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EPWM CP CP ab2766
Council Meeting November 24, 1998
Santa Monica, California
TO Mayor and CIty Council
FROM City Staff
SUBJECT: Recommendation to AuthOrize CIty Manager to Negotiate and Execute
Agreement With the Southern California Air Quality Management Dlstnct
to Accept Grant Funds In the Amount of $739,978 for the Purchase of
Compressed Natural Gas Heavy Duty Vehicles
INTRODUCTION
This report recommends that the CIty Council authOrize the City Manager to negotiate and
execute an agreement With the Southern California Air Quality Management Dlstnct
(SCAQMD) to accept $739,978 In grant funds to support the CIty's diesel to compressed
natural gas (CNG) heavy-duty vehicle replacement program
DISCUSSION
On February 13, 1998 a proposal was submitted by the City for $739,978 In AB2766
discretionary co-funding from the SCAQMD to assist In the purchase of 22 CNG heavy-
duty vehicles In the Refuse and Beach funds The funds requested cover the differential
cost between diesel vs CNG vehicles City staff has now been Informed that Santa
MOnica's entire request for co-funding has been approved as a part of the SCAQMD's
1998-99 Heavy-Duty Vehicle Program
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As a part of the Santa Monica Sustainable City program adopted In September, 1994 an
aggressive plan for the procurement of alternatively fueled vehicles was Implemented The
City's goal 15 to achieve a 75% conversion to alternative fuels In the CIty's fleet by the year
2000 AchIevement of thiS goal Will contribute to air quality Improvements In the region by
directly redUCing mobile source emiSSions The funding from the SCAQMD AB2766
program Will be used to offset the dlfferentlal cost for 21 new dedicated CNG heavy duty
vehicles (13 refuse trucks, 5 transfer tractors and three street sweepers) and 1 dual-fuel
(CNG/dlesel) dump truck which eIther have been delivered since February 1998 or Will be
delivered over the next two years The balance of funding needed for the Initial purchase
costs for these vehicles IS already budgeted or Will be budgeted as a part of the Refuse
and Beach funds' contnbutlons to the Vehicle Replacement Fund
BUDGET/FISCAL IMPACT
There are no expendIture Impacts associated with the approval of the recommendations
In thiS staff report as all funding necessary to purchase the vehicles covered by the grant
dUring the current flscaf year has already been budgeted as a part of the City's Vehicle
Replacement Program or Will be requested for City Council approval In future budget
years
It IS estimated that $585,000 of the grant funds Will be received dUring the 1998-99 fiscal
year and Will be depOSited In revenue account number 20-500-461-00000-0624-10000
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The remaining $154,978 IS anticipated to be received In fiscal year 1999-2000 and 2000-
2001
RECOMMENDATIONS
It IS recommended that City Council authorize the City Manager to negotIate and execute
an agreement with the SCAQMD to accept $739,978 In AB2766 funds for the purchase of
CNG heavy-duty vehicles and approve the budget changes detailed In thiS report
Prepared by Craig Perkins, Environmental and Public Works Director
Renee Cowhlg. Maintenance Manager
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