HomeMy WebLinkAbout9 MOU with the Town of Truckee for Fueling Facilities
December 16, 2020 with the Town of Truckee for the Use of Fueling FacilitiesConsideration to Approve a Memoranda of Understanding ACTION ITEM #9
•BACKGROUND / HISTORYBACKGROUND / HISTORY of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with
the Town of Truckee for the Consideration to Approve a Memoranda of Understanding 16,043 gallons-Gasoline •18,373 gallons-Diesel •nnual fuel usage A•and traffic)supply trucks coming
to Truckee (weather -Accessibility of fueling re•up generation (outages)-Existing fueling facilities have no back•Fueling challenges in winter months•round-equipment, and emergency
generators yearDistrict requires access to local fueling facilities for fleet vehicles,
•NEW INFORMATIONNEW INFORMATION of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town
of Truckee for the Consideration to Approve a Memoranda of Understanding successfulfuel sharing agreement if term -District could enter into a long•Term of 3 months (January, February,
and March, 2021)•roject to use Town’s facilityPDistrict and Town staff proposed a Pilot •Facility has back up generation•Ability to use renewable diesel (lower GHG impact)•Cost savings•Advantages
include•2020 regarding sharing fueling facilitiesTown) staff in July, of Truckee (taff initiated discussions with Town S
•NEW INFORMATIONNEW INFORMATION of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town
of Truckee for the Consideration to Approve a Memoranda of Understanding elps ensure an uninterrupted supply of fuelH•Enables switch to renewable diesel•Cost savings•Second tank allows
for full trailer amounts to be delivered•Corporation YardTown gallon tank to be installed at the Pay a fair share of a second 20,000 •14,000 gallons diesel / 6,000 gallons gasoline•District
pays a fair share of existing 20,000 gallon tank•greement proposal (New Tank Project)Aterm Fueling -Long•Agreementterm -ongLIf Pilot Project successful, the District could enter into
a
•$0.64$2.83$3.47Unleaded Gas$0.19$3.15$3.34Renewable DieselCost DifferenceTownFlyers (Existing)Product (per gallon)NEW INFORMATIONNEW INFORMATION of Fueling FacilitiesUse with the Town
of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding
Per gallon costs shown in table (Town price includes O&M costs)•14,106savings of $Estimated annual •facilitieby sharing fueling Cost savings •12,000 gallons of gasoline•28,000 gallons
of diesel•ueling availability once agreement is in placeF•customersof fueling access in winter months to serve our Security •term Fueling Agreement benefitsLong
•$260,000CostTotal$125,997District Contribution (Includes Fair Share of Existing Infrastructure)$134,003Subtotal of the Town and Truckee Fire Contribution$50,399Truckee Fire Contribution$83,604Town
of Truckee Contribution Cost$260,000Estimated Cost of New 20,000 Gallon Fuel Tank is NEW INFORMATIONNEW INFORMATION of Fueling FacilitiesUse with the Town of Truckee for the Consideration
to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding Costs assumes the Truckee Fire
Department joins the agreement•tankand installation of a new 20,000 gallon fuel urchase P•facilityfueling existing share reimbursement of a portion of the air F•125,997the Town an estimated
amount of $District pays •term Fueling Agreement costs -Long
•NEW INFORMATIONNEW INFORMATION of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town
of Truckee for the Consideration to Approve a Memoranda of Understanding term Agreement after the Pilot Project is complete-LongStaff will report back to the Board on a final recommendation
for a •Termination provisions•Insurance•Indemnity•Minor revisions will be required to address•Town Council approved draft MOU at December 8, 2020 meeting•Term Agreement (New Tank Project)-Long•Pilot
Project (3 month term)•District Counsel and Town CounselUnderstanding (MOU) was drafted and reviewed by of Memoranda
•FISCAL IMPACTFISCAL IMPACT of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town of
Truckee for the Consideration to Approve a Memoranda of Understanding with probably small net savingsAnnual facility O&M costs are estimated conservatively at net neutral, •Annual fuel
cost savings are estimated at $14,000•returnedEnsure District’s portion of undepreciated costs of investment are •than 30 yearsMOU will need language addition to ensure any termination
shorter •3% of reserve balanceof approximately $126,000 represents nbudgeted capital investment U•November 30, 2020 balance of $3.8 millionin Electric Capital Reserve, which has a funds
exist Sufficient
•RECOMMENDATIONRECOMMENDATION of Fueling FacilitiesUse with the Town of Truckee for the Consideration to Approve a Memoranda of Understanding of Fueling FacilitiesUse with the Town of
Truckee for the Consideration to Approve a Memoranda of Understanding provisionsto the indemnity, insurance and termination Manager and District Counsel including, but not limited to,
revisions presented with such changes as are acceptable to the Interim General the Pilot Project and New Fuel Tank Project, in substantially the form terms for the District’s use of
the Town of Truckee’s fueling station in Draft Memorandum of Understanding (Attachment 1), establishing Approve and authorize the Interim General Manager to execute the