Title
Resolution to Accept Grant Funds from the American Lung Association and Appropriate to the Climate Action Millage Fund to reimburse $667,621.00 for the Purchase of Two Electric Refuse Trucks ($667,621.00) (8 Votes Required)
Memorandum
Attached for your review and consideration is a resolution to accept and appropriate $667,621.00 in federal pass-through grant funding from the American Lung Association to reimburse the Climate Action Millage for funding allocated to support the purchase of two electric refuse trucks. The City worked with the American Lung Association to apply for this funding nearly 15 months ago and was notified on November 21, 2024 that funding in the amount of $667,621.00 was being awarded to the City to support the purchase of two electric refuse trucks.
Recognizing the long-lead times for electric vehicles, especially heavy-duty vehicles, the City proactively ordered these two electric refuse trucks via R-23-376. In that Resolution, City Council authorized the spending of $1,483,601.78 for the two electric refuse trucks, with funding coming from the following:
• $397,567.00 from the FY 2024 Fleet Services Fund Operations and Maintenance budget
• $741,800.89 from the FY 2024 Climate Action Millage budget
• $344,233.89 from the FY 2025 Climate Action Millage budget
The American Lung Association grant award would cover 45% ($667,621.00) of the cost for these trucks and would reimburse the Community Climate Action Millage budget for its contribution to the purchase.
Budget/Fiscal Impact: Funds from this grant award will be used to reimburse the Climate Action Millage Fund in the amount of $667,621.00 for a portion of the two electric refuse trucks ordered after approval by City Council via R-23-376.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Manager
Reviewed by: Matthew Kulhanek, Fleet & Facilities Manager
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Kim Buselmeier, Interim Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council approved Resolution 23-376 for the purchase of two side automated side-load electric refuse trucks from Fredrickson Supply in October 2023;
Whereas, Ann Arbor City Council unanimously adopted the A2ZERO Plan in June 2020, which calls for 90% fleet electrification by 2025;
Whereas, City staff applied for and successfully won a Diesel Emissions Reduction Act grant award in the amount of $667,621.00 through a collaboration with the American Lung Association;
Whereas, This grant will cover 45% of the cost of acquiring two electric refuse trucks; and
Whereas, These trucks will help reduce local emissions, update our fleet, and help advance our A2ZERO goal;
RESOLVED, That City Council accept this pass-through grant award from the American Lung Association, from the Diesel Emissions Reduction Act, for the purpose of purchasing two electric refuse trucks;
RESOLVED, That City Council appropriates $667,621.00 at the time of receipt of the revenue to the Climate Action Millage Fund expenditure budget, with the source of revenue being the grant award from the American Lung Association; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.
Sponsored by: Mayor Taylor