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SR-510-012 (11) 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) Upgrade and Expansion of Existing CNG and LNG Refueling Stations Funding Program. Introduction This report recommends that the City Council support and participate in the Mobile Source Air Pollution Reduction Review Committee (MSRC) Upgrade and Expansion of Existing CNG and LNG Refueling Stations Funding Program. Background The MSRC has allocated a total of $1.25M in AB 2766 Discretionary Funds to partially offset the capital costs of upgrading and/or expanding existing CNG or LNG refueling infrastructure. A maximum of $150,000 per station is available from the MSRC. The existing CNG refueling facility was built in 1997. Current technology and design offer improved CNG fueling and lower maintenance costs. The upgrade and additional storage will allow faster filling of vehicles and provide the fleet with an uninterrupted supply of CNG. This is increasingly important as we expand our CNG fleet (currently over 245 CNG vehicles) and continue to pursue alternative fuel strategies. 1 Discussion The CNG compressors at the City Yards have required substantial maintenance and repairs. In August 2002, the City Council appropriated funds and authorized the purchase of equipment to upgrade the facility. In October 2003, a contract was awarded to Weaver Electric with a completion date of March 2005. MSRC funds, if awarded, would offset $150,000 of the $695,498 total project cost. Budget/Financial Impact If awarded, MSRC funds will be budgeted in the appropriate revenue and expenditure accounts. Recommendation Staff recommends that the City Council support participation in the MSRC?s Upgrade and Expansion of Existing CNG and LNG Refueling Stations Funding Program 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