HomeMy WebLinkAboutFY 2011-12 - Purchase Compressed Natural Gas (CNG) FuelCITY OF PALM DESERT
PUBLIC WORKS
STAFF REPORT
REQUEST: APPROVE THE PURCHASE OF COMPRESSED NATURAL GAS
FUEL FROM SPECIFIC VENDORS IN AN AMOUNT NOT TO
EXCEED $40,000 FOR FISCAL YEAR 2011-2012
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 26, 2011
Recommendation
By Minute Motion, approve the purchase of Compressed Natural Gas (CNG) fuel
for Fiscal Year 2011-12 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, Auto Fleet -Supply Automotive Gas.
Background
Clean Energy is the primary CNG fuel supplier for the City's vehicles that operate on
CNG fuel. The primary CNG station at the Burrtec Waste Management facility is in
Palm Desert. The City is paying the current market rate of $2.23 per gallon for the
purchase of CNG fuel at the Burrtec fueling station. This rate is subject to change
based on market conditions.
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
Staff Report
Authorize the Purchase of CNG Fuel
May 26, 2011
Page 2 of 2
when the Burrtec fueling station has been out of service. Their current rate for CNG fuel
is $2.09 a gallon.
Although the current market rate for CNG fuel at Clean Energy's fueling station located
at the Burrtec facility in Palm Desert is greater than at the SunLine facility in Thousand
Palms, it is staff's recommendation that we continue using Clean Energy as the primary
source due to its location. Any saving in the fuel cost would be negated by additional
staff time and mileage associated with driving to Thousand Palms.
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.
Fiscal Analysis
This is a necessary, on -going expense with no fiscal impact beyond the cost of fueling
City vehicles.
Prepared By:
CaP6§ HerFAndez
Maintena a Services Manager
Paul S. Gibson, Director of Finance
Approval:
John M. Wohlmuth
City Manager
Departmeryt Dead
Mark Greenw od, P.E.,
Director of Public Works
CITY COUNCILACTION
AI'PROVI?D ✓ s :^:I D
RECEIVED • �,
MEETING DATE _ 5- cR ( �
AYES: --1 ae ki
NOES: &Nle ��-- —�— — —
ABSENT: ,Mnc
ABSTAIN: _tii D✓!r
VERIFIED BY: K1")ie /--�
Original on File with City Clerk' (Hf e