November 22, 2013
Contact: Ken Robbins, General Manager
COMPRESSED NATURAL GAS (CNG) FUELING STATION UPGRADE FOR DISTRICT YARD
(Westminster, CA) – The Midway City Sanitary District is using its portion of pass-through monies it received from the elimination of the Westminster RDA to meet State mandates to convert its solid waste fleet to an alternative fuel source by 2020 and WILL NOT HAVE THE NEED TO RAISE RATES. The District has hired Greenberg Farrow engineering to design a Compressed Natural Gas (CNG) fueling station at the District yard. This will save an estimated $129,000 per year in fuel costs once the entire fleet is fully converted. The District is currently soliciting bids for two new CNG solid waste trucks and is planning to upgrade a total of ten over the next five years.
In June of 2011, the State Legislature significantly altered redevelopment agencies (RDAs), and subsequent court action resulted in the complete elimination of RDAs. In making their decisions, the governor and State Legislature weighed the need to help restore core local services delivered by schools and other local agencies like the Midway City Sanitary District against the benefit of using property tax revenue for business development incentives.
Returned tax-increment is generally classified as unrestricted revenue, and therefore the Midway City Sanitary District has flexibility as to how this resource can or should be expended, including the funding of normal business operations.
The Board of Directors of the Midway City Sanitary District has carefully study this vital Capital Improvement Project (CIP) and after review for cost-effectiveness. The question asked was location,District yard vs. offsite slow filling of the solid waste fleet? Offsite slow fill implies that MCSD is under contract for overnight parking and fueling of the solid waste fleet. The cost of the fuel would be similar to both operators but the contract would add fees for use of the offsite facility including equipment maintenance, overhead items like lighting and security, insurance, and profit. The District would save an estimated $30,000 per year by keeping the fueling station at the District yard. Total estimated annual saving will be $159,000 per year not including the estimated 7.5 hours per week in personnel time it currently takes to fuel offsite.
# # #
The Board of Directors and Employees of Midway City Sanitary District work diligently to provide sewer and solid waste services to the residents of the District.