Title
Alternative Fuel Pilot Program/Implementation - Contract
History
In 2015, the Village was approached by Alternative Fuel Supply (AFS), LLC of Schaumburg, Illinois, a Liquid Propane Gas provider, regarding an alternative fuel program for propane usage. They propose a turnkey program which would reduce the Village’s need and dependence on gasoline and provide the Village an immediate return on investment with little upfront cost.
Alternative Fuel Supply, LLC, would absorb nearly all of the upfront infrastructure and conversion costs. The cost to the Village will be approximately $9,000.00 to construct a concrete pad and provide the needed electrical requirements for the propane station installation. This contract would make AFS the Village’s sole provider of propane and will guarantee the cost of propane to be $0.50 less per gallon equivalent than regular gasoline. The Village will phase the conversion of 42 vehicles within the police department, which has highest gasoline usage and would return the greatest initial savings. The Village should realize immediate savings after a single year in operation.
In early 2017, due to the minimal upfront cost to the Village and the near immediate return on investment, the Village Board approved authorized Village staff to proceed in contract negotiations for alternative fuel program/implementation with AFS.
Included is the final draft contract agreement, an analysis on propane tank installation and the propane filling station site plan located at the Public Works fueling station Staff and the Village attorney have evaluated the contract AFS provided making several recommended changes. The final agreement is anticipated to be consistent with this document.
On October 2, 2017, this item was reviewed by the Public Works Committee and recommended for approval and referred to the Village Board of Trustees for consideration. On October 16, 2017, this item was continued to the November 6, 2017 Board of Trustees meeting....
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