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HomeMy WebLinkAboutFY 08-09 - Vendors - CNG FuelREQUEST: CITY OF PALM DESERT PUBLIC WORKS STAFF REPORT Approve the Purchase of Compressed Natural Gas (CNG) Fuel from Specified Vendors in an Amount not to Exceed $30,000.00 for Fiscal Year 2008-2009 SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works VENDOR: Clean Energy 3020 Old Ranch Parkway Seal Beach, Ca 90740 DATE: June 12, 2008 Recommendation: SunLine Services Group 32-505 Harry Oliver Trail Thousand Palms, CA 92276 By Minute Motion, approve the purchase of Compressed Natural Gas fuel for fiscal year 2008-09, in an amount not to exceed $30,000.00, from Clean Energy as a primary source and SunLine Services Group as an alternate source. Discussion: Clean Energy is our primary CNG fuel supplier for the City's 32 vehicles operating 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 purchased at the Burrtec facility is $1.34 per gallon. The Burrtec CNG fueling station in Palm Desert is the nearest CNG fueling facility and is vital to our needs. The Burrtec CNG fueling station is rarely out of service. However, in the infrequent times when it is non -operational, City staff must have another means of acquiring CNG fuel. SunLine Services Group in Thousand Palms is another provider for CNG fuel. Staff have used this CNG fueling facility only in emergency circumstances when the Burrtec fueling station was out of service. The current rate for purchasing CNG fuel at SunLine is $2.65 per gallon. Approve the Purchase of Compressed Natural Gas Fuel Page 2of2 June 12, 2008 The City has vehicle fueling cards from both Clean Energy and SunLine Group Services. Both entities invoice monthly with a complete purchasing detail. Funds are allocated to account no. 110-433-413-2170 for fiscal year 2008-09. Public Works staff hereby requests that City Council approve the purchase of CNG fuel, in an amount not to exceed $30,000.00, from Clean Energy as the primary source and SunLine Services Group as the alternative source. Fiscal Impact: None. Prepared Carlos ez Maintenan Services Manager Approval: Homer Croy ACM for D elopment Services Carlos L. Ortega City Manager Departme/t / / Mark Green wood, P.E., Director of Public Works Paul Gibson Finance Director CITY COTJidCIZ "?...T; ,! : APPROVED__ ,.,.. vw.a L:..,r"'.i:.11 IRE. ILJ 1 CrElp w.aa, 7,`Di, ...a_av, ..:cna C +... V. A. / y i _.1 wxscr0,.w tilMTING AYES : ,L ,,Ir.Gga L ,: a! NOES ABSENT VERIFIED on 4 -" .., `:.YCity Clerk's 0ffice.