HomeMy WebLinkAbout10/29/1991, C-13 - LETTER OF INTEREST TO SOUTHERN CALIFORNIA GAS COMPANY EXPRESSING THE CITY'S INTEREST IN COMPRESSED NATURAL GAS (CNG) FUELED CITY VEHICLES. a�� �� CTCy Of San LUIS OBISPO MEETING 91
10/29/91
COUNCIL AGErTEM
NDA REPORT
FROM: Ken Hampian, Assistant City Administra ive Officer,0--yKl
Prepared by: Harry Watson, Transit Manager.
SUBJECT: Letter of Interest to Southern California Gas Company
expressing the City's interest in Compressed Natural Gas (CNG)
fueled City vehicles.
CAO RECOMMENDATION: Authorize the Mayor to sign a letter of
interest to Southern California Gas Company expressing the City's
desire to acquire replacement CNG fueled vehicles for the City
fleet.
DISCUSSION:
Backo-round
During the summer of 1990 several members of the Public Works
Department and the Transit Manager attended a meeting hosted by the
Southern California Gas Company. The meeting was also attended by
several large company employers of the area, representatives from
San Luis Obispo County, and representatives from the San Luis
Coastal Unified School District. The purpose of the meeting was
to explore the fleet usage potential of CNG powered vehicles.
As a follow-up to the first meeting, Mr. Vic Sterling of Southern
California Gas Company met with Councilman Roalman and the Transit
Manager on Tuesday, October 1, 1991 and presented an update of the
CNG program in San Luis Obispo. The gas company is currently
awaiting Public Utilities Commission (PUC) approval of a minor rate
increase request. The increased revenues would go toward the
construction of CNG fueling facilities within the gas company's
service area. Approval of the request is expected in December
1991.
In order to site a CNG fueling facility in San Luis Obispo, the
gas company has asked local government and private industries for
letters of interest. The letters would be seen as a customer base
with which to justify the installation costs of a CNG facility.
The gas company is considering the San Luis Obispo area as a
potential site, not only for fleet customers, but for future CNG
powered private vehicles. Geographically San Luis Obispo is well
situated mid-way between Los Angeles and San Francisco, which adds
additional impetus to siting a CNG facility in the City.
Staff has prepared a letter to be signed by the Mayor expressing
the City's interest in using CNG as a clean air alternative in the
City's fleet when technology has produced efficient equipment and
the economics of CNG use are competitive with gasoline and diesel
powered vehicles.
ATTACHMENT:
Letter of Interest
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CNG.rpt ��—/
DRAFT
October 8, 1991
Vic Sterling, District Manager
Southern California Gas Company .
1012 Pacific Street, Suite B
San Luis Obispo, CA 93401
Dear Mr. Sterling:
This letter is intended to be a letter of interest on behalf of the City of San Luis Obispo
to introduce Compressed Natural Gas (CNG) vehicles into the City fleet. The City is
very committed to reducing air pollution within our community and doing whatever it can
towards that goal.
When dedicated CNG engine technology becomes available, and the economics of a
,CNG vehicle are affordable, the City intends to introduce CNG powered vehicles into
our fleet. Through the normal vehicle-replacement program that the City has in place,
we will .be looking to CNG vehicles as a viable option when replacing transit buses,
heavy equipment, and light duty trucks within our fleet.
Obviously a convenient fueling station is a prerequisite for any CNG vehicle purchase.
Southern California Gas has indicated that they are interested in locating a CNG fueling
station in the San Luis Obispo area. The City supports such a facility being made
available not only to the City but to the general public and other local fleet operators.
Please keep the City apprised of any developments in siting a CNG fueling facility in the
City of San Luis Obispo.
Sincerely,
Ron Dunin
MAYOR
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CNG