HomeMy WebLinkAboutItem 12c - Purchase of Compressed Natrual Gas Fuel for City's FleetPurchase Order for CNG Fuel
July 3, 2018
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DATE: July 3, 2018
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 $70,000
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, 2018. 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 $70,000.
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, Hybrids, and Plug-in Electric vehicles. 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 10 heavy duty
CNG vehicles, which include street sweepers, aerial lift trucks, a dump truck, a sewer
jetter vacuum truck, and several one-ton service pickup trucks.
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 one-half
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
July 3, 2018
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There are no other viable CNG fueling stations in the immediate area. Therefore,
utilizing a sole source purchase order is necessary.
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 19,000 Gasoline Gallon Equivalents (“GGE”). This usage is anticipated to
increase as the PWSD will be placing two additional heavy duty CNG vehicles into
operation this fall. The new CNG Vactor hydro excavator truck and water tanker are
expected to each utilize approximately 300 GGE per month. Based on the existing
purchase order, the City paid on average last year $2.68 per GGE. The price per GGE
is subject to change based on market rates. Currently, the national average rate for the
west coast area is $2.81 per GGE.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with c ertainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Sufficient funds are appropriated in the Department’s Fiscal Year 2018-19 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 $70,000.