HomeMy WebLinkAboutPurchase of CNG Fuel FY 07-08CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
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REQUEST: Approve the Purchase of Compressed Natural Gas Fuel for Fiscal
Year 2007-2008
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
VENDORS:
Clean Energy
3020 Old Ranch Parkway
Seal Beach, Ca 90740
DATE: June 14, 2007
Recommendation:
By minute motion:
SunLine Services Group
32-505 Harry Oliver Trail
Thousand Palms, CA 92276
1. Approve the purchase of Compressed Natural Gas (CNG) from Clean
Energy as the primary source; and
2. Approve the purchase of compressed Natural Gas (CNG) from
SunLine Services Group as an alternative source only.
Discussion:
Clean Energy is our primary CNG fuel supplier for the City's 32 vehicles that operate on
CNG fuel. Within the Coachella Valley, there are only four commercial CNG refueling
stations that are operated by Clean Energy. Clean Energy installed and operates the
public CNG fuel station at the Burrtec Waste Management facility in Palm Desert. The
City's franchise agreement with Burrtec provides for a substantial discount on fuel at
that facility. The current rate for CNG fuel purchase at the Burrtec facility is $1.29 per
gallon.
The Burrtec CNG fueling station in Palm Desert is the nearest CNG fueling facility and
is vital to our operation. Rarely is the Burrtec CNG fueling station out of service.
However, when it is non -operational City staff requires other measures for acquiring
CNG fuel. SunLine Services Group in Thousand Palms is another provider for CNG
fuel. City staff use this CNG fueling facility only in emergency circumstances when the
Burrtec fueling station has been out of service. Their current rate for purchasing CNG
fuel is $2.40 a gallon.
Approve the Purchase of Compressed Natural Gas Fuel
Page 2 of 2
June 14, 2007
The City has vehicle fueling cards from Clean Energy and SunLine Group Services and
is invoiced monthly with a complete purchase detail by Clean Energy and SunLine when
used.
Public Works staff requests that City Council approve the purchase of CNG fuel from
Clean Energy as the primary source for CNG fuel and SunLine Services Group as the
alternative source. Funds for the purchase of CGN fuel are budgeted in account 110-
4331-413-2170.
Prepared by:
C1os Herndez
aintenan a Services Manager
Approval:
Homer Croy
ACM for Devel .
Carlos L. Orte
City Manager
ent Services
Department H - : d:
Mark Greenwood, P.E.
Director of Public Works
Paul Gibson
Finance Director
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Clean Energy
3020 Old Ranch Parkway, Suite 200
Seal Beach, California 90740 USA
Phone 562.546-0322
Fax 562.493-4532
www.cleaneneravfuels.com
June 21, 2007
Ms. Rachelle D. Klassen
City Clerk
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
l.CE,°i
CITY Cr.ER 'S9OFFICE
PALM DESER?. C�
?OP JU IN 25 AM 11: 45
Chad M. Lindholm
Regional Manager
Via US Mail
Re: Request for Approval of the Purchase of Compressed Natural Gas (CNG) Fuel
for FY 2007/08
Dear Ms. Klassen:
Clean Energy appreciates the City of Palm Desert's notification to continue a discussion on
Item Number V from the June 14, 2007 Council Meeting in which the City has asked for
approval to continue purchasing CNG from the Clean Energy station in Palm Desert as the
primary fueling site.
As background, Clean Energy built a public access CNG station at the Burrtec (formerly
Waste Management of the Desert) refuse yard located at 41-575 Eclectic Street in the City of
Palm Desert. The fueling facility has been operational since 2000 and Clean Energy offered
the City a preferential fueling rate of $1.05 per gallon tied to the Consumer Price Index.
Todav's preferential price to the City is $1.29 Der gallon. As a partner with the City, Clean
Energy is committed to offering a clean alternative fuel source at a substantially discounted
rate to ensure the City's continued transition to an alternative fuel fleet of natural gas vehicles.
If I can be of any further assistance before, during or after the Council meeting on June 28,
2007 when this agenda item will be addressed, don't hesitate to contact me at
(562) 493-2804.
Sincerely,
Chad Lindholm
Regional Manager, Southern California & Arizona
cc: Mark Greenwood, Director of Public Works
Carlos Hernandez, Maintenance Services Manager
North America's leader in clean transportation