CITY OF BURBANK

PURPOSE:

To obtain City Council approval for accepting grant funds from the South Coast Air Quality Management District Carl Moyer Program (SCAQMD), Mobile Source Air Pollution Reduction Review Committee (MSRC), and California Energy Commission (CEC) for the construction of the compressed natural gas (CNG) fueling station and purchase of CNG vehicles, and amending the FY 2003-04 budget to appropriate the grant funds.

BACKGROUND:

On September 18, 2001, the City Council approved resolutions 26,099 and 26,100 authorizing the City Manager to apply for grant funding and execute agreements with the California Energy Commission (CEC) and the SCAQMD for a total of $355,000 in grant funds for the for the construction of a CNG fuel station. 

On October 23, 2001, the City Council approved resolutions 26,117 and 26,118 authorizing the City Manager to apply for grant funding and execute agreements with the SCAQMD and MSRC for additional grant funding totaling $585,520 for CNG station construction and CNG vehicle purchases. The SCAQMD grant funds totaling $144,270 go towards CNG heavy truck purchases over the next two years.  Of the $441,250 in MSRC grant funding, $360,000 is for CNG vehicle purchases, and $81,250 was for fuel station construction.  During the grant application review, an additional $45,500 was awarded to the City, bringing the total funds from MSRC for station construction to $126,750.

On July 23, 2002, the City Council approved resolution 26,281 authorizing the City Manager to apply for additional grant funding and execute agreements again with the SCAQMD and MSRC for a total of $237,000 for the purchase of CNG heavy and medium duty vehicles.   

ANALYSIS:

These grants presented a financial opportunity for the City of Burbank to offset the costs of constructing a state of the art CNG fueling station and for the purchase of CNG vehicles.

In total, the City is receiving $301,270 from SCAQMD and $440,000 from MSRC for CNG vehicles.  The City is also receiving $230,000 from SCAQMD, $126,750 from MSRC, and $125,000 from CEC for station construction. 

The CNG fueling station was commissioned for 24-hour, seven days per week public service in April 2003.  It supports the City�s current and planned CNG fleet including street sweepers, chippers, flatbeds, leaf loaders, refuse haulers and passenger vehicles that operate throughout the Burbank/Glendale areas.  The station has been operating continuously with only a few minor problems.  Monthly throughput at the station currently averages 11,522 gallons per month, with a projected maximum of 40,000 gallons per month. 

The CNG vehicles are being purchased in stages.  The City has already placed 33 CNG vehicles (light, medium and heavy-duty) in service and has 23 more on order.  Over the next 4 years, an additional 48 CNG vehicles will be placed in service. 

Staff will continue to pursue any grant opportunity for the purchase of CNG, hybrid and hydrogen fueled vehicles.

FISCAL IMPACT:

The total vehicle grant funding of $741,270 ($301,270 from SCAQMD and $440,000 from MSRC) for CNG vehicle purchases will offset approximately 52% of the estimated $1,478,000 in �up charge� costs for CNG vehicle purchases over the next two years.  The �up charge� is the difference between the cost of traditional gasoline or diesel powered vehicles and the higher cost of the CNG vehicles. 

The total station construction grant funding of $481,750 ($230,000 from SCAQMD, $126,750 from MSRC, and $125,000 from CEC) will offset 98% of the City�s $491,495 total cost for CNG fuel station construction.  The station itself was $896,495, however the design-builder contributed $405,000 toward the construction of the station.

The proposed resolution accepts the vehicle grant funding of $741,270 and the CNG station grant funding of $481,750.  The resolution also amends the FY 2003-04 budget to appropriate the $481,750 in grants for the station construction from revenue account number 532-ND000-48010-1999-000000 (miscellaneous grant revenue) to expenditure account 532-PW34A-15032.  This is to reimburse the expenditure account from which the City fronted the funds to build the station.  The vehicle grant funding of $741,270 will be deposited into account number 532-ND000-48010-1999-000000 (miscellaneous grant revenue), reimbursing the Vehicle Equipment Replacement Fund.  

RECOMMENDATION:

Staff recommends that the City Council adopt the proposed resolution. 

go to the top