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HomeMy WebLinkAbout04.A- Public Works CITY OF SAN BERNARDINO Tony Frossard-DIRECTOR PUBLIC WORKS DEPARTMENT 300 North 'T)"Street San Bernardino, CA 92418-0001 909.384.5140 San Berner ino Entered Into Rec. at MCC/CDC Mfg; by; Agenda Item No: -/.4- Date: April 22, 2013 by. . City Gl I'll rk/CDC Secretary To: The Mayor and Common Council City of San Bernardino From: Tony Frossard, Public Works Director Subject: CNG Pump Replacement Copies: Allen Parker, City Manager The Public Works Department, Fleet Division operates a Compressed Natural Gas (CNG) fueling station at the City yard. The CNG station is part of the grant-funded LNG/CNG station built in 2008. The CNG pumps are down due to equipment failure. Many of our City vehicles are CNG powered and the City also sells CNG fuel to two bus companies. While the pumps are down, the City trucks must now fuel in Redlands taking time away from work days. It is 8 miles from the City yard to the Redlands yard and takes approximately 20 minutes each way. Also, because Redland is a small station, there is a high probability of waiting in line to fuel the vehicle. As our trucks fill in Redlands, they pay the full rate for CNG $2.65 per gallon equivalent. This is compared to the cost of$0.97 per gallon equivalent when fueled at our City station. The CNG station is also a revenue source for the City, as two bus companies fuel at our station regularly. We charge $2.67 per gallon equivalent and pay only $0.97 each. The fuel consumed by the buses generates $15,000 to $18,000 of revenue per month. After having the CNG compressor inspected, staff was advised that it lost oil pressure, which caused the unit to overheat leading to a catastrophic failure. The vendor, Applied LNG Technologies, has invoiced the City for repairs in the amount of$26,742.38. It is the recommendation of the City Manager to immediately approve payment of this invoice in the amount of$26,742.38.