Title
Resolution to Approve a Contract to Accept Grant Funds from the Clean Energy Coalition's Michigan Green Fleet Project ($540,500.00 Federal Funds)
Memorandum
The attached resolution will authorize a grant agreement with the Clean Energy Coalition to reimburse the City up to $540,500.00 for the incremental cost to purchase alternative fuel vehicles and advanced technology vehicles.
On August 26, 2009, the Clean Energy Coalition (CEC) announced it was awarded $14.97 Million in grant funds from the US Department of Energy as part of the American Recovery & Reinvestment Act (ARRA). These funds are for the CEC's "Michigan Green Fleet" project to expand the use of alternative fueled and advanced technology vehicles and infrastructure across Michigan. The Fleet and Facility Unit of the Public Services Area partnered with CEC on its application for this grant for the purchase of compressed natural gas powered and hybrid vehicles for the City's fleet.
The City will contribute an estimated $1,305,500.00 towards the purchase of replacement vehicles over the next two years and will use grant funds to offset the additional cost of ordering these vehicles with hybrid technology and/or alternative fuel power plants.
At its December 21, 2009 meeting, City Council approved the purchase of four hydraulic launch assist recycle trucks and two plug-in electric hybrid bucket trucks. Funds from this grant will be used to pay the incremental cost for these advanced technologies in the amount of $156,728.00 for the recycle trucks and $150,000.00 for the bucket trucks. After the completion of these purchases, a total of $233,772.00 of grant funds will be available for future purchases which must be completed by December 31, 2011.
Staff
Prepared By: Thomas A Gibbons, Financial Analyst - Fleet & Facilities Unit
Reviewed By: Matthew J. Kulhanek, Fleet & Facilities Manager, Sue F. McCormick, Public Services Administrator
Approved By: Roger W. Fraser, City Administrator
Body
Whereas, The City of Ann Arbor's Green Fleet Policy calls for the City to purchase the most cost-effective and lowest emission vehicle or equipment possible, while still meeting the operational requirements of the service units;
Whereas, The purchase of alternative fuel vehicles and advanced technology vehicles contribute to the goals of the City's Green Fleet Policy;
Whereas, The City of Ann Arbor has been awarded $540,500.00 as part of the Clean Energy Coalition's Michigan Green Fleet Program to promote job creation and provide economic benefits to the State and City by spurring technological advances in transportation and environmental protection;
Whereas, The City Council approved resolution R-09-502 for the purchase of four recycle trucks with hydraulic launch assist hybrid systems and resolution R-09-503 for the purchase of two bucket trucks with plug-in electric hybrid systems;
Whereas, Upon the completion of the purchase of the recycle trucks the Clean Energy Coalition will use grant funds to reimburse the City $156,728.00 for the hybrid systems with these funds being returned to the Solid Waste Enterprise Fund;
Whereas, Upon the completion of the purchase of the bucket trucks the Clean Energy Coalition will use grant funds to reimburse the City $150,000.00 for the hybrid systems with these funds being returned to the Majors Streets Fund;
Whereas, The remaining $233,772.00 of the $540,500.00 grant funds will be used to pay the incremental cost of advanced technologies and/or alternative fuel powered replacement vehicles for the City's fleet purchases completed by December 31, 2011; and
RESOLVED, That City Council approve the grant contract for the reimbursement of up to $540,500.00 from the Clean Energy Coalition's Michigan Green Fleet Program;
RESOLVED, That the Mayor and City Clerk be authorized and directed to sign the sub grantee agreement with the Clean Energy Coalition after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.