Orange County NC Website
Browse       Search
DocuSign Envelope ID:02FOB961-A92E-4131E-AOE9-E5777906432F <br /> MEMORANDUM <br /> To: Bonnie Hammersley, Orange County Manager <br /> From: Brenan Bouma, Sustainability Coordinator <br /> Date: September 11, 2015 <br /> Subject: Orange County Propane Vehicle Fuel Purchase Agreement <br /> Background <br /> In June 2015, the Board of County Commissioners (BOCC) approved the receipt of grantfunding to <br /> implement a propane vehicle conversion and fueling project(see abstract item attached for project <br /> description). The contract associated with this project was signed in Mid-August and then countersigned <br /> by the grant funder(NC State University) on the 1St of September. <br /> Our sole-source vendor for the equipment and refueling package is Alliance Autogas. In order for Alliance <br /> Autogas to provide this propane vehicle conversion and refueling package, they require their clients.to <br /> sign a fuel purchase agreement. Under this agreement, Orange County will purchase all of the propane <br /> used in our vehicles from Alliance Autogas, or Blossman Services Inc. their parent company, over the <br /> next 5 years. The initial price per gallon will be set by the average weekly wholesale price, plus 59 cents. <br /> There is no minimum required purchase, however, if we use the amount of fuel estimated in the grant <br /> after the first year of the project, we have the option to switch to the state contract price for propane. <br /> These terms are laid out in more detail within the attached fuel purchase agreement. <br /> Analysis <br /> Depending on variations in the weekly average fuel price, propane may or may not be the least-cost <br /> option. Fortunately, drivers of these vehicles will be able to select the fuel that they use with the push of a <br /> button. <br /> Conclusion <br /> The five-year term and per-gallon price set by this fuel purchase agreement have been reviewed by an <br /> independent representative of the NC Clean Energy Technology Center, and have been found to be on- <br /> par or better compared with propane vehicle industry averages for this type of project. <br /> Staff recommends signing this agreement to enable this BOCC-approved project to move forward. <br /> Best regards: <br /> Brennan Bouma <br /> Sustainability Coordinator, Asset Management Services <br />