HomeMy WebLinkAbout2/5/2003 - STAFF REPORTS (12) DATE: January 15, 2003
TO: City Council
FROM: Executive Director- Airports
COMPRESSED NATURAL GAS (CNG) VEHICLE FUELING STATION LEASE
AGREEMENT WITH ENRG FUEL USA, INC.
RECOMMENDATION:
It is recommended that the City Council approve a lease agreement between the City
of Palm Springs and ENRG Fuel USA, Inc. for the installation, operation and
maintenance of a CNG vehicle fueling station located at the Palm Springs International
Airport (PSP).
SUMMARY:
To establish a lease agreement between the City of Palm Springs and ENRG Fuel
USA, Inc. for a CNG vehicle fueling station at the Palm Springs International Airport.
BACKGROUND:
A cooperative clean air project between the City of Palm Springs, Sunline Transit
Agency and ENRG established a CNG vehicle fueling station at the Palm Springs
International Airport in 1995. The City of Palm Springs as well as several other
agencies have drastically increased their fleet operations to include alternative fuel
vehicles which use CNG as the primary fuel source. For the Airport, there are great
benefits in having the CNG station on site in order to service the emergency response
vehicles in a timely manner.
Staff received information from ENRG and the Sunline Transit Agency that there were
plans to upgrade the existing CNG fueling station. Additionally, with planning related
to the Southerly Access Roadway Reconfiguration project, it was determined that the
CNG vehicle fueling station would need to be relocated southeast of its present
location in order to accommodate the necessary infrastructure changes needed for a
smooth transition of vehicular traffic.The Transportation Security Administration(TSA),
as part of the overall reconfiguration design, has agreed that this relocation is
necessary for the access roadway to function properly.
It is estimated that$850,000.00 worth of improvements will be made to the new facility
that will be paid for by ENRG Fuel USA, Inc. The CNG vehicle fueling station will
have thirty thousand (30,000) standard cubic feet of storage capacity and can pump
500 gallons an hour compared to the existing 75 gallons an hour. The Airport will
receive a percentage rental amount of$0.025 per equivalent gasoline gallon sold at
the station to anyone other than PSP vehicles. On average the existing facility pumps
approximately 15,000 gallons a month to outside agencies, but is expected to increase
due to the higher dispensing capacity. At this rate, an additional $4,500 + per year of
new revenue is anticipated.
1014
i
City Council Meeting (01-15-03)
CNG Vehicle Fueling Station
Page 2 of 2
The term of the lease is for ten (10)years with four(4) consecutive lease term options
totaling thirty (30) years in full.
Part of the project will include the removal of some existing concrete tarmac which will
be paid forfrom an Airport Improvement Program (AIP)grant from the Federal Aviation
Administration (FAA). The Airport Commission recommended City Council approval
at its January 8, 2003 meeting.
cr. ALLEKI F r A.A.E. / R FH
Exec4A, e--it e or -Airports Assistan redtor of Aviation
APPROVED- `
City Manager �
Attachments: (1) Minute Order
(1) Lease Agreement
REVIEWED BY DEPI OF FINANCE
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