Agenda Item Wording:
title
Accept a San Joaquin Valley Air Pollution Control District Grant - Confirm acceptance and authorize the City Manager to sign a contract to accept $120,832 in SJVAPCD grant funds for the purchase of an all-electric solid waste truck.
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Deadline for Action: 4/7/2025
Submitting Department: Public Works
Contact Name and Phone Number: Jason Serpa, Public Works Manager, jason.serpa@visalia.city, 713-4533 Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
It is recommended that the City Council confirm acceptance and authorize the City Manager to sign a contract to accept $120,832 in SJVAPCD grant funds for the purchase of an all-electric solid waste truck.
Background Discussion:
On October 7, 2024, City Council authorized the adoption of Resolution No. 2024-55 approving the application for a San Joaquin Valley Air Pollution Control District (SJVAPCD) grant for the purchase of an all-electric solid waste truck. This grant has been approved for an amount of $120,832.38 and it is being considered for usein the SJVAPCD Truck Replacement Program to offset the cost of a new Peterbilt 520EV. However, staff is still assessing options.
With the state mandated Advanced Clean Fleet Regulations in mind, this grant would aid with the requirement to transition to zero-emission vehicles. The acceptance of this grant does not guarantee or commit the City to purchase a vehicle through this program. Rather, the acceptance of the grant merely secures the funding on behalf of the City.
Staff have worked with SJVAPCD toward the possible decommissioning of one of Solid Waste fleet’s older vehicles that qualifies by year model. The Truck Replacement Program Grant requires that the truck being dismantled be a 2019 or older engine model year. The 2015 model year truck designated in the contract is due to be replaced this fiscal year.
Staff will continue to monitor
Timeline for SJVAPCD Truck Replacement Program grant process:
1. City Council approval for grant application (Completed)
2. Grant application is submitted (Completed)
3. Sign contract with SJVAPCD for 12-month purchase window period (current authorization)
4. Return to Council with Air Board contract for approval of purchase and appropriation of funds(possible future consideration)
5. Purchase of truck (possible future consideration)
As shown in the timeline above, City staff will need to return to Council at a later date to appropriate funds for the purchase of the electric truck while keeping in mind the delivery time within the 12-month period. Knowing that truck build lead times are approximately 6-8 months from order date, to comply with grant deadlines, notwithstanding extensions, staff will bring back a purchase authorization to Council within the next 4 months.
City Staff continues to research and observe other jurisdictions’ electric trucks, while exploring other available funding and purchase options. With and eye on the ZEV milestones legislation, it is important that the City continues to keep the zero emission option open when considering the future of the City fleet.
Note: The twelve-month purchase period after contract execution stipulates that the truck must be purchased and put into service within that time frame. There is no obligation to follow through with a purchase, even after the contract is signed. All funds are on a reimbursement basis from the Air Board.
Fiscal Impact:
The Truck Replacement Program requires the dismantling of an internal combustion engine that is 2019 or older. For this contract, a 2015 CNG side load truck will be de-commissioned after the new EV Purchase. In most cases, when a similar truck is replaced, it is claimed by the Fleet department and auctioned. The historical amount of the auction proceeds averages from $5,000 to $10,000 per truck since most of the CNG trucks need new CNG tanks at the time of replacement. In this case, the Air Board requires that the truck be disassembled and not used again.
Even though the action of accepting the grant does not obligate the City to purchase an electric truck, it is important to understand the impact to the Solid Waste Enterprise Fund. The purchase authorization and appropriation of funds for this new Capital Improvement Project will be requested on a future staff report if staff intends to seek Council approval for the purchase. The impact of the grant proceeds is shown below:
|
CIP Project # |
Price of EV Truck |
Grant Proceeds |
Remaining |
|
NEW |
$728,761 |
$120,832 |
$607,929 |
The grant amount awarded is impacted by several factors. These factors are:
• The amount of mileage driven each year on the truck being replaced.
• The type of engine being replaced.
o The City is replacing a CNG engine. A diesel engine that operated without additive would have qualified for the maximum amount.
• The model year of the truck being replaced. The older the replaced truck, the more grant funding the City would receive.
For reference, a similarly equipped internal combustion solid waste truck would cost the City $461,600, making this electric truck cost $146,329.00 more after grant proceeds.
Prior Council Action: October 7, 2024 - City Council authorized the adoption of Resolution No. 2024-55, approving the application for a San Joaquin Valley Air Pollution Control District (SJVAPCD) grant for the purchase of an all-electric solid waste truck.
Other: N/A
Alternatives: To not accept the San Joaquin Valley Air Pollution Control District grant for the purchase of an all-electric solid waste truck.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to confirm acceptance and authorize the City Manager to execute a contract in the amount of $120,832 with the San Joaquin Valley Air Pollution Control District to receive grant funds for the purchase of an all-electric solid waste truck.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
-SJVAPCD Truck Replacement Program Contract
-Resolution 2024-55