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HomeMy WebLinkAboutB- 7 MSRC (Mobile Source Air Pollution Reduction review Committee( Local Governmet Match Program ffi de)' 6 4 or ZUSA AGENDA ITEM TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: BILL NAKASONE, DIRECTOR OF PUBLIC WORKS VIA: RICK COLE, CITY MANAGER JOE HSU, DIRECTOR OF UTILITIES DATE: NOVEMBER 18, 2002 SUBJECT: MSRC (MOBILE SOURCE AIR POLLUTION REDUCTION REVIEW COMMITTEE) LOCAL GOVERNMENT MATCH PROGRAM - FUNDING OPPORTUNITY FOR PURCHASE OF MEDIUM DUTY AND HEAVY DUTY VEHICLES. RECOMMENDATION It is recommended that the City Council of the City of Azusa approve and adopt the attached Resolution authorizing application for grant funds through the MSRC Local Government Match Program. Participation in the Local Government Match Program empowers the City of Azusa to receive a $50,000 reimbursement on the purchase of four trucks that qualify as "ultra low emission vehicles" (ULEV's). BACKGROUND The MSRC will be accepting applications from local municipalities for participation in the Local Government Match Program commencing on December 1, 2002. The purpose of this program is to encourage local agencies to purchase "ultra low emission vehicles" (ULEV's). Present legislation only requires that local government fleet operators purchase vehicles that qualify as "low emission vehicles" (LEV's). Generally speaking, the initial cost of "ultra low emission vehicles" is considerably higher than its "low emission vehicle" counterpart. The MSRC has created the following incentives to help offset the initial price disadvantage; Qualifying Medium Duty Trucks - $10,000 reimbursement per unit. Qualifying Heavy Duty Trucks - $20,000 reimbursement per unit. The Department of Public Works is currently budgeted to purchase three CNG (compressed natural gas) powered medium duty pick up trucks. These trucks will be allocated as follows; two to the Parks Division and one to the Streets Division. Additionally, the Community Services Department (Transportation Division) is budgeted to purchase one CNG powered heavy duty Cutaway chassis with a bus body. FISCAL IMPACT The Department of Public Works will receive a $30,000 reimbursement from the MSRC for purchase of three CNG powered medium duty trucks ($10,000 reimbursement per unit). This will reduce the purchase price for all three trucks from an initial amount of $105,000 down to $75,000. This places the purchase price for the three ULEV 's approximately $3,000 less per unit than the cost of three equivalent LEV's. The Transportation Division will receive a $20,000 reimbursement from the MSRC for purchase of one CNG powered heavy duty cutaway chassis with a bus body. This will reduce the purchase price for one heavy duty ULEV from an initial amount of $72,000 down to $52,000. The $20,000 reimbursement will place the purchase price of ULEV cutaway chassis with bus body equivalent to that of its LEV brethren.