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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 u h .rl V a, 5 u u a, 0. L al I+ CH k urn h aa ala a am GO E *: cocd E rnw m‘ Oh mb0 IO I+k ma G.2 r a, a0 0 *7i d *4 -7i L) L) Gu .rl G a -4 UG au aa a 1k ocd oa 4 m \ .. N \ h g F 0 4 1 0 rm 3 0 0 ‘1 DEPT. t ,+ i GI1 WP GAHL5WW - AGtNU ILL 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 I 1 2 3 4 5 6 7 8 9 10 I1 12 13 14 15 I.6 17 18 19 20 21 22 23 24 25 26 27 28 m 0 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 I1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 e e 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) 25 24 26 27 28 I I e 0 .. < .. 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 e 0 .. 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 a e 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 r 0 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 $3,000 to convert a Iight-duty vehicle to natural gas. In a “bi-fuel” vehicle, a fuel selector switch allows the driver to choose designed and dedicated to run only on natural gas obtain improved mileage and performance, as well as reduced emissions and maintenance costs. By the mid-l990’s, many vehicles are ex- pected to be factory-built to run on compressed natural gas. Q Who is most likely to use NGVs? A Natural gas is an ideal fuel for fleet vehicles like buses, delivery vans, and service trucks. Natural gas is especially attractive for larger, heavier vehicles since they can more easily accommodate the fuel storage cylinders. location for fueling, the present limited public availability of CNG fueling stations is not a problem. NGVs comply with clei meet current and fut el regulations. NGVs play an important role in the California Air are safer and stronger than gasoline tanks. dequate to serve dequate under any penetration scenar According to a Department of Energy studj there is at least a 35-year supply of natural at today’s prices. Others estimate that the resource base may last over 100 years. SDGl small network of ( NG more accessit natural gas or the back-up fuel system. NGVs Q HOW does compressed natural A mere are basically five “clean” alter native fuels recognized in state and federal legislation and regulations: compressed nat gas, methanol, ethenol, propane and electr Here’s how they compare: Emissions: Compressed natural gas is 101 than all fuels except electricj than all fuels except electric] Compressed natural gas and pane are the most economic f Because most of these fleets return to a central Safety: Compressed natural gas is sa - SD$@