HomeMy WebLinkAbout1991-07-02; City Council; 11233; AGREEMENT WITH SAN DIEGO GAS AND ELECTRIC COMPANY TO PARTICIPATE IN THE COMPRESSED NATURAL GAS ALTERNATIVE FUEL DEMONSTRATION PROGRAMrn
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AB#- ~AAG~E~~ m sm DIEm GAS AND
DEPT. U&M ALTERNATIVE FUEL DEMONSTRATION PROGRAM CITY M
RECOMMENDED ACTION:
MTG. 7/2/91 ELECTRIC COMPANY (SDG&E) TO PARTICIPATE CITY AI IN THE COMPRESSED NATURAL GAS (CNG)
y/,.;”’f Adopt Resolution No. authorizing the Mayor to execute an agreement with San
Diego Gas and Electric Company to use two vehicles for participation in an Alternative
Fuel Program.
ITEM FXPLANATION:
San Diego Gas and Electric Company has made available to various agencies
throughout the County, vehicles equipped to burn compressed natural gas (CNG).
Among other benefits derived from this Program, it provides the opportunity for
various agencies to become acquainted with this form of alternative fuel. This Program
has a term of thirty to sixty days. For this demonstration, two vehicles have been
requested. One vehicle is requested for Street Supervisors; approximate usage 800
miles per month. The other vehicle is requested for U&M Administration; approximate
usage 1100 miles per month. These two uses will represent the typical use for
passenger sedans in City service.
The Agreement has been approved as to form by the City Attorney and insurance
clauses have been approved by the Risk Manager.
The Agreement will be completed and executed by SDG&E after the City Council
approves participation in the program.
FISCAL IMPACT:
There is little or no direct fiscal impact. The vehicle loan is without fee; however, the
user agency must furnish fuel and insurance. The insurance costs are estimated to be
$43.00 per month per vehicle and costs will be ‘‘passed through” to the user divisions.
Fuel and maintenance costs would be offset by the fuel and maintenance savings from
the fleet vehicles which would not be utilized. Since the refueling station is located
on Sycamore Avenue in Vista, it is estimated that an additional 45 minutes will be
required for travel time at each refueling.
EXHIBITS:
fl/,aiY h 1. Resolution No. / aut odzhg partidpath in the Alternative Fuel Program.
2. Proposed Agreement
3. CNG vehicle program information
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RESOLUTION NO. 9l-208
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING
PARTICIPATION IN THE ALTERNATIVE FUEL PROGRAM
WHEREAS, the San Diego Gas & Electric Company has made
available to various agencies throughout the County alternative fuel vehicles; and
WHEREAS, the type of alternative fuel used in this test is compressed
natural gas (CNG);
WHEREAS, the City of Carlsbad, Utilities & Maintenance Department
has selected two vehicles for a demonstration project of approximately ninety days;
and,
WHEREAS, the cost to the City for the fuel will be offset by the
displaced vehicles;
WHEREAS, the cost to the City for insurance will be approximately
$43 per month, per vehicle;
NOW THEREFORE BE IT RESOLVED by the City Council of the City
of Carlsbad, California as follows:
1)
2)
The above recitations are true and correct.
The Mayor is authorized to execute an Agreement with the
San Diego Gas and Electric Company to participate in the Alternative Fuel
Demonstration Program.
EXHIBIT 1
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the
, 1991 by the City Council of the City of Carlsbad on the 2nd day of
following, vote to wit:
July
AYES: Council Members Lewis, Kulchin, Larson, Stanton and
Nygaard
NOES: None
ABSENT: None
ATTEST:
&xt- $. R- ALETHA L. RAUTENKRANZ, City Cl&k
(SEAL)
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MEMORANDUM OF AGReEMENT
RE: LOAN OF NATURAL GAS VEHICLES
This Memorandum of Agreement ("Memorandum") is entered into this
day of Y 19-Y by and between
("Customer") and is
San Diego Gas & Electric Company ("Company") and
made with reference to the following facts:
A. Company has acquired and has had equipped for operation on .
natural gas ("NG") new ("Vehicle( s)") described as follows:
Value Serial No. Manufacturer Style
$
$
B. This Company is desirous of familiarizing employees and
officials of Customer about the benefits of NG Vehicle(s) and
accordingly is willing to loan Vehicle(s) to the Customer and to
provide refueling facilities for vehicles during the loan period.
C. The Customer wishes to accept the loan of Vehicle(s) in
order that its employees and officials can evaluate and experience the
operation of NG operated Vehicle(s).
NOW, THEREFORE, the Parties hereby agree as follows:
1. Company agrees to loan Vehicle(s) to Customer for a
term of ending y from delivery
date of the Vehicle.
\
2. Company shall deliver Vehicle(s) to Customer at
on or about
3. There shall be no charge to Customer for the use of
Vehicle(s) during the term of this Memorandum. The Customer will bear
any and all costs and expenses incurred in connection with Vehicle(s)'
operation, including required insurance, the cost of natural gas and
the cost of gasoline. Maintenance shall be furnished by the Company.
