TITLE
Recommendation to authorize City Manager, or designee, to execute a contract and all necessary amendments, with the Mobile Source Air Pollution Reduction Review Committee (MSCR), to receive and expend Local Government Partnership Program funds, for an amount not to exceed $622,220, for a period not to exceed 5 years, at the discretion of the City Manager;
Receive and file a presentation on the City’s green fleet and MSCR grant;
Authorize a required cash match of $622,220 over the course of the grant period; and
Increase appropriations in the Fleet Services Fund (IS 386) in the Financial Management Department (FM) by $622,220. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with MSRC, in association with the South Coast Air Quality Management District (SCAQMD), for the receipt of grant funding in the amount of $622,220, to partially offset the cost to construct electric vehicle charging stations over a five-year period, and to procure electric and hybrid-electric vehicles for City fleet usage.
The MSRC grant funding is part of the Local Government Partnership Program for 2018 that calculates individual grant allocations based on a municipality’s AB 2766 (Motor Vehicle Subvention Program) project allocations to promote cleaner air within the SCAQMD through low emission vehicles and use of alternative fuels. The AB 2766 funding is derived from the California Department of Motor Vehicle annual vehicle registration fee surcharges to fund the implementation of programs to reduce air pollution from motor vehicles. According to the SCAQMD, air pollutant emissions must be reduced by an additional 75 percent to meet the 2023 federal ozone standard.
The 2018 Local Government Partnership Program focuses on reducing emissions through construction of electric vehicle charging stations and acquisition of light-, medium- and heavy-duty vehicles with zero or near zero emissions. The local match requirement will be funded from projected AB 32 (California Global Warming Solutions Act) FY 18 Cap and Trade funding.
Construction of electric vehicle charging stations is being coordinated through the Battery Electric Vehicle Task Force using a five-year project timeline. Some charging stations will utilize solar panels to generate electricity, creating additional cost reductions for use of electric and hybrid electric vehicles.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on January 19, 2018 and by Assistant Finance Director Lea Eriksen on January 4, 2018.
SUSTAINABILITY
Use of zero emission vehicles contributes to the goals stated in the air quality improvement strategy submitted by the SCAQMD. Electric vehicle charging stations will reduce fuel costs to the City and support the transition to a fully alternative-fuel fleet.
TIMING CONSIDERATIONS
City Council action is requested on February 6, 2018, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The MSRC Local Government Partnership Program funding is currently unbudgeted, and an appropriation increase in the Fleet Services Fund (IS 386) in the Financial Management Department (FM) in the amount of $622,220 is requested. The City matching requirement of $622,220 will be funded from projected AB 32 FY18 Cap and Trade funding for reduction of greenhouse gas emissions and, if necessary, existing vehicle replacement charges already budgeted and collected during the Fleet Services Bureau monthly billing process. Costs for construction of the electric vehicle charging stations will be determined through a competitive bid process. Future maintenance costs for zero emission vehicles and charging stations acquired with these grant funds will be determined once the size and placement of charging stations have been vetted and approved and will be recovered through annual Fleet MOU charges to user departments. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER