Title
Compressed Natural Gas for Solid Waste Services
Action
Action:
A. Approve the purchase of compressed natural gas, by the sole source exemption,
B. Approve a contract with Piedmont Natural Gas for the purchase of compressed natural gas for the term of seven years, and
C. Authorize the City Manager to renew the contract for up to three, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Rodney Jamison, Solid Waste Services
Sole Source Exemption
* G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when:
* Performance or price competition are not available;
* A needed product is available from only one source or supply; or
* Standardization or compatibility is the overriding consideration.
* Sole sourcing is necessary for this contract because there is only one supply source.
* City Council approval is required for any purchases made under the sole source exception.
Explanation
* Solid Waste Services' (SWS) current fleet includes 31 refuse trucks that are fueled by compressed natural gas (CNG).
* On March 28, 2016, a pilot program was approved to install a CNG fueling station to provide a centralized, less expensive option than purchasing CNG elsewhere.
* The site is located on city property adjacent to the SWS facility located at 1000 Otts Street in Council District 1.
* The onsite station provides cost avoidance by reducing miles driven directly to the vendor's fueling site and results in a reduction in maintenance and fuel costs.
* CNG is a less carbon intensive fossil fuel than petroleum, producing less local air emissions, and helps to diversify the fuel sources used by city fleet
* CNG can serve as a bridge to reduce air emissions until a feasible technology using a more fully zero-carbon fuel source is available.
* Annual expenditures are estimated to be $360,000.
Charlotte Business INClusion
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