4. Employees and officials of the Customer may refuel
Vehicle(s) at Company's refueling station after they have been trained
in refueling procedures by Company personnel.
5. The Customer shall be responsible for supervising and
controlling the use of Vehicle(s) during the term of this loan. The
Customer shall not permit operation of Vehicle(s) after mechanical
failure or where further operation would be unsafe or cause damage to
Vehicle(s).
EXHIBIT 2
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1. -,
6. Customer will limit the use of Vehicle(s) to properly
licensed and trained operators.
7. Company shall provide driver training upon request, to
ensure that operators are familiar with the method of operation of
Vehicle(s).
8. Customer agrees not to modify Vehicle(s) without prior
written consent of Company.
9. Customer shall obtain (or continue existing coverage in .
force) and maintain at Customer's own expense, commercial general
liability insurance. Said insurance shall include contractual
liability coverage with limits of not less than $1,000,000 for bodily
injury and property damage combined, and automobile liability
insurance to include automobile contractual liability coverage and
physical damage coverage for the vehicle with limits of not less than
$1,000,000 for bodily injury and property damage combined, as will
protect Customer and Company from claims which may arise out of or
result from Customer's possession, operation, and/or use of the
vehicles. All such insurance shall include Company as an additional
named insured, shall be primary for all purposes, and certificates of
insurance evidencing such coverage shall be filed with Company prior
to the commencement of the loan term. Customer and Company will
cooperate with each other and with any insurance company to prevent
loss in the handling of claims and proceedings involving the vehicles.
Customer will discharge its obligations under insurance policies to
assure prompt and full coverage. In lieu of requirement of Customer
to purchase, or continue existing coverage in force, Customer may
provide evidence to the satisfaction of Company of self-insurance
equivalent to or exceeding the minimums specified in this section.
10. Customer agrees to comply with all federal, state and
local laws or regulations concerning custody, use and operation of the
Vehicle (s) and to hold Company free and harmless from any loss or
damage resulting from failure to do so including, but not limited to,
fines, forfeitures and penalties incurred by reason of use of the
Vehicle (s).
Customer assumes all responsibility and liability of
whatever character including damage to the Vehicle (s) due to
collision or upset arising from or in connection with Customer's use
and operation of the Vehicle (s). Customer agrees to indemnify, defend and hold harmless Company and its subsidiaries and their
respective officers, employees, agents and insurers, from and against
all liabilities, losses, claims, damages, legal fees, suits, costs and
e * I.
expenses, or judgement of any nature from personal injuries or death
or for the loss or damage to the property of any person (including
Company, Customer and their respective officers, employees, and
agents) arising out of Customer's transportation, use, possession, and
operation of the Vehicle (s), except those which are attributable to
Company's or the manufacturer's sole negligence.
11. Company will pay all taxes, license, permit and
certificate fees required for lawful operation of Vehicle(s) by
Customer and will not require reimbursement for any such expenses.
12. Ownership of Vehicle (s) shall remain vested in '
Company. Customer shall not take any security, lien, or other
interest in Vehicle (s) nor permit any other party to acquire any
interest adverse to Company.
13. Notices shall be deemed given when mailed first class
certified mail, return receipt requested to each party at the the
following addresses:
Company Customer
San Diego Gas & Electric Company
Attn: Neil W. Sybert Attn:
P. 0. Box 1831
San Diego, CA 92112
14. It is understood between the parties that Customer
shall have the exclusive authority to designate which employees and
officials use Vehicle(s) during the term of this Memorandum, subject
only to the provisions of the Memorandum as set forth above. Company
shall not in any way limit or dictate the use of the Vehicle(s) to
specified officials or employees.
IN WITNESS WHEREOF, Company and Customer have caused this
Memorandum of Agreement to be executed as of the Agreement date set
forth above.
COMPANY : CUSTOMER :
SAN DIEGO GAS & ELECTRIC COMPANY
By : By:
Title: Title:
1, . 6.
It is already being used in vehicles
around the world. There are more
than 500,000 NGVs worldwide, and
over 30,000 NGVs operating in the US.
SDG&E's Use of NGVs
uSeS ~JGV~ in its own fleet, including
natural gas powered sedans, pick-up
trucks and Broncos. SDG&E is work-
Natural gas is a safe and abu
fuel, domestically produced, ar
subject to price control by fore
suppliers.
Natural gas is economical for
fleet vehicles, delivery vans, sc
vehicles that refuel at a central
location.
Natural Cas Iehicles
The Fuful)e is Here 'Ow
It is increasingly obvious that
gasoline and diesel-powered vehicles,
along with hard-to-break driving
skies. Sow more than ever, federal
and state air quality regulators are
looking to cleaner-burning alternative
habits. are taking a heavy toll on our Sari Diego Gas & Electric Company buses, public transit buses and
fuels to clean up the dirty air and
smoggy skies. Satural gas vehicles
ing with customers to demonstrate
NGV technology while also under-
Natural Gas - Part of
Clean Air Future Now
SDG&E is pleased to be usir
NGVs to help improve Sari Die
quality. We look forward to der
strating the technology to our
users incorporate natural gas f
stations into their current mix
site fueling options. NGVs . . . fr
cleaner San Diego skies.
