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Council Agenda - City of BurbankTuesday, May 2, 2006Agenda Item - 2 |
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Council Agenda - City of BurbankTuesday, May 2, 2006Agenda Item - 2 |
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PURPOSE
The purpose of this report is to request City Council approval authorizing the City Manager to execute a grant agreement with the South Coast Air Quality Management District (AQMD); to accept grant funds from AQMD in the amount of $252,000, and the Metropolitan Transportation Authority (MTA) in the amount of $376,200; and to appropriate $100,000 funds from AQMD, AB2766 �Rideshare� Fund, and $556,200 from the Vehicle Equipment Replacement Fund to front the grant dollars for the purchase of compressed natural gas (CNG) buses. This report also requests the Redevelopment Agency Board approval to appropriate $394,043 for the purchase of CNG buses; and to amend the Fiscal Year 2005-06 Budget.
BACKGROUND
In June 2004, City Council directed staff to create a Transit Services Task Force to assess and make recommendations to the existing transit services, to better serve residents and reduce congestion in Burbank. On January 25, 2005, a plan for expansion of the BurbankBus commuter service was developed and presented to City Council. City Council approved the recommendations set forth by the Transit Services Task Force, and implementation of expansion plan was completed by November 1, 2005.
On April 19, 2005, City Council was updated on the expanded services and was asked for direction on implementation of Phases II and III of the expansion plan. Discussion ensued regarding diesel fueled buses and alternative fueled buses. Council directed staff to pursue any available alternative fuel buses, however, the Council agreed to not hold up the expansion plan if alternative fuel buses where not available for lease.
On June 2005, Phase II of the transit expansion plan was implemented. This phase converted the two demand responsive service areas to two separate fixed routes, the Downtown and Airport/Empire lines. This conversion of service was critical to the overall expansion plan, as a significant number of commuters began populating the Airport/Empire area. On October 31, 2005, Phase III was initiated. A new service line from the North Hollywood Redline Station into the Empire/Airport area was implemented.
These services support the City�s goals: 1) to reduce the number of vehicles on City streets by promoting alternate means of transportation; and 2) to maintain and enhance the City�s economic well-being, by providing infrastructure conducive to business retention and attraction within the City. One of the proposed funding sources is the Redevelopment Agency. As seen in the city-wide service map (Exhibit A), the BurbankBus system serves the City�s primary employment centers, which are all located in and adjacent to the Golden State, West Olive and City Centre Redevelopment Project Areas.
ANALYSIS
A minimum of thirteen (13) fleet vehicles are needed to operate the five BurbankBus fixed-route services. Currently, the City owns seven (7) of the 13 buses, with a contractor supplying the additional six (6) buses. It is the City�s intent to own all of the buses used in the transportation programs, and the City is committed to purchasing alternative fuel vehicles.
The BurbankBus expansion was implemented on an aggressive schedule. The implementation of all routes was slightly delayed due to the lack of available equipment; however, the contractor was successful in leasing older CNG buses, thus able to complete the implementation plan. Although the BurbankBus fleet is alternative fueled, the leased equipment is aged and experiences more down time than average, and has been a source of complaints from passengers.
Staff has located a viable option to purchase five (5) 35ft CNG buses from a Federal Transit Administration approved competitive bid, from Sunset Empire Transit District in Oregon. Staff believes that the best option to replace the existing CNG buses is to piggy-back on this competitive bid. By piggy-backing on this purchase, staff will not have to go out to bid, thus greatly reducing the receiving time. Staff anticipates a delivery time of eight (8) months or 240 days. The purchase price is also favorable, as it is based on a 2003 competitive bid from a public agency, with the award made to the low bidder. Subsequent price increases due to escalation are minimal vs. increases in the commodity markets for the same period. Staff has received a letter of assignment for five CNG buses from this competitive bid.
The cost per CNG bus is $333,202.91, including sales tax. The cost of five (5) buses is $1,666,014.55. In addition, staff seeks to purchase a maintenance diagnostic package at a total cost of $9,228.31. The total amount needed to purchase the buses would be $1,675,243.
The City has been successful in obtaining grant funding from AQMD for seven (7) alternative fueled buses, covering the incremental costs between diesel and CNG engine, in the amount of $252,000. Of those funds, staff can apply $180,000 toward this purchase. This is a reimbursable grant. The City has also received $376,200 of Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) funding under the Transportation Appropriations Bill, however these funds are distributed over four years. The MTA administers the distribution of these funds. Staff proposes that the Vehicle Equipment Replacement Fund front the grant dollars for this purchase, and upon receiving the grant dollars, the Fund will be reimbursed.
City Council has also provided an additional $225,000 from the Traffic and Transportation Reserve Funds, in addition to $400,000 from the General Fund unappropriated fund balance. Total funding available to-date is $1,181,200.
The funding gap between the total purchase package and the available resources is $494,043. Staff has identified the following two additional funding sources to bridge the gap of the entire purchase; AQMD funding from the AB 2766 �Rideshare� Fund in the amount of $100,000, and $394,043 from the Redevelopment Agency.
Should the proposed acquisition be approved, a fund transfer from Fund 106 (the AQMD, AB 2766 �Rideshare� fund) to the General Fund will be necessary. In order for the Redevelopment Agency to assist in funding the shortfall, the Agency could provide $394,043 by reimbursing a portion of one of its loans with the City, specifically part of a City Centre Project Area loan. If the purchase is authorized, $394,043 will be transferred from the Redevelopment Agency Merged Project Area Fund to the City�s General Fund. The funds will then be transferred into the Vehicle Equipment Replacement Fund to purchase the buses. This will be done via a proposed Cooperation Agreement between the City and Redevelopment Agency. FISCAL IMPACT
The total amount needed to purchase the buses is $1,675,243. The secured funding to date is $1,181,200, as listed below.
General Fund $400,000 Sub-Total of Funding Sources $1,181,200
This leaves a funding gap of $494,043. Staff has carefully looked into every feasible funding option to finance the purchase of the CNG buses and recommends the shortfall be funded by Fund 106 (AQMD, AB2766 �Rideshare� Fund) in the amount of $100,000; and $394,043 from the Redevelopment Agency�s Fund 306 as described above, as the other viable funding source to complete the purchase.
The proposed resolution accepts the vehicle grant funding of $376,200 from MTA and $252,000 from AQMD. The resolution also amends the FY2005-06 budget to appropriate the following:
RECOMMENDATION
Staff recommends the approval of resolutions authorizing the City Manager to execute a grant agreement with the South Coast Air Quality Management District (AQMD); accept grant funds from AQMD in the amount of $252,000, and the Metropolitan Transportation Authority (MTA) in the amount of $376,200; and appropriate $100,000 from the AQMD AB2766 �Rideshare� Fund and $556,200 from the Vehicle Equipment Replacement Fund for the purchase of CNG buses. This report also requests the Redevelopment Agency Board approval to appropriate $394,043 for the purchase of (CNG) buses; and to amend the Fiscal Year 2005-06 Budget.
ATTACHMENTS
Exhibit A � BurbankBus Route Map Grant Agreement between the City of Burbank and AQMD
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