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sr-081109-1hCity Council Meeting: August 11, 2009 Agendaltem: ~_}{ To: Mayor and City Council From: Joan Akins, Director, Community Maintenance Department Subject: Acceptance of Mobile Source Air Pollution Reduction Review Committee (MSRC) Alternative Fuels Local Government Match Program Grant Funds. Recommended Action Staff recommends the City Council authorize the City Manager to enter into a contract with 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 vehicle replacement costs. Executive Summary The City of Santa Monica was awarded a $600,000 grant (MSRC Contract ML 08028) for partial funding of 24 heavy-duty natural gas vehicles to offset incremental costs. As the vehicles are purchased and placed in service, staff will invoice MSRC for the $25,000 grant per vehicle. Discussion 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 including Mobile Source Air Pollution Reduction Review Committee. Sponsored by the MSRC, the Local Government Match Program is designed to encourage the purchase of medium and heavy-duty alternative fueled vehicles. The program provides a "dollar for dollar" match of public funds not fo exceed $25,000 per qualifying heavy-duty vehicle. 1 .Staff applied for and was awarded matching funds of $600,000 for 24 CNG heavy-duty vehicles. The new vehicles will replace vehicles scheduled for replacement and are not enhancements to the fleet. Financial .impacts ~ Budget Actions This award of matching funds of $600,000 will reduce future contributions to the Vehicle Replacement Fund by the departments to which the vehicles are assigned. Funds received will be budgeted in revenue account #44401:4040830 and expenditure account 0440401.589000. Prepared by: Rick Sikes, Superintendent, Fleet Management Approved; Forwarded to Council: k Joan Akins °~ P/. I~nont tm Director, Community Maintenance C1{y Manager 2 Reference Contract No. 9100 (CCS).