HomeMy WebLinkAbout08 - CNG-Powered Van for OASISCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
October 26, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Municipal Operations Department
Mark Harmon, Municipal Operations Director
949 - 644 -3055, mharmon @newportbeachca.gov
SUBJECT: Budget Amendment for the Purchase of a CNG- Powered Van for
OASIS
RECOMMENDATION:
Consider a budget amendment in the amount of $27,976 to utilize Air Quality
Management District (AQMD) funds for an increase in cost due to the selection of CNG
power for an OASIS van scheduled for replacement.
DISCUSSION:
The FY 09 -10 Budget included funds to purchase a replacement van for OASIS. The
purchase was not completed, as staff was waiting for the CNG station to commence
operations and to evaluate the feasibility of purchasing a CNG - powered van instead of a
gasoline - powered one. Administrative Services Department encumbered $70,847 for
the purchase into FY 10 -11 Budget.
The van being replaced is a 2003 model with over 166,000 miles on the odometer.
Staff from the Municipal Operations and Recreation and Senior Services Departments
recently met to discuss the purchase. Both departments were in agreement that a
CNG - powered van is the best option at this time for a number of reasons.
The OASIS vans accumulate the highest mileage of any non - Police Department
vehicles in the City fleet, averaging 20,000 miles per= year. The difference in cost of
CNG fuel over gasoline (currently $1.75 /gasoline gallon equivalent for CNG vs.
$2.73 /gallon for gasoline) will generate operating cost savings over the lifetime of the
van.
Additionally, these vans frequently operate in residential neighborhoods and idle at
stops as the clients are being assisted into or out of the vehicle. While gasoline-
Budget Amendment for the Purchase of a
CNG- Powered Van for OASIS
October 26, 2010
Page 2
powered vehicles are much cleaner than in past, CNG vehicles have no noticeable
exhaust fumes.
A third reason for the purchase is the fact that a "green" vehicle fits in well with the new
OASIS center, which was designed around energy- saving green concepts.
Funding Availability:
The cost of a CNG - powered van is $98,823 including tax. Staff is requesting a budget
amendment in the amount of $27,976 from unappropriated AQMD subvention funds.
These AQMD funds are generated through a $4.00 surcharge on annual vehicle license
fees paid by vehicle owners. Forty percent of these funds are returned to cities and
counties to be used specifically for clean air programs. The current balance of this
AQMD fund is over $425,000. Funding the incremental cost of CNG vehicles qualifies
for this use.
Environmental Review:
This action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant
to Sections 15060(c)(3) — the activity is not a project as defined in Section 15378 of the
CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has
no potential for resulting in physical change to the environment, directly or indirectly.
Public Notice:
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Prepared by:
8
ike Pisani
Deputy Municipal Operations Director
Attachment: Budget Amendment
Municipal Operations Director
City of Newport Beach
BUDGET AMENDMENT
2010 -11
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
NX from future bond proceeds
EXPLANATION:
NO. BA- 11BA -015
AMOUNT: $27,97s.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the fallowing:
To increase expenditure appropriations in the Air Quality Management District Fund to cover an increase in cost due to the
selection of CNG power for an OASIS van scheduled for replacement.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Amount
Fund Account
Description
Debit Credit
290 3605
Air Quality Management District Fund Balance
$27,976.00 '
REVENUE ESTIMATES (3601)
Fund /Division Account
Description
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 2766
A.Q.M.D. Division
Account Number 9100
Rolling Equipment
$27,976.00
Division Number
Account Number
Division Number
Account Number
Division Number
Account Number
' Automatic System Entry.
Signed: 1-W
F' Halal Appro
I: Administr
tiv ces ' ector
Date
Signed:
�Of 1$ rt7
Administr ' e Approval:
City Manad`4
Date
Signed:
City Council Approval: City Clerk
Date