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).

BACKGROUND:

Council appropriated $400,000 in the Fiscal Year 2005-06 Budget for the design and construction of a time-till Compressed Natural Gas (CNG) fueling station at the City of Burbank Corporate Yard (Yard) at 124 S. Lake Street. 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. This grant application was approved by the AQMD Governing Board on March 3, 2006. Staff received contract number ML06030 in June 2006.

On September 12, 2006, staff presented a report to Council recommending acceptance of grant funding from AQMD/MSRC in the amount of $287,700 and requesting an additional budget appropriation in the amount of $403,912 to complete the funding package for the construction of a time-fill CNG fueling station at the Yard.  At that time, Council did not approve the resolution request and asked staff to conduct a cost/benefit analysis comparing the development options for a public fast-fill CNG fueling station and various types of time-fill fueling facilities (high performance and low performance).

ANALYSIS:

The MSRC grant funding totaling $287,700 presents a financial opportunity for the City to partially fund the construction of a state of the art time-fill fueling station. However, the grant has yet to be fully executed and may be retracted by the granting agency if it is not signed by March 8, 2007.

Staff has almost completed its evaluation of different types of CNG fueling facilities, and plans to return to Council in the near future.  However, in the meantime, it is important that the grant contract be executed in order to secure the funds. The contract stipulates that a construction award must be made within six months of contract execution. The design for a high performance time-fill station has already been completed; therefore, if Council approves the project after staff submits its cost/benefit analysis, staff will be able to award a construction contract within the allowed timeframe.

If Council requests staff proceed with a low performance time-fill station, the design will need to be altered to reflect the changes from high to low performance. These design changes would not require excessive time to make, and staff would be able to award the construction contract in a timely manner.

This grant is not applicable to a public fast-fill CNG fueling facility, and would have to be terminated in the event Council chooses to build a fast-fill station. The City would not suffer any penalty from the granting agency for this.  

FISCAL IMPACT:

The MSRC grant is payable after completion of the project and will reimburse the Refuse Fund $287,700 once the fueling station is built.  If the City Council approves construction  of a time-fill station staff will accept the grant monies as part of the 2007-2008 Fiscal Year Budget.

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).

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