Consent 1.D.
Regular City Council Meeting
- Meeting Date:
- 11/24/2014
- TITLE
- Purchase Agreement for Compressed Natural Gas for Solid Waste Trucks with MDU
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
On February 24, 2014, Council approved the purchase of two new compressed natural gas (CNG) powered solid waste collection trucks. One truck has been received and the second truck is nearing delivery. As such, an agreement with Montana Dakota Utilities (MDU) is needed to purchase fuel for the trucks until a fueling station is constructed by the City. This fueling station is in the City's Capital Improvement Plan (CIP) for fiscal year 2017 . The contract term is for one year with the option of three one-year renewals. MDU is a sole source provider for this CNG.
ALTERNATIVES ANALYZED
City Council may:
- Approve the agreement to purchase the CNG, or;
- Not approve the agreement to purchase the CNG. If the agreement is not approved the two new CNG trucks will not be able to be fueled.
FINANCIAL IMPACT
The cost for the CNG for the Solid Waste trucks will be $1.99 per gallon for the first year. The price will be mutually agreed to by MDU and the City for the three additional one year periods specified in the agreement.
RECOMMENDATION
Staff recommends the City Council approve agreement with Montana Dakota Utilities to purchase CNG for the Solid Waste Division's two new CNG garbage trucks.