Title
Transportation Department recommending Resolution authorizing the Chairman to sign the Grant Award & Authorization Form 07-1478 with California Air Resources Board in the amount of $823,766 for Fiscal Year 2006/2007, and Letter of Acceptance for same; and Director of said Department be authorized to execute all necessary documents, including but not limited to, payment requests hereto, for the purposes of implementing and carrying out projects specified in said agreement.
RECOMMENDED ACTION: Adopt Resolution 144-2007.
FUNDING: Air Resources Control District, Proposition 1B, Discretionary Road Fund Sources, California Air Resources Board.
Body
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BUDGET SUMMARY: |
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Total Estimated Cost |
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$1,613,868 |
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Funding |
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Budgeted |
$ 972,323 |
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New Funding |
$ 641,545 |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$ 1,613,868 |
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Change To Net County Cost $ 0
Fiscal Impact/Change to Net County Cost:
There is no change to the General Fund Net County Cost. By signing this Agreement, the County will receive a total of $823,766 from the California Air Resources Board (ARB)
The FY 07-08 DOT Proposed Budget includes $972,323 for the retrofit, repower, and or/replacement of off-road heavy-duty construction equipment and is requesting that this amount be increased by $641,545 in order to take advantage of these grant revenues:
Description Proposed Budget Revised Budget Increase
Total Cost 972,323 1,613,868 641,545
ARB Grants * 485,323 823,766 338,443
ARCD Grants ** 244,125 244,125 0
Total Grants 729,448 1,067,891 338,443
Net to
Road Fund 242,875 545,977 303,102
* California Air Resources Board
** Air Resources Control District (DMV fees)
If the Board approves acceptance of the ARB grant funds, it is requested that the Board direct the CAO to add $641,545 to the DOT FY 07-08 Proposed Budget consistent with the schedule shown above. The increase to the Road Fund of $303,102 is proposed to be funded with Proposition 1B funding. Proposition 1B funds were not included in the proposed budget pending approval of the State budget. Preliminarily the allocation to El Dorado County is estimated to be $2.8 million. While the entire $2.8M amount is not a certainty it is reasonable to assume the County will receive at least the $303,102 required here for the match.
The ARB grant funding is the subject of this agenda item and other sources are being provided to present a complete picture of the funding available to support the retrofit program in FY 07-08. As a point of clarification, this grant is being provided from the ARB fiscal year 06-07. The grant proceeds must be expended no later than June 30, 2008 and will therefore be expended during the County's 07-08 fiscal year.
Background:
The Transportation Department submitted a grant application to the California Air Resources Board (ARB) on February 28, 2007 for $792,322 of funding for the purchase of low-emission construction equipment as detailed on Exhibit A. A total of $25 million was offered to California public agencies from this one-time ARB grant program. Sixty California public agencies were granted awards ranging from $21,911 to $1,301,333. The average grant award was $416,667. El Dorado County DOT ranked tenth based on the amount awarded and ranked second based on the number of individual equipment applications awarded. EDCDOT was awarded 23 projects compared to Caltrans which was awarded 49 retrofit only projects. (See Exhibit B).
The Grant Agreement has specified that for engine or equipment replacements, “the engine or equipment to be replaced must be scrapped within 90 days after being replaced." For the purposes of this Agreement, ‘scrapped’ means destroying or rendering the ‘equipment’ useless either by punching a hole in the engine block, and/or cutting the structural components of the equipment, or some other manner acceptable to ARB. The engine and/or equipment to be replaced shall either be scrapped by Grantee, or Grantee may transfer the engine and/or equipment to another agency which must in turn scrap an equivalent piece of engine and/or equipment approved by ARB. Documentation of the destruction of the engine and/or equipment that was replaced (i.e. photos, receipts, etc.) must be provided to the ARB or its designee within 10 days of the engines’ and/or equipment’s destruction.” This equipment disposal requirement that the replaced equipment will never be operated again in the State of California is mandated by the ARB as a non-negotiable condition of this Grant Agreement. To fulfill this condition of the Grant Agreement, the County will not be able to follow its standard surplus equipment disposable process.
Reason for Recommendation:
The Department is required to replace or retrofit on-road and off-road equipment in order to comply with Air Resources Board emissions standards. The Department has been successful in obtaining grant funding for a good portion of the total cost associated with this program. This ARB grant will save the County approximately $824,000 in capital outlay for construction equipment that must be retrofitted, repowered and/or replaced.
Action to be taken following Board approval:
1. The Board Chairman will sign the Resolution.
2. The Board Chairman will execute the Grant Agreement by signing and dating the two originals of the Grant Award & Authorization Form, and will also sign the cover letter addressed to Stacey Dorais.
3. The Board Clerk will forward the signed resolution, cover letter and both signed originals of the Grant Award & Authorization Form, along with the fully executed Grant Agreement to the Transportation Department for further processing.
4. The Transportation Department will move forward with the equipment procurement.
5. After the specified projects are completed, the Transportation Department will prepare the Grant Disbursement Request Form and submit it, along with the required documentation to the California Air Resources Board.
6. The CAO will adjust the FY 07-08 DOT Proposed Budget to add $641,545 in appropriations as described above.
Contact: Richard W. Shepard, Director of Transportation, ext. 5981
Concurrence: County Counsel and Risk Management