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CONSIDERATION OF THE ACCEPTANCE OF A PUBLIC FLEET CONVERSION GRANT IN THE AMOUNT OF $114,104 FROM THE ASSOCIATION OF CENTRAL OKLAHOMA GOVERNMENTS (ACOG) TO THE FLEET DIVISION TO BE USED TO PROVIDE TWO (2) NEW HEAVY DUTY COMPRESSED NATURAL GAS (CNG) RESIDENTIAL REAR LOADING REFUSE TRUCKS TO BE USED BY THE SANITATION DIVISION; APPROVAL OF CONTRACT K-1718-98, AND RATIFICATION OF RESOLUTION R-1718-83 SUBMITTED WITH THE GRANT APPLICATION PACKET.
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BACKGROUND: On February 24, 2009, the City Council adopted the Norman Alternative Fuel Program (AFP), one of very few such municipal programs in Oklahoma. Since that time, the City has become a leader in alternative fuel technology in Oklahoma and the Midwest region. Norman’s AFP places an emphasis on compressed natural gas technology. In addition to the environmental benefits, the City has saved approximately $1.6 million since 2009 in fuel costs.
On October 2, 2017, the Association of Central Oklahoma Governments (ACOG) announced round one for the eighth year of an ACOG-administered Public Fleet Conversion Grant Program using Federal Fiscal Year (FFY) 2018 Congestion Mitigation and Air Quality (CMAQ) funds up to $350,000. CMAQ funds support transportation projects that reduce mobile source emissions. This grant program will allow public sector fleets to access CMAQ funds for fleet conversions to clean fuel technologies which include alternative fuel vehicles such as compressed natural gas (CNG), hybrid vehicles and alternative fuel vehicle refueling infrastructure. The grants will be provided as a reimbursement of City funds when the vehicles are placed into service.
On November 14, 2017, a grant application was submitted to the Association of Central Oklahoma Governments (ACOG) requesting funds in the amount of $114,104 to be utilized for the purchase of two (2) new heavy duty CNG Residential Rear Loading refuse trucks for the City of Norman Utilities Sanitation Division.
The City of Norman was previously awarded eight (8) ACOG CMAQ grants in the total amount of $1,187,600 between 2009 and 2017. In addition, the City received a grant in 2011 using federal funding from the American Recovery and Reimbursement Act (ARRA) administered by the Oklahoma Department of Commerce (ODOC) in the amount of $1,429,365 for the construction of the City CNG Fueling Station. The City’s CNG fleet now totals 123 vehicles/equipment including refuse trucks, street sweepers, pickup trucks, sedans, generators and mowers along with a CNG Slow Fill Facility (for city use) and a CNG Fast Fill Facility (for public/city use).
A list of Alternative Fuel Program Grants that have been received has been included as an attachment.
DISCUSSION: On December 29, 2018, the Central Oklahoma Clean Cities Coordinator notified the City of Norman its application for funding had been approved by the ACOG Metropolitan Planning Organization for two (2) heavy duty CNG trucks for the Utilities Sanitation Division. The City of Norman ranked #1 out of the four projects awarded grant funds and received 39% of the $294,510 awarded. The other applicants in the order awarded grant funds are OU-CART, the City of Midwest City, and the University of Oklahoma Fleet Services.
Grant funding is provided by ACOG following the submission of a paid invoice. The grant provides funding for the conversion of the vehicles from conventional fuel to compressed natural gas. If approved, the City’s FYE 2018 Sanitation Utility Fund will realize a direct savings of $114,104. The two new trucks will be purchased in February 2018 and put into service in July 2018. Funds in the amount of $632,000 were budgeted for Fiscal Year 2018 in Sanitation Trucks (account number 033-5568-432.50-04) to purchase the trucks.
RECOMMENDATION: It is recommended that City Council accept the grant and the Mayor be authorized to sign the attached two copies of Contract K-1718-98 accepting CMAQ grant funding from ACOG in the amount of $114,104. A table showing the estimated cost and savings to the City has been included as an attachment.
Grant fund reimbursements in the amount of $114,104 will be deposited into the Sanitation Fund, Miscellaneous Grant Reimbursements (033-0000-331.13-46).