PURPOSE:

To obtain Council approval of a resolution authorizing the City Manager to execute a grant agreement with the California Air Resources Board (ARB) and to accept grant funds in the amount of $216,748 to assist in funding the purchase of a low emission scraper.

BACKGROUND:

Following regularly scheduled equipment replacement and procurement procedures for the City, staff will be replacing one (1) scraper in fiscal year 2007-08. Concurrently, the ARB is proposing implementation of a regulation that would require all construction fleets in California to adhere to a phase in schedule of newer, cleaner construction equipment. In anticipation of this rule, staff will be purchasing a scraper with a Best Available Control Technology (BACT) Tier 3 engine and a Verified Diesel Emission Control System (VDECS).

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 ARB to help fund the purchase of a low emission scraper. The ARB has awarded the City of Burbank a grant in the amount of $216,748. Staff received notice and contract documents for this grant on May 15, 2007.  

ANALYSIS:

Staff is currently researching piggyback purchase opportunities for the acquisition of this scraper. If one is not available, staff will proceed by writing specifications and going through a formal competitive bid process for the purchase.

In order to comply with the requirements of the grant, the City must complete the purchase of a low emission scraper by June 30, 2008. Staff will not have any difficulty in adhering to this schedule regardless of whether a piggyback purchase is made, or if staff must go out to bid.

FISCAL IMPACT:

Staff has received a preliminary cost estimate of $765,181.36, including tax, from Quinn Company for a new low emission scraper. Staff also received a preliminary cost estimate of $15,002.88, including tax, for the installation of a VDECS, as stipulated in the ARB grant contract.  During the budget process for Fiscal Year 2007-08, staff requested funding in the amount of $950,000 for this purchase, which should be available July 1, 2007 in account number 498.PW31B.15101 - Refuse Disposal Vehicle Clearing.

The $216,748 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.PW000.48010.1097 to reimburse Fund 498 for a portion of the FY 2007-08 budget appropriation. 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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