Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager Steve Stewart, Fleet Manager Eileen Horn, City/County Sustainability Coordinator
CC:	Cynthia Wagner, Assistant City Manager
Date:	November 10, 2011
RE:	Proposed Pilot Project for Compressed Natural Gas Vehicle

Staff was requested to discuss opportunities to add compressed natural gas (CNG) vehicles to the City fleet.  Staff, including Eileen Horn, Steve Stewart, and Diane Stoddard, met to discuss these possibilities.  This memo provides a status report related to the availability of CNG fueling sources in Lawrence and a proposal to undertake a conversion of a vehicle to CNG in 2012 in order to ascertain the effectiveness and viability of expanding CNG vehicles within the fleet.   

Fueling Availability:

Fueling with CNG is accomplished either through a fast-fill station, or a slow-fill station.  Slow-fill requires the vehicles to fuel over a long period of time, typically over night.  Fast-fill stations offer quick fueling, similar to fueling a gasoline vehicle.  Black Hills Energy, the local gas company, has a private fueling station located at its facility in east Lawrence.  Additionally, Scott Zaremba, with Zarco 66, is planning to open a quick-fill station at his 9^th and Iowa location.  Either of these stations would enable access to fueling opportunities.

Pilot Project Proposal:

Staff is recommending that the City proceed with a pilot project to convert a 2011 Ford F150 pickup truck utilized within the Public Works Department.  This vehicle is utilized by one of the street division supervisors and it is utilized regularly out in the community.  The conversion kit for this particular model of vehicle will not be available until May 2012.

Staff has been discussing this project with Black Hills Energy, Fuel Conversion Solutions, a fuel conversion company, and with Lincoln Composites, a CNG tank manufacturer.   While the companies are not able to make a firm commitment until after the first of the year, staff believes that the City will likely have assistance on this conversion of approximately 50% of the project cost.  The conversion will cost approximately $10,000 total, making the City contribution approximately $5,000.

Summary:

In summary, staff recommends that the City proceed with implementing the pilot project in May 2012, utilizing external participation to help reduce the cost of conversion.  The pilot project will enable the staff to evaluate the effectiveness of this alternative fuel in the City light duty fleet and a future determination can be made regarding expansion to additional vehicles, or other areas of the fleet.