HomeMy WebLinkAbout13 - BA-037 - AQMD Subvension Funds for Electric Vehicle ProgramTO:
LWO&Wp
Mayor and City Council
General Services Director
City Council Agenda
Item No. 13
April 9, 2002
SUBJECT: Budget Amendment to Appropriate Additional AQMD Subvention Funds for
Electric Vehicle Program.
Recommendation
Approve the attached budget amendment in the amount of $58,438 from the AQMD Subvention
Fund unappropriated balance to fund lease costs associated with the Electric Vehicle Program
Background
The City currently operates 20 electric vehicles (EV) that are leased from either Honda or Toyota
Motor Company. The EV is considered a zero emission vehicle produced by the automobile
industry in response to requirements mandated by California law. The City EV program began
in 1998 with the lease of 17 vehicles and is one of the largest municipal EV fleets in California.
In 1999, three vehicles were added to the fleet in the Police and Planning Departments for a total
of 20 vehicles.
Seventeen of the twenty EV leases have since expired. Twelve of the expired leases have been
extended for a one -year term, while five of the vehicles have since been replaced with more
recent EV models such as the 2001 Toyota RAV.
However, the current budget appropriation has been sufficient to fund only a portion of the
expenses. Additional funding is needed at this time to pay the remainder of the program's
financial obligations that are due by the end of the current fiscal year.
Discussion
The current budget appropriation is not sufficient to pay all lease costs through the end of the
fiscal year. During the current fiscal year, monthly payments have been made on EV leases with
the exception of five vehicles, which were paid in lump sum amounts. A total of $19,325 is
needed to cover the lump sum payments.
An additional $39,113 is needed to pay fees that will be due on twelve of the vehicles by June
30. This amount will fund monthly lease payments on both Toyota and Honda EV's through
June 30. hi addition, the proposed budget amendment will fund costs to deliver two 2001/02
Toyota RAV EV's as replacements for two Honda EV's in June, as well as fund a seven -month
lease extension on one Honda through December 2002. The phasing out of the Honda EV Plus
is necessary as a result of Honda's intention to terminate the EV Plus lease program in December
2002.
In short, a total of $58,438 is needed to pay remaining program expenditures through June 30,
2002. Adequate funds are available in the AB2766 Subvention Fund to provide for this
expenditure.
By the end of the current fiscal year, a total of seven Honda's will have been replaced. Monthly
lease rates for these seven vehicles will have nearly doubled from the previous Honda rate of
$300 per month to the rate of $599 per month for a Toyota RAV. However, the City is eligible to
apply for rebates from the California Air Resources Board that will recover 40% of the increase.
Staff is in the process of applying for rebates that will return $21,000 this fiscal year to the
AQMD Subvention Fund from which the EV program is fully funded. No City funds are
expended on the EV program.
Very respectfully,
David E. Niederhaus
Attachment: Proposed Budget Amendment
CITY OF NEWPORT BEACH
REQUESTS FOR FUNDS
Date April 9. 2002
TO: Administrative Services Director
FROM: General Services Director
SUBJECT: Request for Funds
Request for additional funds, $58.438
Funds are available in the current budget.
Additional appropriation to the account numbers noted below is requested:
Air Quality Management District (Division 2766)
2766 -8270 Electric Vehicles Program $58,438
Funds are required to pay lease obligations for twelve (12) electric vehicles.
General Services Director
Approv d:
i
City Manager
Administrative Services Director
City of Newport Beach
BUDGET AMENDMENT
2001 -02
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from unappropriated fund balance
EXPLANATION:
NO. BA- 037
AMOUNT: $58,438.00
Increase in Budgetary Fund Balance
AND X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations by transferring funds from the AQMD Fund.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund . Account
290 3605
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Account
Division
Account
Division
Account
Division
Account
Division
Account
Signed:
Signed:
Signed:
Description
AQMD Fund
Description
Description
Number 2766 AQMD
Number 8270 Electric Vehicle Program
Number
Number
Number
Number
Number
Number
Number
Number
�eh 4
'
Financial Approval: Administrative Ser
Administrative prou I: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$58,438.00
$58,438.00
e 3 -z9 -o.7
ire r Date
Date
Date