Title
Compressed Natural Gas for Solid Waste Services Pilot Program
Action
Action:
Award a unit price contract to the lowest responsive bidder Piedmont Natural Gas for the purchase of compressed natural gas for five years.
Body
Staff Resource(s):
Rodney Jamison, Solid Waste Services
Explanation
§ Solid Waste Services’ (SWS) current fleet includes 15 automated refuse trucks that are fueled by compressed natural gas (CNG); an additional five CNG trucks will be in service by the end of fiscal year 2016.
§ Currently, SWS CNG fleet drivers must travel daily to Piedmont Natural Gas (PNG) for fueling. Fuel expenditures are currently billed through the City’s Fuelman contract with unit pricing inclusive of the cost of the fuel, fueling station equipment, and facility usage.
§ Installing a CNG fueling station and refueling SWS trucks on a City site will provide a centralized, less expensive option than purchasing CNG elsewhere.
- PNG will install the fueling station and retain ownership through the life of the contract. The City will retain ownership of the site.
§ Additionally, the City will save the cost of travel to an offsite location. Estimated annual overtime savings total $100,000. A decrease in miles driven to fuel off-site should result in a reduction in maintenance and fuel costs.
§ The City’s Alternative Fuel and Vehicle Technology Team recommended that the City explore options for a pilot program to implement an onsite alternative fuel station.
§ On October 5, 2015, Management & Financial Services issued an Invitation to Bid; three bids were received from interested service providers.
§ Piedmont Natural Gas was selected as the lowest responsive, responsible bidder.
§ The company will be paid the unit prices set forth in the contract, a copy of which is available upon request. Unit price includes the cost to install and maintain the pilot fueling station equipment on the City site and the CNG as it is dispensed.
§ Estimated annual contract expenditures are $440,000.
Background
§ Since 2009, SWS has been awarded grant funds to assist with the purchase of 20 total refuse trucks fueled by CNG.
§ The SWS goal is to increase its CNG fleet to 30 trucks, equal to 50% of the current automated truck fleet.
§ The primary benefit recognized from CNG truck usage is the reduction in exhaust emissions and the impact to the environment. CNG is a proven alternative fuel that significantly improves local air quality and reduces greenhouse gas emissions. An additional benefit to the City is fuel cost savings, depending on the per gallon cost of diesel compared to the cost of CNG.
§ On November 26, 2013, the City’s Alternative Fuel and Vehicle Technology Team issued a Request for Information (RFI) seeking information to develop a City-wide program. The team consisted of members from SWS, Charlotte Water, Aviation, CATS, and Management & Financial Services. Members of the Privatization and Competition Advisory Committee served on the review team for the RFI.
§ SWS and the Team worked with Engineering & Property Management to identify City property adjacent to the SWS Facility to locate the station.
Charlotte Business INClusion
No subcontracting goal was established because there are no subcontracting opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Solid Waste Services Operating Budget