Agenda Information Sheet
DEPARTMENT: Solid Waste & Recycling
CM/ ACM: Jon Fortune
Date: April 24, 2017
SUBJECT
Title
Consider recommending to the City Council the adoption of an ordinance awarding a contract with Atmos Pipeline - Texas, a division of Atmos Energy Corporation, to provide alternative fuel transportation services, to transport natural gas, to the Alternate Fuels Station located at 1251 S. Mayhill Road, Denton, Texas, in the not-to-exceed amount of $2,285,450. (File # 6444)
Body
BACKGROUND
The City staff has researched the potential benefits of converting a portion of the Solid Waste & Recycling Department's collection fleet to alternate fuel, and has presented this information on multiple occasions to both the Public Utilities Board and the City Council. The Solid Waste & Recycling Department began purchasing compressed natural gas (CNG) trucks in FY 2013. During this period CNG fueling was initiated with a mobile fueling contractor.
During August and September 2016 the Public Utilities Board and City Council approved the expansion of the public Alternate Fuels Station with an award to Zeit Energy LLC. CNG fueling materials and equipment are on site and construction is expected to begin soon on the gas transmission line, metering station, and public fueling areas.
The SW&R Department plans to work with Atmos Pipeline - Texas to secure a gas transportation agreement. They own the natural gas pipeline located on city landfill property which will service the Alternative Fuels Station. The Transportation Agreement enables the Department to transport natural gas through Atmos Pipeline - Texas, in order to receive gas at the City's public Alternative Fuels Station.
The Transportation Agreement includes the gas transportation rates, and maximum quantities they have agreed to transport for Denton. Fees charged will include a monthly metering fee of $35, and a volume charge of $1.25 per MMBtu. Atmos Energy provides gas transportation service...
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