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SR-510-012 (10) EPWM:CP:RC:RS City Council Meeting: January 11, 2005 Santa Monica, California TO: Mayor and Councilmembers FROM: City Staff SUBJECT: Support for and Participation in the Mobile Source Air Pollution Reduction Review Committee (MSRC) Local Government Match Program. Introduction This report recommends that the City Council support participation in the Mobile Source Air Pollution Reduction Review Committee (MSRC) Alternative Fuels Local Government Match Program of the South Coast Air Quality Management District (SCAQMD) to obtain funds to offset fleet costs. Background In 1991, the City of Santa Monica adopted an ordinance to implement California Assembly Bill 2766, which authorized an additional motor vehicle registration fee to fund programs that reduce air pollution from mobile sources. Discussion The MSRC program encourages the purchase of medium and heavy-duty alternative fueled vehicles. The program provides a ?dollar for dollar? match of public funds to a maximum of $10,000 per qualifying medium-duty vehicle and an amount not to exceed $20,000 per qualifying heavy-duty vehicle. 1 Staff has applied for matching funds of $70,000 for seven CNG medium-duty vehicles and $280,000 for fourteen heavy-duty vehicles. The new vehicles will replace vehicles scheduled for replacement and are not enhancements to the fleet. Budget/Financial Impact If awarded, matching funds of $350,000 will be available for the purchase of alternative fueled vehicles, reducing contributions to the Vehicle Maintenance Fund by the departments to which the vehicles are assigned. Funds received will be budgeted in the appropriate revenue and expenditure accounts. Recommendation Staff recommends that the City Council support participation in the Mobile Source Air Pollution Reduction Review Committee Alternative Fuels Local Government Match Program of the South Coast Air Quality Management District to obtain funds to offset City costs. Prepared by: Craig Perkins, Director, Environmental and Public Works Management Renee Cowhig, Maintenance Manager Rick Sikes, Fleet Superintendent 2