PURPOSE:

To obtain Council approval of a resolution authorizing the City Manager to execute a grant agreement with the South Coast Air Quality Management District (AQMD) Clean Transportation Funding from the Mobile Source Air Pollution Reduction Review Committee (MSRC); to accept grant funds from AQMD/MSRC in the amount of $287,700; to appropriate $403,912; and to amend the Fiscal Year 2006-07 Budget.

BACKGROUND:

Council appropriated $400,000 in the Fiscal Year 2005-06 Budget for the design and construction of a Time-Fill Compressed Natural Gas (CNG) fueling station at the City of Burbank Corporate Yard (Yard). This station will allow refuse trucks to fuel overnight at the Yard, rather than at the busy City-owned public access facility.  Due to an increase in anticipated construction costs, an additional appropriation of $175,000 was approved by Council as part of the Fiscal Year 2006-07 Budget.

In January 2006, staff applied for grant funding in the amount of $287,700 from the MSRC as part of a local government match program. On March 3, 2006, the AQMD Governing Board approved funding for the project in the amount of $287,700. 

ANALYSIS:

The MSRC grant funding totaling $287,700 presents a financial opportunity for the City to help pay for some of the additional work and higher construction costs due to inflation that are associated with the construction of a state of the art fueling station.  This grant funding will be paid to the City upon completion of the project.  Therefore, staff is requesting a budget appropriation of $287,700 to front some of the costs associated with building the fueling facility.

Preliminary engineering estimates for construction were figured at $575,000. However, due to certain unknown conditions at the outset of the project, such as location of the station, distance from gas and electrical service feeders, and certain design elements added to enhance safety and productivity, the engineer�s original estimate did not encompass all costs unique to the needs of the City of Burbank�s CNG Time-Fill station.  In addition, due to significant increased costs of construction materials that are being experienced in all City projects including steel, concrete, electrical materials and labor costs, the estimated cost for the station has risen by $345,000.  These increased costs are detailed below in Table 1.  The new estimated construction cost for the station is $920,000.

Table 1

Increased Construction Costs

FISCAL IMPACT:

The total project cost, including design and construction, is $978,912 as specified below:

            Design (90% Complete)                                  $58,912

            Construction (including inflation,                   $920,000

            additional elements and maintenance)                       

            Project Total                                                 $978,912

Currently, the project has secured funds in the amount of $575,000. This leaves a funding gap of $403,912.  Staff has identified $403,912 in the unappropriated 498 Fund (Refuse Fund) balance to complete the project.  The MSRC grant will reimburse the Refuse Fund $287,700 once the project is completed.

The proposed resolution accepts the MSRC grant funding of $287,700, and also amends the 2006-07 Fiscal Year Budget to appropriate $403,912 from 498.ND000.30004.0000.000000 (Unappropriated Refuse Fund) into account number 498.PW31A.15022.0000.15718 (CNG Time-Fill Station Project).  Upon receipt of the reimbursement money from MSRC, $287,700 will be deposited into account number 498.PW000.48010.0000.000000 to reimburse the Refuse Fund.  

RECOMMENDATION:

Staff recommends Council approve the resolution authorizing the City Manager to execute a grant agreement with the South Coast Air Quality Management District (AQMD) Clean Transportation Funding from the Mobile Source Air Pollution Reduction Review Committee (MSRC); to accept grant funds from AQMD/MSRC in the amount of $287,700; to appropriate $403,912; and to amend the Fiscal Year 2006-07 Budget.

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