HomeMy WebLinkAboutPurchase CNG Fuel from Specific VendorsX H
REQUEST:
CITY OF PALM DESERT
PUBLIC WORKS
STAFF REPORT
Approve the Purchase of Compressed Natural Gas Fuel from
Specific Vendors in an Amount Not to Exceed $40,000 for Fiscal
Year 2009-2010
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
VENDOR:
Clean Energy
3020 Old Ranch Parkway
Seal Beach, Ca 90740
SunLine Services Group
32-505 Harry Oliver Trail
Thousand Palms, CA 92276
DATE: May 21, 2009
Recommendation:
By Minute Motion, approve the purchase of Compressed Natural Gas (CNG) fuel
for fiscal year 2009-10 in an amount not to exceed $40,000 from Clean Energy,
as the primary source, and SunLine Services Group, as an alternative source.
Funds for the purchase of CNG fuel are budgeted in General Fund Account No. 110-
4331-413-2170.
Discussion:
Clean Energy is the primary CNG fuel supplier for the City's vehicles that operate on
CNG fuel. Clean Energy operates four commercial CNG refueling stations throughout
the Coachella Valley including the CNG station at the Burrtec Waste Management
facility in Palm Desert. In previous years, the City's franchise agreement with Burrtec
allowed the City to acquire a special rate for the purchase of CNG fuel at the Burrtec
CNG facility. In February 2009, the contract for the special CNG rate expired, and
negotiations for the City to continue receiving a special CNG fuel rate have been
unsuccessful. The City is now paying the current market rate of $1.84 per gallon for the
purchase of CNG fuel at the Burrtec fueling station. This rate is subject to change
based on market conditions.
Staff Report
Page2of2
May 21, 2009
The Burrtec CNG fueling station is rarely out of service. However, in the infrequent
times when it is non -operational, City staff must have an alternative source for acquiring
CNG fuel. SunLine Services Group in Thousand Palms is another provider for CNG
fuel. City staff has used the SunLine fueling facility only in emergency circumstances
when the Burrtec fueling station has been out of service. Their current rate for CNG
fuel is $1.94 a gallon.
The City has vehicle fueling cards from Clean Energy and SunLine Services Group and
is invoiced monthly with a complete purchase detail by Clean Energy and SunLine when
used.
Prepared By:
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Carlos Hernandez U
Maintenance Services Manager
Approv
Homer Cr
ACM for
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elopment Services
M. Wohlmuth
Manager
Departm
Mark Greenviood, P.E.,
Director of Public Works
Paul S. Gibson
Finance Director
CITY COUNCIL3CTION
APPROVED �/ DENIED
RECEIVED OTHER
MEETING DATE
AYES: L_..t-1_i5Pny rery5c1 r/%1ec�y V(yj
NOES: None- -�
ABSENT: Nvne-
ABSTAIN: None
VERIFIED BY: q/lr
Original on File with City C1er1 's Office