Items Types:
Business and Financial Services
For Meeting of:
February 23, 2015
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Compressed Natural Gas (CNG) Infrastructure Agreement and Gas Service Agreement between Peoples Gas System, a Division of Tampa Electric Company and the City of Orlando, S15-0200


The City of Orlando’s Solid Waste Division is planning on deploying Compressed Natural Gas (CNG) Solid Waste Trucks in its fleet beginning Spring 2015.  CNG Vehicles provide fuel cost savings and also provide significant environmental benefits.  The trucks that utilize CNG will be fueled in a time-fill application with a maximum fueling window of 14 hours.  In connection with the development by Peoples Gas System (“PGS”) of a compressed natural gas station for the City of Orlando’s Solid Waste Division’s vehicles, PGS is the only natural gas utility with existing distribution facilities located in proximity to the proposed site of the City’s proposed CNG Station.  There are no other natural gas utilities located in the area where they would be in a position to provide natural gas services to the proposed location.  TECO Peoples Gas (TECO) has a Natural Gas Vehicles (NGV) tariff rate allowing for the development of CNG stations to provide compressed gas for their fleet customers.

The CNG Infrastructure Agreement provides for installation of a CNG station, with approximately 36 fueling stations (and the capacity to expand in the future), to deliver CNG to the outlet of the dispensers for the Solid Waste Trucks.  TECO would incur the capital cost to construct the CNG station and the ongoing costs associated with the maintenance of the CNG station. The City will be assessed a monthly facilities charge of $20,914.44 as illustrated in Exhibit “B” to the Agreement and will also pay for distribution charges and electrical service to the site.  The Agreement is for a period of ten (10) years, with the option to renew and also provides for Insurance and Indemnification to the City.

The corresponding Gas Service Agreement provides for distribution of CNG to the City at 1010 S. Westmoreland Drive.

Fiscal & Efficiency Data:

Recommended Action:

Approve (1) CNG Infrastructure Agreement and (2) Gas Service Agreement with Peoples Gas System, a Division of Tampa Electric Company and authorize the Chief Procurement Officer to execute the same upon final review and approval of the City Attorney’s Office.

Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: David Billingsley
Approved By:

Department Date and Time
Budget Outside Routing Approval 2/12/2015 9:46 AM
City Clerk 2/12/2015 9:54 AM

Name: Description: Type:
FIS_CNG_Station_2-10-15.docx FIS, S15-0200 Backup Material
CNG_Facilities_Agreement_City_of_Orlando_Draft_clean_2.23.15.doc CNG Infrastructure Agreement, S15-0200 Backup Material
PGS_Gas_Service_Agreement.pdf PGS Gas Service Agreement, S15-0200 Backup Material

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