Council Agenda - City of Burbank

Tuesday, November 4, 2003

Agenda Item - 5

 

CITY OF BURBANK

PUBLIC WORKS DEPARTMENT

MEMORANDUM
 

 
DATE: November 4, 2003
TO: Mary Alvord, City Manager
FROM:

Bruce S. Feng, Deputy City Manager/Public Works & Capital Projects

by: Bob Van Hazelen, Assistant Public Works Director �Fleet & Building
SUBJECT: RESOLUTION ACCEPTING THE SECOND INSTALLMENT OF GRANT FUNDS FROM THE CALIFORNIA AIR RESOURCES BOARD FOR THE LEASE OF ELECTRIC VEHICLES. 

                        PURPOSE:

 

To request City Council approval to accept the second installment of grant funds from the California Air Resources Board (ARB), via the South Coast Air Quality Management District, for the lease of twelve zero emission electric vehicles (ZEV).  

 

BACKGROUND:

 

On March 26, 2002, the City Council adopted resolution 26,211 approving a three-year lease agreement with Toyota Motor Sales Inc. for twelve RAV-4 electric vehicles and authorizing the City Manager to apply for grant funding from the California Air Resources Board (ARB).  On August 26, 2002 staff was notified that the City had been successful in obtaining a grant in the amount of $108,000, the maximum allowed.

 

On December 10, 2002 City Council adopted resolution 26,390 accepting the first installment of grant funds from ARB and amending the FY 02-03 budget to appropriate the grant funds.

 

ANALYSIS:

 

The ZEV Incentive Program is designed to provide incentives for the lease or purchase of new certified zero emission passenger cars or light-duty vehicles.  Electric RAV-4s typically cost approximately $12,000 to $13,000 more than gasoline powered RAV-4s.  The three-year lease of the twelve vehicles qualified the City for a grant of $9,000 per vehicle.  The total grant amount for the twelve electric RAV-4s is $108,000, payable in 3 annual installments.

 

 

FISCAL IMPACT:

 

Each RAV-4 three-year lease cost the City $23,242.50.  The grand total for leasing twelve new RAV-4s was $278,910.  The City paid for the three-year leases for all twelve RAV-4s up front.  The grant will reimburse the City $9,000 per vehicle, bringing the cost of each vehicle down to $14,242.50.  With the $108,000 in grant funds, the total cost to the City for the RAV-4 three-year leases is reduced to $170,910. 

 

Payment under this grant shall be made in three annual installments of $36,000 each.  This is the second installment of $36,000.

 

RECOMMENDATION:

 

Staff recommends that the City Council adopt the resolution accepting the second installment of grant funds from the California Air Resources Board for the lease of electric vehicles.  

 

 

 

 

 

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