COST OF THE VEHICLES
City staff did extensiveresearch on the costs and types of
vehicles available. It was found that Tuttle Click Ford in Irvine
provided the most economical flex -fueled vehicle due to the fact'
that they were awarded the bid by the State of California (Contract
No. 1-93-23-10). At the request of staff, the dealership has agreed
to sell the automobiles to us for the same price. By buying
directly from them, we will save one percent (1%) in processing
fees, which we normally pay when we buy from. the State of
California. The City will purchase six (6) 1993 Ford Tauruses.
The total cost for each vehicle is $11,589.30, including tax.
Total cost for the six vehicles, including tax, is $69,535.80.
RECOMMENDATION
It is recommended that the City Council, a) Approve the
appropriation of $25,000.00 from Prop. C and $44,535.80 .from AB
2766 Air Quality Improvement Trust Fund; and (b) approve the
purchase of six (6) flex -fueled 1993 Ford Tauruses, from Tuttle
Click Ford in Irvine, for a total cost of $69,535.80.
,o
5.
Abrah W. Koniaraky
Fin ce Director
SG: vs
Michael L. Miller
Environmental Services Director