Agenda Information Sheet
DEPARTMENT: Solid Waste & Recycling Department
CM/ ACM: Mario Canizares
Date: July 24, 2017
SUBJECT
Title
Receive a report, hold a discussion, and provide a recommendation regarding a compressed natural gas (CNG) fueling facility at the intersection of Mayhill Road and Spencer Road.
Body
BACKGROUND
Since October 2012, the Solid Waste Department has provided the Public Utilities Board (PUB) and the City Council a number of briefings regarding the department's plans to pursue compressed natural gas (CNG) as an alternative fuel. As those discussions evolved, plans were presented to and approved by the PUB and Council to construct a CNG fueling station, to offer public CNG sales, and to convert the Solid Waste fleet to the CNG fuel system.
In the fall of 2013, the department began converting the Solid Waste fleet to the CNG fuel system and commenced negotiations with a firm to construct a CNG fueling station. Shortly thereafter, negotiations with the firm stalled, and the department received Council approval to contract with Ultimate CNG (UCNG) for mobile fueling services on April 15, 2014. The initial agreement was for $120,000 for a contract term of three years. Since that time, the department has remained on the mobile fueling platform and continued converting its fleet to the CNG fuel system. As the department's demands for CNG increased, the department twice received authority to amend the contract amount. As of November 2015, the contract for the mobile fueling system had grown to $1.9 million.
During its August 22, 2016 meeting, the City Council awarded a $2.7 million contract to Zeit Energy for the construction of the CNG fuel station. In September 2016, the Solid Waste Department received a $600,000 grant from the Texas Commission on Environmental Quality (TCEQ) under the condition that the City make CNG fuel available through public sales for a period of no less than three (3) years. To date, $201,368 of the grant has b...
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