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 (SCAQMD) Clean Transportation Funding from the Mobile Source Air Pollution Reduction Review Committee (MSRC) and to accept grant funds in the amount of $125,000 to assist in funding the purchase of five (5) CNG-fueled refuse trucks.

BACKGROUND:

Following regularly scheduled equipment replacement and procurement procedures for the City, staff will be replacing five (5) refuse trucks in fiscal years 2006-07 and 2007-08. The SCAQMD�s Fleet Rule 1193 requires public and private solid waste collection fleets to acquire alternative-fuel refuse collection heavy-duty vehicles. In accordance with this rule, staff will be purchasing CNG refuse trucks.

In August 2006, the City�s Fleet Board of Directors adopted a policy to pursue all viable grant funding opportunities for alternative fuel vehicles when it is in the best interest of the City. In accordance with this policy, staff applied for grant funding from Clean Transportation Funding from the MSRC to help fund the purchase of five (5) CNG refuse vehicles.

The SCAQMD Governing Board approved funding for five (5) CNG refuse trucks in the amount of $125,000 on December 1, 2006. Staff received contract documents for this grant on February 23, 2007.  

ANALYSIS:

In researching refuse truck vendors, staff became aware of a Request for Quotes (RFQ) that was recently issued by the City of Los Angeles, California.  This RFQ detailed the same requirements that the City of Burbank would have otherwise issued in an RFQ of its own.  After going through a formal competitive bid process, the City of Los Angeles selected the lowest responsible bidder, Peck Road Truck Sales, to provide their refuse trucks.

The Public Works Department and Purchasing reviewed the City of Los Angeles� RFQ, the selected vendor and the contract.  Staff verified that Peck Road Truck Sales would honor all the prices in their contract with Los Angeles for the City of Burbank. Staff expects to begin receiving the first of the five (5) CNG refuse trucks in June 2007 and will receive the remaining four (4) vehicles in two week increments for each after delivery of the first truck.

Alternate fuel vehicles (AFV) are more expensive to manufacture than traditional diesel fueled vehicles. This latest grant, administered by the SCAQMD, presents a financial opportunity for the City to offset the costs for CNG vehicle purchases and aids in meeting both the needs of the City and in meeting the requirements of Fleet Rule 1193.

Currently, the City operates 21 CNG refuse trucks, all of which were purchased with the aid of grant funding from SCAQMD. Staff has consistently met the contract requirements for each of the City�s previous grant agreements with SCAQMD, and continues to strive to do so with current projects.  

FISCAL IMPACT:

The price per CNG refuse truck is $229,104.62, including tax, which comes to a total of $1,145,523.10 for all five (5) vehicles.  The total amount of available funding for this purchase is $1,146,000.00 (account number 498.PW31A.15101 - Refuse Collection Vehicle Clearing).

On March 6, 2007, Council approved a mid-year appropriation in the amount of $121,000.00 to help fund the purchase of these vehicles.  The $125,000 in grant funds will be made available to the City upon completion of the project. Those funds will be deposited into revenue account number 498.PW000.48010.1094 to reimburse Fund 498 for the mid-year appropriation made in Fiscal Year 2006-07. The resolution shall also authorize acceptance of grant funding at the time of project completion. 

RECOMMENDATION:

Staff recommends that the Council adopt the proposed resolution.   

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