Title
Resolution to Accept Grant and Appropriate Funds from the Michigan Department of Transportation for Biofuel Stations ($232,672.00 Federal Funds) and Approve Sub-Grants (8 votes required)
Memorandum
The attached resolution will authorize a grant agreement with the Michigan Department of Transportation (MDOT) to accept a $232,672.00 grant for the City of Ann Arbor to sponsor the Clean Energy Coalition to install six biofuel pumps at five sites in Washtenaw County. This federal “CMAQ” grant will be administered through MDOT and will provide funding for 3 public E-85 stations, 2 public biodiesel stations, and a private E-85 pump for the City of Ann Arbor municipal fleet. Grant funds will pay for 80% of the installation costs for these biofuel stations, with 20% provided by the station owners. The resolution will authorize sub-grant agreements with the Clean Energy Coalition and with four public fueling stations for the project. The total project cost will be $290,840.00.
For federal CMAQ funds, a non-profit is allowed to apply for a grant but must find an “Act 51 Sponsor” (a governmental agency) to assume all legal and financial liabilities for the project. The City of Ann Arbor agreed to sponsor the Clean Energy Coalition’s grant application because it closely matches our goals of encouraging renewable energy use in our community and because the City of Ann Arbor is a member of the Ann Arbor Area Clean Cities Coalition, a US Department of Energy Program to encourage renewable fuel use, that is now managed by the Clean Energy Coalition. Clean Energy Coalition will serve as the project manager for this project with the City of Ann Arbor serving as the “Act 51 Sponsor”.
The City will enter into sub-grantee agreements with all parties to ensure that roles and responsibilities are legally defined. As shown on the attached table, all biofuel station owners will contribute 20% cash cost for the installations with federal funds paying the rest. The Clean ...
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