STAFF REPORT
PUBLIC WORKS SERVICES DEPARTMENT
DATE: May 19, 2026
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Carlos Aguilar, General Services Superintendent
SUBJECT: PURCHASE ORDER WITH CLEAN ENERGY FOR THE PURCHASE OF COMPRESSED NATURAL GAS FUEL FOR THE CITY’S FLEET IN AN
AMOUNT NOT TO EXCEED $160,000
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The City of Arcadia primarily utilizes the Clean Energy Compressed Natural Gas fueling station located at the Foothill Transit Center to fuel its Compressed Natural Gas (“CNG”) vehicles. The Purchase Order with Clean Energy expires on June 30, 2026.
It is recommended that the City Council approve a sole source Purchase Order with Clean Energy for the purchase of CNG fuel for the City’s fleet, in an amount not to exceed $160,000 for Fiscal Year 2026-27.
BACKGROUND
The Public Works Services Department (“PWSD”) has been strategically replacing vehicles that meet the City’s Vehicle Replacement Policy with alternative fuel vehicles, such as CNG, Hybrid, and Plug-in Electric vehicles. This approach allows the City to be compliant with the Air Quality Management District’s mandates that require heavy duty equipment to be replaced with alternative fuel vehicles, as well as reducing the City’s overall fuel costs and greenhouse gas emissions. The PWSD is responsible for the purchase of CNG fuel and currently operates a fleet of 16 heavy-duty CNG vehicles, which includes five one-ton pickup trucks, three street sweepers, three dump trucks, two sewer jetter vacuum trucks, one water tanker truck, one aerial lift truck, and one hydro-excavator truck.
Purchase Order for CNG Fuel
May 19, 2026
DISCUSSION
The PWSD utilizes two local CNG public fueling stations to fuel all City CNG vehicles.
The first station, owned and operated by Foothill Transit, is located less than one-half mile from the Public Works Service Center. The second station, owned and operated by the City of Pasadena, is located on Foothill Boulevard, just west of City limits. Clean Energy is the sole source CNG fuel and service provider for both fueling stations.
There are no other viable CNG fueling stations in the immediate area. Therefore, utilizing a sole source purchase order is necessary.
The PWSD has vehicle fueling cards provided by Clean Energy and is invoiced monthly for fuel purchased at these two stations. It is estimated that the PWSD will use approximately 26,600 Gasoline Gallon Equivalents (“GGE”) by the end of FY 2025-26.
This usage reflects a 2.56% decrease from the previous year. The estimated total usage of CNG for FY 2026-27 is expected to remain unchanged at 26,600 GGEs.
In recent years, the price of CNG has generally trended downward, though it has seen a slight uptick more recently. Unlike gasoline and diesel, which have experienced notable price increases in recent months, CNG prices have remained relatively stable, with only modest fluctuations. During FY 2025-26, the City paid on average $5.08 per GGE, which includes state fuel tax fees, as compared to $5.02 in FY 2024-25, and $5.08 in FY 2023-24. Based on recent monthly transaction trends, CNG prices are expected to remain relatively stable with a slight upward trend through FY 2026-27.
It is recommended that the FY 2026-27 Purchase Order reflects the estimated average cost of $5.40 per GGE for the expected 26,600 GGEs of CNG, plus an additional $15,000 for unforeseen price increases or added demand. Based on these projections, $160,000 will be needed to cover the expected costs in FY 2026-27.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment.
Purchase Order for CNG Fuel
May 19, 2026
FISCAL IMPACT
The request is to purchase CNG fuel for the City’s fleet in an amount not to exceed $160,000. Sufficient funds have been budgeted in the Department’s proposed FY 2026-27 Operating Budget for the purchase of CNG fuel.
RECOMMENDATION
It is recommended that the City Council determine that this action is not a project under the California Environmental Quality Act (“CEQA”); and approve a Purchase Order with Clean Energy for the purchase of Compressed Natural Gas fuel for the City’s fleet in an amount not to exceed $160,000.