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HomeMy WebLinkAbout1997-01-14 - AGENDA REPORTS - ALTERNATIVE FUEL VEHICLE (2)City Manager Item to be pre Ken Pulskamp CONSENT CALENDAR DATE: January 14, 1997 SUBJECT: INFORMATIONAL UPDATE ON CITY ALTERNATIVE FUEL VEHICLE PROGRAM / PROPOSED PURCHASE OF ELECTRIC VEHICLES DEPARTMENT: Public Works During the last two years, City staff have been actively reviewing and researching new technologies associated with alternative fuel vehicles for eventual inclusion within the City's Vehicle Fleet. The inclusion of alternative fuel vehicles within municipal vehicle fleets has been strongly recommended at the state and federal level. Additionally, the Air Quality Element of the City's General Plan has established goals to reduce vehicle emissions by promoting the use of alternative fuel vehicles within the City's vehicle fleet. Based upon these mandates and the requirements of the South Coast Air Quality Management Districts' (SCAQMD) 1994 Air Quality Management Plan, in September 1995 the Public Works Department completed an "Alternative Fuels Report." This report provides the City with an overview of the existing technology, and. suggestions for the types of alternative fuel vehicles that would be appropriate for use in the City's Vehicle and Transit Fleet. The specific requirements of the SCAQMD 1994 Air Quality Management Plan calls for zero emission vehicles to comprise 2% of all California vehicle sales by 1998. Further, urban transit bus fleets within the SCAQMD must consist of 70% alternative fuel/reformulated fuel vehicles and 30% electric vehicles by the year 2010. Detailed analysis of the choices available to the City are outlined in the City's "Alternative Fuels Report." At this time, staff believes that the City should pursue the acquisition of electric vehicles (EV) for its smaller fleet vehicles (automobiles, light trucks) and Compressed Natural Gas (CNG) for its large fleet vehicles (primarily transit vehicles). Further, staff believes that the use of non-traditional financing methods (with an emphasis on developing joint Public/Private Partnerships) should be utilized to the greatest extent possible when purchasing these types of alternative fuel vehicles. 001 Agenda Item.- Consistent with the approach described above, staff is recommending that the City Council authorize the City Manager to lease two (2) electric vehicles, purchase two (2) vehicle charging stations, and purchase a transformer unit for the charging stations proposed to be installed at the City Hall facility. At this time General Motors has made its new electric vehicle (EVI) available to consumers through a three (3) year lease agreement. The EV 1 is presently not available for purchase as the projected lifespan of the vehicle's battery packs is approximately three years. Thus, the term of the lease period directly corresponds to the vehicle's fuel cell. After reviewing the monthly lease payment and single payment (prepaid) options, it is staff's recommendation that the City take advantage of the cost savings incurred through the single payment option. The single payment option reduces the cost of the lease by $1,500, to a total cost of $17,085.60 per vehicle. This figure includes an $5,000 Air Quality District allowance and a $3,400 Federal Tax credit that has been applied to the cost of leasing the vehicle. The costs savings incurred by the City will more than offset the cost of the two charging stations that will be needed to "refuel" these vehicles. The charging stations are specifically produced for the EV 1 and provide the vehicle with an inductive type charge as opposed to a traditional conductive charge. The inductive charging system is far more cost efficient and safe in comparison to the 110 volt charge found in an conductive charge. Further, the Edison Charging Station will recharge the EVl in 4 to 6 hours, as opposed to approximately sixteen (16) hours on a standard 110 volt charge. Currently, staff projects that the two proposed charging stations will be located at City Hall. Lastly, it is important to note that the lease agreement for each vehicle provide a warranty covering all maintenance on the autos and the charging stations. The EV 1 is the only production vehicle currently available that meets the Zero Emission Vehicle standard. These vehicles have a cruising range of 70-90. miles, emit no pollutants and are noiseless. Further, the EVl is extremely economical in comparison to traditional fossil fuel vehicles. The EVl has an average operational cost of $0.01 per mile, as opposed to fossil fuel vehicles which have an average operational cost of $0.06 per mile. Finally, staff anticipates that these vehicles will be assigned to the Building and Engineering Department, and will be utilized by the City's Building Inspection staff. That the City Council authorize the City Manager to expend funds that have been appropriated to Account Number 4211-8615 for the purpose of : 1) leasing two (2) electric vehicles for a three (3) year period at a total cost of $37,171.20; and 2) the purchase and installation of two (2) charging stations and a transformer unit at a total cost not to exceed $14,500. N.\MSIKTONOIAN\P WADMINW LTFUEL.AGN