HomeMy WebLinkAbout9 First Amendment to MOU with the Town of Truckee for Fueling FacilitiesAGENDA ITEM #9
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MEETING DATE:June 16, 2021
TO:Board of Directors
FROM:Steve Moore, Electric Operations Manager
SUBJECT:Consideration to Approve the First Amendment to the
Memoranda of Understanding with the Town of Truckee for
the Use of the Town’s Fueling Facilities and Funding of a
New Fuel Tank
APPROVED BY______________________________
Joe Horvath, P.E., Assistant General Manager/
Electric Utility Director
RECOMMENDATION:
Approve and authorize the Interim General Manager to execute the First Amendment to the
Memorandum of Understanding, establishing terms for the District’s investment into the
shared use and expansion of the Town of Truckee’s fueling station, in substantially the
form presented with such changes as are acceptable to the Interim General Manager and
District Counsel including, but not limited to, revisions to the indemnity, insurance and
termination provisions.
BACKGROUND:
The District utilizes a wide range of vehicles and heavy equipment in the operation and
maintenance of our public water and power utilities. Much of this fleet is considered critical
operations equipment, particularly during emergency repairs and utility service restoration.
An essential resource in the maintenance of this fleet is the ability to access fuel.
Historically, the District and other local public agencies have been challenged with local
fuel access during heavy storm events and fuel vendor facility failures.With the increasing
risk of power outages during high fire threat events, summer fuel access will become more
challenging in the future.
In early 2020,staff began to discuss fueling options with the Town of Truckee (Town)to
develop a Memoranda of Understanding (MOU, Attachment 2)for the use of the Town’s
fueling facilities. This was an effort to resolve long term challenges with fueling access in
winter months for critical equipment operated by local public agencies.Staff also identified
potential cost saving measures by sharing fueling facilities with the Town of Truckee and
the Truckee Fire District.The Town has recently converted its previous diesel supplies to
renewable diesel which will help the Town reach its Greenhouse Gas (GHG)reduction
goals. By sharing fueling f acilities with the Town, the District could also reduce our GHG
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emissions footprint with the use of renewable diesel.
At the December 16, 2020 Meeting, the Board authorized the General Manager to execute
an MOU with the Town of Truckee, including a pilot program for a shared fueling facility.
The District participated in the pilot program in which operational fleet utilized the Town’s
existing fueling facility for a period of approximately three months.The pilot program was
successful and well received by administrative and operational staff.The District, the Town
and the Truckee Fire Protection District have agreed to move forward with a long-term fuel
sharing agreement.
As the pilot program was underway, the District, the Town, and the Truckee Fire Protection
District initiated discussions regarding additional infrastructure enhancements to ensure a
more reliable and accessible fuel supply facility for all three public agencies.These
additional discussions included the desire to construct a covered canopy to protect the
facility from inclement weather, and additional pump infrastructure (total of four fueling
stations)to ensure continuous service in the event of a pump being taken out of service for
maintenance or replacement.Following these discussions, Town staff have developed an
updated engineer’s estimate for the additional infrastructure.
In order to carry forward the agreements and establish long-term financial commitments
associated with a new fuel tank, staff recommends that the Board authorize the General
Manager to execute the First Amendment to MOU with the Town (Attachment 1). The
amendment has been reviewed by staff and District Council.
This item is in support of the following objectives and goals identified by the District.
1.05.020 Objectives:
1.Responsibly serve the public.
5. Manage the District in an environmentally sound manner.
1.05.030 Goals:
1.1. Conduct the District’s business in a legal, ethical, open, and transparent manner.
5.5 Minimize negative impact of District operations on the environment.
FISCAL IMPACT:
Implementation of the terms in the MOU (as amended)for the New Fuel Tank Project
would result in the District providing the Town an estimated amount of $175,803 (see table
below) towards a fair share reimbursement of a portion of the Town’s existing fueling
facility and purchase and installation of a new 20,000 gallon fuel tank to be installed at the
existing Town Corporation Yard.
Estimated Cost of New 20,000 Gallon Fuel Tank Infrastructure $465,000
Depreciated Value of Existing Fueling Facility $238,989
Total Estimated Infrastructure Cost $703,989
Town of Truckee Contribution (65%)$457,593
Truckee Fire Protection District Contribution (10%)$70,399
Truckee Donner Public Utility District Contribution (25%)$175,803
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Sufficient funds exist in the Board Approved FY2021 Budget for the initial payment of
$59,747.25 for the District’s fair share of the existing facilities, as authorized with approval
by the Board of the original MOU on December 16, 2020. The remainder of the District’s
contributions will be included for consideration in the FY2022-23 operating budgets.
ATTACHMENTS:
Attachment 1:First Amendment to the Memorandum of Understanding with the Town of
Truckee
Attachment 2: Memorandum of Understanding with the Town of Truckee