TITLE
Recommendation to adopt Specifications No. PA-01106 and award contract to Applied LNG Technologies for the purchase of liquefied natural gas fuel and related supplies, in the estimated amount of $1,000,000 for the period commencing with award for one year, with the option of renewing for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is being requested to enter into a contract for the purchase of liquefied natural gas (LNG) fuel, including the delivery, loading and unloading of the fuel to the City's LNG fueling station located at the Fleet Services facility at 2600 Temple Avenue.
In 2001, the South Coast Air Quality Management District (AQMD) adopted strict rules designed to reduce pollution from heavy-duty diesel vehicles. Government fleet operators adding or replacing equipment are now prohibited from purchasing vehicles that operate using diesel. LNG has been chosen by the City to replace diesel and it is expected to be the dominant alternative fuel for heavy-duty vehicles for the foreseeable future.
The City began replacing diesel vehicles with LNG vehicles in 2003 and currently operates approximately 60 LNG refuse trucks and street sweepers and uses approximately 10,000 gallons of LNG per week. These vehicles currently receive fuel at a temporary LNG refueling station located at the Fleet Services facility on Temple Avenue. The City is currently constructing a permanent 15,000-galion capacity LNG station with dual fueling nozzles to replace the temporary station and keep pace with the growing demand for LNG. By 2011, the City is projected to have in operation over 100 LNG vehicles consuming an estimated 5,000 gallons of LNG per day. Upon completion, the LNG fueling station will be operated and maintained by the Public Works Department.
Within the past year, the City has experienced several LNG fuel supply disturbances due to regional (Western United States) LNG fuel shortage...
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