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CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR <br />DEPARTMENT OF PUBLIC WORKS <br />January 22, 2014 <br />Mr. Oliver Davis <br />President, South Bend Common Council <br />4 t Floor, County -City Building <br />South Bend, IN 46601 <br />Re: A Bill to Approve TRANSPO Interlocal Agreement and To Appropriate Funds for <br />Compressed Natural Gas Fueling Station <br />Dear President Davis: <br />Attached is an ordinance which approves an Interlocal Agreement with TRANSPO for <br />the construction and operation of a Compressed Natural Gas (CNG) Fueling Station and which <br />appropriates $972,500 for the City's share of this interlocal government project. <br />South Bend has been using CNG exclusively in four solid waste trucks purchased by the <br />City in 2013, and the fuel costs of these trucks have been closely monitored. Substantial savings <br />has been achieved; presently the cost of CNG is about $.73 per diesel gallon equivalent. <br />Moreover, CNG is environmentally cleaner with reduced emissions in all categories. <br />The South Bend Public Transportation Company ( TRANSPO) has received a federal <br />grant from the U.S. Department of Energy to design, develop and construct a CNG fueling <br />station and facility. It is desirable that the City of South Bend enter an interlocal partnering <br />agreement to construct and share the costs and benefits of such facility. The City's share is <br />$972,500, to be appropriated from COIT funds, and it is estimated that the City will recoup its <br />entire investment within 60 months of the CNG facility's operation. <br />At this time the ordinance is being submitted without the Interlocal Agreement which is <br />in the process of final draft. I will provide the Council with the proposed Interlocal Agreement <br />well in advance of the second and third reading of this Bill. <br />