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HomeMy WebLinkAboutItem 11f - Purchase of Compressed Natural Gas ("CNG")Purchase Order for CNG Fuel June 16, 2020 Page 1 of 2 DATE: June 16, 2020 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Senior 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 $103,000 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, 2020. 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 $103,000. BACKGROUND The Public Works Services Department (the “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 14 heavy duty CNG vehicles, which include three street sweepers, two aerial lift trucks, a dump truck, a water tanker truck, a sewer jetter vacuum truck, a hydro-excavator truck, and five one-ton 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 Purchase Order for CNG Fuel June 16, 2020 Page 2 of 2 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. 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. It is estimated that the PWSD will use a total of approximately 26,000 Gasoline Gallon Equivalents (“GGE”) by the end Fiscal Year 2019- 20. This usage is approximately 2,000 GGEs more than the previous year and it is anticipated to increase in the coming year as the PWSD just placed two additional heavy duty CNG vehicles into operation. The new CNG hydro-excavator truck and water tanker truck are expected to each utilize approximately 200 GGE per month. Based on the existing purchase order, the City paid on average last year $3.34 per GGE, which includes state fuel tax fees. The price per GGE is subject to change based on market rates. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The request is for the purchase of CNG fuel for the City’s fleet in an amount not to exceed $103,000. Sufficient funds will be appropriated in the Department’s proposed Fiscal Year 2020-21 Operating Budget for the purchase of CNG fuel. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and approve a purchase order with Clean Energy for the purchase of CNG fuel for the City’s fleet in an annual amount not to exceed $103,000.