55A - RESO - GRANT APP AND AA AWARD FROM AQMD-MSRC

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AQMD-MSRC Alternative Energy Grants May 21, 2012 Page 2 DISCUSSION In September 2011, the City adopted a 5-Year Alternative Energy Strategic Plan which the Corporate Yard Facilities/Fleet Service Manager presented to the City Council at the meeting of March 19, 2012. The Plan outlines the strategy to move the City's Fleet operations from conventional fuel (diesel and unleaded gasoline) to alternative energy such as Compressed Natural Gas (CNG), electricity, hydrogen, and propane. Currently, only 5% of the City's Fleet is powered by alternative energy. The goal of the Plan is to increase this 5% rate to 75% in five years by gradually retrofitting or replacing fleet equipment. The fueling infrastructure to support this new breed of fleet equipment is also addressed in the Plan which proposes to develop alternative energy fueling stations to be used not only by City fleet operators but also by Santa Ana residents and the community at large. These publicly accessible facilities will be equipped with credit card readers to capture City revenue from the public sale of alternative fuel. Staff requests Council to adopt a resolution (Attachment 1) authorizing the Facilities-Fleet Services-Central Stores Manager to submit the 2012 grant application (Attachment 2) for the AQMD-MSRC Clean Transportation Local Government Match Program in the amount of $320,000 to help fund the FY 2012-2013 Alternative Energy Action Plan. Total cost for 2013 Plan implementation is $775,000. City will initially pay all costs using FY 2012-2013 money in Account Nos. 03110101 Air Quality Improvement-Fleet and 07510101 Equipment Replacement Fund. The 2012 grant award of $320,000 would reimburse Account No. 03110101. Net cost to the City in 2013 would be $455,000. Staff also requests Council to accept the 2011 grant award (Attachment 3) of $527,500 from the AQMD-MSRC Clean Transportation Local Government Match Program to help fund the current year Alternative Energy Action Plan. Total cost for 2012 Plan implementation is $1,055,000. City will initially pay all costs using current year funds in Account Nos. 03110101 Air Quality Improvement-Fleet and 07510101 Equipment Replacement Fund. The 2011 grant award of $527,500 would reimburse Account No. 03110101. Net cost to the City in 2012 would be $527,500. FISCAL IMPACT 1. There is no current year fiscal impact associated with the 2012 grant application. 2. FY 11-12 Alternative Energy Action Plan implementation has a total cost of $1,055,000. The AQMD-MSRC 2011 grant award of $527,500 will be recognized in Revenue Account 03116002-52040 Air Quality Improvement Fund and appropriated in Expenditure Account 03101101-66220 Fleet Services-Air Quality Improvement. City match funds required by the grant are available in Expenditure Account 07510101-66400 Equipment Replacement Fund. 55A-2