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HomeMy WebLinkAboutItem 2i - Purchase of Compressed Natrual Gax ("CNG") Fuel for City's Fleet
Purchase Order for CNG Fuel
June 6, 2017
Page 1 of 2
DATE: June 6, 2017
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Jacquelyn Mercado, Management Analyst
SUBJECT: PURCHASE ORDER WITH CLEAN ENERGY FOR THE PURCHASE OF
COMPRESSED NATURAL GAS (“CNG”) FUEL FOR THE CITY’S FLEET
IN AN AMOUNT NOT TO EXCEED $45,000
Recommendation: Approve
SUMMARY
The City primarily utilizes the Clean Energy compressed natural gas (“CNG”) fueling
station located at the Foothill Transit Center to fuel CNG vehicles. The purchase order
contract with Clean Energy expires on June 30, 2017. It is recommended that the City
Council approve a sole source purchase order with Clean Energy for the purchase of
CNG fuel for the City’s fleet in an amount not to exceed $45,000.
BACKGROUND
The Public Works Services Department (“PWSD”) has been strategically replacing
vehicles that meet the City’s Vehicle Replacement Policy criteria with alternative fuel
vehicles such as CNG, Hybrid, and Plug-in Electric. This has allowed the City to be
compliant with the Air Quality Management District’s mandates that require heavy duty
equipment to be replaced with alternative fuel vehicles, reduces the City’s overall fuel
costs, and reduces the City’s greenhouse gas emissions footprint. The PWSD is
responsible for the purchase of CNG fuel and currently operates a fleet of eight CNG
vehicles. Three additional CNG vehicles purchased in Fiscal Year 2016-17 are
presently being outfitted and will be placed into operation by September 2017.
DISCUSSION
The PWSD utilizes two local CNG public fueling stations to fuel all City CNG vehicles.
The first station, owned and operated by Foothill Transit, is located less than a half a
mile from the Public Works Service Center. The second station, owned and operated by
the City of Pasadena, is located on Foothill Boulevard just west of the City limits. Clean
Energy is the sole source CNG fuel and service provider for both these fueling stations.
Purchase Order for CNG Fuel
June 6, 2017
Page 2 of 2
The PWSD has vehicle fueling cards provided from Clean Energy and is invoiced
monthly for fuel purchased at these two stations. Last year, the PWSD used a total of
approximately 14,000 Gasoline Gallon Equivalents (“GGE”). This usage is anticipated to
increase considerably as the PWSD will be placing three new CNG vehicles into
operation by September 2017 and most recently placed into operation a heavy duty
CNG Vactor sewer truck that is expected to utilize approximately 300 GGE per month.
Based on the existing purchase order the City paid on average last year $2.25 per
GGE. The price per GGE is subject to change based on market rates. Currently, the
market rate in California is $2.40 per GGE.
FISCAL IMPACT
Sufficient funds are appropriated in the Department’s Fiscal Year 2017-18 Operating
Budget for the purchase of CNG fuel.
RECOMMENDATION
It is recommended that the City Council approve a sole source purchase order with
Clean Energy for the purchase of CNG fuel for the City’s fleet in an annual amount not
to exceed $45,000.