HomeMy WebLinkAbout06.12.2006• •
COUNCIL WORK SESSION
June 12, 2006
4:45 p.m.
Council Chambers
Members present: Mayor Hurley, Kincaid, Welper, Gunderson, Greenwood, Cole, Schmitt.
Members absent: Getty.
Moved by Kincaid, seconded by Greenwood that the Agenda, as proposed, be approved. Ayes:
Six. Absent: Getty. Motion carried.
Mark Rice, Superintendent of Central Garage, reviewed the fuel program for the city. Mr. Rice
explained gasohol with 10 percent ethanol blend versus E85 ethanol blend. Using 10 percent
ethanol blend would require no engine modification and results in negligible MPG difference
from gasoline. The E85 ethanol blend requires costly engine modification, not easy accessible or
available, as much as 40 percent per gallon less expense and as much as 30 percent less MPG
difference from 10 percent.
Mr. Rice reviewed the use of diesel fuel. The 2005 Energy Bill mandates refinery changes to
Ultra Low Sulfur Diesel (ULSD) by October 2006. Diesel has less fuel lubricity in #2 diesel
fuel, fuel mileage per gallon reduction and additional cost expected to refine the ULSD.
Mr. Rice reviewed bio-diesel. Bio-diesel is available in blends of 2%, 5% to 20%. There is
increased lubricity over Ultra Low Sulfur diesel. Bio-diesel is actually recommended by diesel
engine manufacturers at blends up to 5 percent. The cost per gallon for bio-diesel is .04 per
gallon higher than #2 diesel today after rebates.
Mr. Rice reviewed the number of gallons of fuel used by the city for 2005 and the estimated use
for 2006. Mr. Rice explained the fuel cost comparison for gasohol and diesel.
Mr. Rice made the following recommendations. The city look into an annual fuel bid process
because it allows more accurate budgeting for the departments/city. It would hold the city
harmless in the event of any natural disasters, terror or other politically motivated incidents
world-wide. A bid process may be harmful to local, smaller vendors' ability to compete. Mr.
Rice recommended the city maintain use of 10% gasohol mixture because it would be cost
prohibitive to move vehicle fleet to E85 mixture and the city fuel facility is not compatible or
outfitted to support another grade of fuel. Mr. Rice recommended the city move to 2% bio-diesel
from #2 diesel before mandatory move to Ultra Low Sulfur Diesel because there is better
lubricity in diesel engines, more than 2% will require winter additives to guard against fuel gel,
and pricing per gallon is expected to improve versus expected cost of ULSD.
Ned DeBerg, Fire Chief, stated that the Fire Department likes to use #1 diesel for the
ambulances. The fire trucks are kept indoors so using #2 for them should not be a problem. Mr.
Rice suggested a #2 mix or winter mix.
Mayor Hurley commented that the type of fuels to use for city vehicles is a decision for the
Superintendent of Central Garage. Mayor Hurley would like Mr. Rice to move forward with an
annual bid process, including requesting quotes from local vendors.
With no further business before the council, it was moved by Schmitt, seconded by Kincaid that
the meeting be adjourned at 5:02 p.m. Ayes: Six. Absent: Getty. Motion carried.
Nancy Eckert
City Clerk