City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: September 19, 2023
ITEM NO: 5.9
SUBJECT: Approve the Replacement & Surplus of 2007 Diesel Freight Liner Truck & Chipper Box (Vehicle #4) with new CARB compliant truck & Authorize a Budget Adjustment in the Amount of $101,545.45.
RECOMMENDATION
Motion to Approve the Replacement & Surplus of 2007 Diesel Freight Liner Truck & Chipper Box (Vehicle #4) with new CARB compliant truck & Authorize a Budget Adjustment in the Amount of $101,545.45.
BACKGROUND
The California Air Resources Board (CARB) has implemented several regulations and compliance programs aimed at reducing emissions from heavy-duty diesel vehicles operating in the state. These regulations are part of California's broader efforts to improve air quality and combat climate change. Here are some key aspects of CARB compliance for heavy-duty diesel vehicles:
Truck and Bus Regulation: CARB's Truck and Bus Regulation requires owners of heavy-duty diesel vehicles (weighing over 14,000 pounds) to install diesel particulate filters (DPFs) or upgrade to cleaner vehicles. The regulation is designed to reduce emissions of particulate matter and oxides of nitrogen (NOx), which are major contributors to air pollution.
On-Road Heavy-Duty Diesel Vehicles: CARB sets emissions standards for on-road heavy-duty diesel vehicles, including trucks and buses. These standards specify the maximum allowable emissions levels for NOx and particulate matter.
The City of Patterson operates a fleet of trucks essential for maintaining the city’s infrastructure.
As part of our commitment to environmental sustainability, air quality improvement, and regulatory compliance, the organization regularly evaluates the environmental impact and compliance status of our vehicles.
One of our trucks, vehicles, truck #4, a 2007 Freightliner, which has been in service for 16 years, is currently out of compliance with the particulate matter filter requirements. This noncompliance poses several significant issues:
Environmental Impact: The out-of-compliance truck emits higher levels of particulate matter, contributing to air pollution and potentially impacting public health and environmental quality in our community.
Reputation: Operating a non-compliant vehicle may negatively affect our organization's reputation, especially considering our commitment to environmental responsibility.
Regulatory Risk: Continued operation of the non-compliant truck exposes the city of Patterson to regulatory risks, including potential fines, penalties, and legal liabilities.
ANALYSIS
Environmental Benefits: Replacing the out-of-compliance truck with a compliant one will lead to a significant reduction in emissions of particulate matter, improving local air quality. The reduced emissions align with the city of Patterson’s sustainability goals and contribute to the broader effort to combat climate change and protect public health.
Regulatory Compliance: Operating a compliant truck ensures that the city of Patterson remains in full compliance with all relevant environmental and emissions regulations. Compliance eliminates the risk of fines, penalties, and legal actions, which could have financial and reputational consequences.
Community and Stakeholder Relations: Replacing the non-compliant truck demonstrates the city of Patterson’s commitment to environmental stewardship and responsibility to our community. It aligns with the expectations of stakeholders, including residents, regulatory authorities, and environmentally conscious customers.
Resale and Asset Value: The existing out-of-compliance truck's resale value is likely to diminish over time due to its non-compliant status. Reselling it now and replacing it with a compliant truck may yield better financial returns for the city of Patterson.
To address these concerns and fulfill our obligations to the community, staff is proposing to replace truck #4 with a new, CARB compliant 2022 Ram 5500 Crew Cab DRW 4x4, Scelzi body Chipper Truck.
FISCAL IMPACT
The price of the new truck is $121,545.45 and will be funded by a 50% cost split between garbage and general fund.
Savings from FY 23/24 budgeted in General Fund 100-781-7560 for chipper unit in the amount of $20,000 will be used towards the costs of this truck unit. Therefore, a difference in the amount of $101,545.45 is needed.
Total Cost = $121,545.45
Savings Amount = $20,000
Funds Needed = $101,545.45
50% Garbage (600-790-7560) Fund = $50,772.73
50% General (100-781-7560) Fund = $50,772.73
Once the new unit is in service, truck #4 will be put up for online auction out of state. Estimated revenue from the sale is approximately $20,000 and will be allocated to the General Fund.