Approving an Interlock Agreement the City South Bend Public Transportation Corp and Appropriating $972,500.00 Compressed National Gas Fueling Facility Project

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BILL NO. t ORDINANCE NO. ( O 2 U Z— t AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF SOUTH BEND AND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION AND FURTHER APPROPRIATING $972,500.00 FROM COIT FUND ( #404) TO PARTICIPATE IN A COMPRESSED NATURAL GAS FUELING FACILITY PROJECT AND ITS OPERATION PURSUANT TO THE INTERLOCAL AGREEMENT STATEMENT OF PURPOSE AND INTENT The South Bend Public Transportation Company ( "TRANSPO ") is a political subdivision of the State of Indiana, and the recipient of a grant from the United States Department of Energy to design, develop, and construct a Compressed Natural Gas (CNG) fueling station and facility on the site of TRANSPO's headquarters at 1401 South Lafayette Boulevard, near downtown South Bend, Indiana. The City of South Bend (the City) desires to, and would greatly benefit from partnering with TRANSPO in the furtherance of this CNG fueling station and facility project. Such a project is within the scope of Indiana Code Section 36 -1 -7 -1 et. Seq. which provides for Interlocal Cooperation between one or more governmental entities, and the Project as described constitutes an economic development project under I.C. 36- 1 -7 -11.5 because it involves "transportation services [and] transportation infrastructure ". As early as 2010, the City began pursuing use of CNG for use in transportation fuel, and in 2013 the City acquired four solid waste trucks which use CNG exclusively. The cost of fuel for these trucks has been closely monitored and it is substantially lower than the cost of gasoline (presently a cost of $33 per diesel gallon equivalent). Moreover, CNG is environmentally cleaner with reduced emissions in all categories, and it is a domestic fuel, which reduces security risks to the country Partnership with TRANSPO on the fuel station and facility is expected to further reduce the City's transportation fuel costs, as the City expands its use of CNG fueled vehicles. The proposed Interlocal Agreement which is attached hereto and incorporated herein as Exhibit A constitutes an equal (50150) partnershiD between the City and TRANSPO for costs and benefits. It is estimated the City will recoup its entire investment within 60 months of operation. Approval of this Interlocal Agreement is in the best economic and environmental interests of the City and its citizens, and appropriation of the sum of Nine Hundred Seventy -Two Thousand Five Hundred dollars ($972,500) which is the City's contribution