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CONTRACT K-1314-135: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND THE ASSOCIATION OF CENTRAL OKLAHOMA GOVERNMENTS ACCEPTING A PUBLIC FLEET CONVERSION GRANT IN THE AMOUNT OF $50,875 TO BE USED TO PURCHASE A COMPRESSED NATURAL GAS (CNG) BUCKET TRUCK FOR THE PARK MAINTENANCE DIVISION AND ONE CNG LIGHT DUTY TRUCK FOR THE SEWER LINE MAINTENANCE DIVISION AND DEPOSIT OF FUNDS INTO THE CAPITAL FUND GRANT REIMBURSEMENT ACCOUNT AND THE WATER FUND REIMBURSEMENT ACCOUNT.
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BACKGROUND: On September 27, 2013, the Association of Central Oklahoma Governments (ACOG) announced the fifth year of an ACOG-administered public fleet conversion grant program using Federal Fiscal Year (FFY) 2014 Congestion Mitigation and Air Quality (CMAQ) funds. CMAQ money supports transportation projects that reduce mobile source emissions. This grant program allows public sector fleets to access CMAQ funds for fleet conversions to clean fuel technologies to include alternative fuel vehicles such as compressed natural gas (CNG).
On January 14, 2014, City Council approved the Grant Application and Resolution No. R-1314-79, which were forwarded to ACOG requesting assistance with the purchase of one (1) CNG bucket truck and three (3) CNG light duty trucks that are scheduled for replacement in the City's FYE 2015 Capital Vehicle Replacement Budget. The bucket truck and one of the light duty trucks were approved by ACOG for grant funding. The CNG Bucket Truck is proposed to replace a 2000 IHC 4700 diesel-powered bucket truck operated by the Park Maintenance Division. The CNG Light Duty Truck is proposed to replace a 2005 Chevy 1500 operated by the Utilities Department, Sewer Line Maintenance Division.
DISCUSSION: In March 2014, ACOG notified the City of Norman that its application for funding had been approved in the amount of $50,875 for the CNG bucket truck and one CNG light duty truck. Grant funding is provided by ACOG following the submission of a paid invoice.
The ACOG grant funds will be used to replace unit #479, a 2000 diesel bucket truck and unit #354, a 2005 Chevy 1500 pickup. The conversion to the CNG bucket truck is expected to save the City 75 percent annually in fuel costs and the emissions are expected to be lowered by 40 percent.
Full funding for the bucket truck and light duty truck is anticipated to be included in the FYE 2015 Capital Vehicle Replacement Budget, so the grant will provide a direct savings of $50,875 in the proposed budget year.
RECOMMENDATION: It is recommended that City Council approve and the Mayor be authorized to sign Contract No. K-1314-135 and accept CMAQ grant funding from ACOG in the amount of $50,875. Grant funds in the amount of $40,375 will be deposited into the Capital Fund, Federal Grant Reimbursements (050-0000-331.12-52) and $10,500 will be deposited into the Water Reclamation Fund, Other Agency Reimbursements (032-0000-366.12-39).