SR-510-012 (4)
EPWM: CP: KJ: H:\epwm\admin\staffreport\msrcmatch
City Council Meeting: March 26, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Application for the Alternative Fuels Local Government Match Program for
the Purchase of Fifteen Medium-duty Alternative Fueled Vehicles.
Introduction
This report recommends that the City Council authorize the City Manager to apply for
the Alternative Fuels Local Government Match Program of the South Coast Air Quality
Management District.
Background
In 1991, the City of Santa Monica exercised California Assembly Bill 2766, which
authorizes an additional motor vehicle registration fee to fund the implementation of
programs to reduce air pollution from mobile sources.
Discussion
Sponsored by the Mobile Source Air Pollution Reduction Review Committee (MSRC),
the Local Government Match Program is designed to encourage the purchase of
medium and heavy-duty alternative fueled vehicles. The program provides for a 100%
match against local public funds ?dollar for dollar? in an amount not to exceed $10,000
per qualifying medium-duty vehicle. Staff proposes purchase of 15 CNG medium-duty
vehicles. Ten of the vehicles will be use to replace existing non-alternative fuel
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vehicles in the City?s fleet, and an additional five vehicles will be needed for Solid Waste
Street Sweeping Inspectors and Community and Cultural Services Supervisors.
The Alternative Fuels Local Government Match Program will be awarded on a first-
come, first-serve basis to applicants that satisfy specified project requirements.
If the match program is awarded, the City would be reimbursed $10,000 for the
purchase of each alternative fueled medium-duty vehicle. The average cost of each
vehicle is $28,500; the $10,000 match represents 35% of the purchase price.
Budget/Financial Impact
If awarded the matching funds through the Alternative Fuels Local Government Match
Program, staff anticipates reimbursement of $150,000 for the purchase of various
alternative fueled vehicles already budgeted. The grant will therefore reduce the
General Fund (Account # C01016702.589000) contribution to the Vehicle Maintenance
Fund by $100,000 and reduce the Solid Waste Management Fund (Account
#C27016702.589000) contribution to the Vehicle Maintenance Fund by $50,000.
Contingent upon grant award, revenues of $150,000 will be recorded in the Vehicle
Maintenance Fund revenue account #54461.405760.
Recommendation
Staff recommends that the City Council authorize the City Manager to apply for the
Alternative Fuels Local Government Match Program to the South Coast Air Quality
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Management District for the $10,000 per vehicle reimbursement, execute any
necessary documents related to the grant and authorize staff to implement the
appropriate budget actions upon grant award.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Renee Cowhig, Maintenance Manager
Kevin Jorgensborg, Maintenance Management Superintendent
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