HomeMy WebLinkAboutAgenda Report - May 6, 1998 (79)AGENDA TITLE: Use of City TDA Funds for Construction of Compressed Natural Gas Station in Lodi
($26,667)
MEETING DATE: May 6, 1998
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution authorizing the use of
$26,667 in TDA funds to help defray the construction cost of the
Compressed Natural Gas (CNG) Station in Lodi in exchange for a lower
fuel cost.
BACKGROUND INFORMATION: The Department of Energy has been working to reduce our nation's
dependence on foreign oil. Lodi falls under the
Environment Protection Act rules. No rules on municipalities have
been formalized but, for cities like Lodi, the proposal is to require
that by 2002 twenty percent of all vehicles purchased be alternatively fueled. After 2002, the
percentages will go up.
Lodi's Public Works Department is pursuing a CNG program now because Fleetstar, Inc. is willing to
invest over $250,000 in a CNG station in Lodi. It is anyone's guess whether funding for fueling stations
will be available in the next century. As it is, the San Joaquin Valley Unified Air Pollution Control District
(SJVUAPCD) no longer accepts applications for fueling stations.
The fast -fill CNG station, to be located at E. F. Kludt & Sons on Pine Street and Cluff Avenue, will serve
the needs of the City's transit fleet, Caltrans, the U. S. Postal Service, and the Lodi Unified School District.
A station of this capacity costs about $250,000.
Fleetstar, a SJVUAPCD funding recipient, was willing to invest in Lodi because the Public Works Department
has secured funding for over $1,100,000 for new CNG buses and CNG conversions. As part of the
negotiations, Fleetstar is willing to lower its fuel price if Lodi's Public Works Department agrees to help
defray the construction cost. The Public Works Department recommends contributing $26,667 to the
Fleetstar CNG fast -fill station project. Within two years, the cost will be made up by the lower fuel cost.
FUNDING: Funding from TDA fund balance to pay for part of the construction at a cost of $26,667.
Funding available:
Finance Direct6r
,,iu C ,
Richard C. Prima r.
Public Works Director
Prepared by Carlos Tobar, Transportation Manager
RCP/CFT/lm
Attachment
cc: City Attorney
APPROVED:
H. Dixon F ynn -- City Man er
CTDACNGSTA.DOC 04/28/98
RESOLUTION NO. 98-64
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE
USE OF TDA FUNDS TO HELP DEFRAY CONSTRUCTION COSTS
OF A COMPRESSED NATURAL GAS (CNG) STATION IN LODI
WHEREAS, the Department of Energy has been working to reduce our nation's
dependence on foreign oil; and
WHEREAS, the proposal for cities like Lodi would be to require that twenty percent
of all vehicles purchased be alternatively fueled by the year 2002; and
WHEREAS, the Public Works Department is pursuing a CNG program now
because Fleetstar Inc. is willing to invest over $250,000.00 in a CNG station in Lodi; and
WHEREAS, the fast -fill CNG station is to be located at E. F. Kludt & Sons on Pine
Street and Cluff Avenue and will serve the needs of the City's transit fleet, Caltrans, the
U.S. Postal Service and the Lodi Unified School District; and
WHEREAS, Fleetstar, a SJVUAPCD funding recipient, will invest in Lodi due to the
fact that the Public Works Department has secured over $1,100,000.00 in funding for new
CNG buses and CNG conversions; and
WHEREAS, Fleetstar is willing to lower its fuel price if the City agrees to help
defray the construction cost.
BE IT RESOLVED, that the Lodi City Council hereby approves the use of
Transportation Development Act (TDA) Funds in the amount of $26,667.00 to help defray
construction costs of a Compressed Natural Gas Station in Lodi in exchange for a lower
fuel cost.
Dated: May 6, 1998
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I hereby certify that Resolution No. 98-64 was passed and adopted by the Lodi
City Council in a regular meeting held May 6, 1998 by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Land, Mann and Sieglock (Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - Pennino
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ALICE M. RErMCHE
City Clerk
98-64