(Conrinued 01~
(NGVs) can help improve San Diego's
air quality now and in the future.
taking research projects aimed at
natural gas engine performance and
emissions enhancement.
A Viable Option Now
A Key Role in the Solution
Natural gas, the fuel most people
associate with home heating and cook-
ing, may prove to be a new transpor-
tation fuel. As a clean-burning vehicle
fuel, natural gas can play an important
part in the solution to air pollution.
to Air Pollution customers, and to helping new
Natural gas vehicles reduce ozone
forming Pollutants by 50 Percent,
reduce carbon monoxide by 90 Per-
cent, and reduce nitrogen oxides by
33 percent when compared with to-
day's gasoline powered vehicles. EXHIBIT 3
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Specification Sheet for Demonstration Natural Gas Vehicle
Automobile Type:
Engine Type:
1990 Ford Taurus LX, 4-Door Sedan
3.8 Litre Fuel Injected V6
140 Horsepower
Converted to Compressed Nati
182 Cubic Inch Displacement by San Diego Gas & Electric C
CNG Conversion Equipment: Automotive Natural Gas, Inc. (ANGI) Milton, Wisconsin
CNG Fuel Supply System: (1) 13x35 Cylinder & Shenvood Tank Valves with V;
1/4 Turn Hoke Valve to Shutoff
Feedback Control
(1) 10x40 Cylinder Seals
Fiberglass-Wrapped Steel Cylinders
by Pressed Steel Tank Co., Inc.
Total Weight: 302 lbs. Full
Total Capacity: 1028 Cubic Feet at
3,000 psi
(257 lbs., Empty)
Range: 200+ miles on CNG and
200+ miles on gasoline
Cost of fuel Supply System
and Conversion:
$2,000 - $2,300 Installed
GO 1G3C 5M
NATURAL GAS
San Diego Gas & Elect
truck or bus which uses natural gas to fuel its
engine. Currently, most NGVs are bi-fuel, having
the ability to switch between natural gas or
Q What are the major advantages of
naturalgas as a vehicle fuel?
A Natural gas burns cleaner than most
alternative fuels. It produces virtually no par-
ticulates and low levels of other pollutants
such as carbon monoxide, nitrogen oxides and
reactive organic gases.
Natural gas is cheaper per gallon equivalent
than gasoline. Natural gas, including compres-
sion costs, can be 25 to 50 percent cheaper
than gasoline and as much as 50 percent less
than other alternative vehicle fuels.
Natural gas is safer than most other vehicle
fuels. Because it’s lighter than air, natural gas
unlikely event of a leak. Gasoline and other
ny NGVs on the fi
vehicle fuel has a sa
cord in Europe, Car
New Zealand, Australia, and most recently
A NGVS can be fueled through a “slow
compressor in five to eight hours. Larger u
with a “fast fill” compressor and fuel stor;
will safely dissipate into the atmosphere in the system are able to fuel NGVs in three to fii
(continued 01
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Q Is driving around with the cylin-
ders full of compressed natural gas
dangerous?
A The fuel storage cylinders, usually car-
ried under the vehicle or in the storage area,
Made of aluminum or steel, reinforced with
fiberglass wrapping, the cylinders have been
subjected to bullet- and bonfire-testing, as well
as drops from 100 feet above the ground. In all
tests, the cylinders have exceeded U.S. Depart-
ment of Transportation safety standards.
Q How much does it cost to convert
a vehicle to natural gas?
A Conversion companies typically charge
about $2,500 to $3,000 to convert a Iight-duty
vehicle to natural gas. In a “bi-fuel” vehicle, a
fuel selector switch allows the driver to choose
designed and dedicated to run only on natural
gas obtain improved mileage and performance,
as well as reduced emissions and maintenance
costs. By the mid-l990’s, many vehicles are ex-
pected to be factory-built to run on compressed
natural gas.
Q Who is most likely to use NGVs?
A Natural gas is an ideal fuel for fleet
vehicles like buses, delivery vans, and service
trucks. Natural gas is especially attractive for
larger, heavier vehicles since they can more
easily accommodate the fuel storage cylinders.
location for fueling, the present limited public
availability of CNG fueling stations is not a
problem.
NGVs comply with clei
meet current and fut
el regulations. NGVs
play an important role in the California Air
are safer and stronger than gasoline tanks.
dequate to serve
dequate under any
penetration scenar
According to a Department of Energy studj
there is at least a 35-year supply of natural
at today’s prices. Others estimate that the
resource base may last over 100 years. SDGl
small network of (
NG more accessit
natural gas or the back-up fuel system. NGVs
Q HOW does compressed natural
A mere are basically five “clean” alter
native fuels recognized in state and federal
legislation and regulations: compressed nat
gas, methanol, ethenol, propane and electr
Here’s how they compare:
Emissions: Compressed natural gas is 101
than all fuels except electricj
than all fuels except electric]
Compressed natural gas and
pane are the most economic f
Because most of these fleets return to a central Safety: Compressed natural gas is sa
- SD$@