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<br />Item No: 8A <br />Meeting Date:07/24/06 <br />Type of Business:CA <br /> WK: Work Session; PH: Public Hearing; <br /> CA: Consent Agenda; CB: Council Business <br /> <br />City of Mounds View Staff Report <br /> <br /> <br /> <br />To: Honorable Mayor and City Council <br />From: Tim Pittman, Public Works Supervisor <br /> <br />Item Title/Subject: Resolution No. 6881 Approving the Removal of Propane <br />Tank and Filling Station <br /> <br />Meeting Date: 07/24/06 <br /> <br /> Background: <br />In the mid 1980’s the City of Mounds View was very pro-active into the alternate <br />fuels. This due to the rising cost of gasoline and the Environmental Pollution <br />Agency (EPA) talk of a Clean Air Act law that was going to be mandated that <br />would affect all government agencies to have at least 40% of their fleet on an <br />alternate fuel. With this information that the city was receiving, all city vehicles <br />including police squads were converted to propane. The cost averaged about <br />$800.00 per vehicle to convert to run on propane when initially introduced. With <br />the complete fleet on propane and minimal fueling stations available to <br />accommodate the City of Mounds View s needs, in 1991 the City of Mounds <br />View leased to own a 12,000 – gallon propane tank and filling station that would <br />replace the existing 1000 gallon tank that was insufficient and not cost effective <br />to serve the fleet. This practice continued until 1995 when problems were <br />developing due to technology. The computer that is installed with a conversion kit <br />was not capable of keeping up with the vehicles onboard factory installed <br />computer. This creating performance problems and damage to the fleet, staff <br />also looked at the cost of propane verses gasoline which was competitive, and <br />the cost of a conversion kit that was now about $2500.00 per vehicle not <br />including staffs time to install. The Environmental Pollution Agency (EPA) has not <br />made mention of this subject since the late 1990’s. <br /> <br />Discussion: <br />Staff has been asked to determine if it is in the City of Mounds View’s best <br />interest to keep the 12,000 gallon propane tank and filling station. At this time <br />there is only (1) vehicle left in the fleet that runs on propane, this vehicle is to be <br />removed from the fleet in 2007 according to the vehicle replacement policy. The <br />cost of a conversion kit for a new vehicle is approximately $3700.00 not including <br />installation, the cost of propane as of 7/05/06 is $1.90 per gallon. Staff contacted <br />the original supplier/installer of the 12,000 gallon tank and filling station