PANAMA CITY — Panama City is considering modifying its fleet of vehicles to run on natural gas.
The report from Zeit Energy, hired by the city to study natural gas conversion for a fee not to exceed $32,693, states the city would save at least $2 million dollars in fuel costs and possibly $4 million overall with an aggressive approach over a period of 20 years.
The initial fixed costs are extensive. The estimated cost for infrastructure, fueling and maintenance stations is $1,730,026, and the cost of replacing vehicles is $1,477,000 with a conservative plan and $1,522,000 with an aggressive replacement schedule. Zeit suggested replacing 38 vehicles: six front loaders, nine side loaders, two rear loaders, nine boom trucks, seven shuttle trucks, four pickup trucks and one container truck.
Zeit estimated the front and side loaders use more than 3,000 gallons of diesel fuel a month. Either replacement schedule suggests a tiered change, with some vehicles slated for replacement between 2015 and 2021.
Natural gas requires new facilities with new regulations. For instance, where air is introduced into a facility to ensure ventilation, Zeit recommends using methane detectors, modified HVAC systems and supplemental exhaust fans to maintain proper air flow. Equipment required at fast fill stations are compressors, gas dryer, storage vessels and a fast fill dispenser. The large compressors cost $247,000 each.
A site Zeit has suggested for a fill station is on Redwood Avenue just north of 11th Street. Factors in favor of that location include ease of public access and close natural gas lines.
One of Zeit’s suggestions to recoup those fixed costs is selling natural gas to public consumers. Also, in regards to financing, Zeit suggests applying for a Florida Department of Agriculture and Consumer Services grant worth up to 50 percent of the cost of equipment or $25,000 per vehicle.
The commission meets Monday at 5:01 p.m. at City Hall, 9 Harrison Ave.
In other business Monday, the commission is scheduled to:
- Vote for final approval of the 2014-15 budget and millage rate. At the Sept. 8 meeting the commission approved a millage rate of 3.85, down from last year’s rate of 3.87.
- Vote on the development order for the Marie Hotel site. The commission had asked for an expert legal opinion on the issue of clustering, with the developer applying all of the land in the property, including a parcel across Fifth Street, for the 44 units planned.
- Consider a $55,000 loan to the Downtown Improvement Board (DIB) with a 1 percent interest rate. The DIB will be responsible for $500 payments per month. The loan will cover the DIB’s debt accumulated over the years in part because of director severances.
- Hear a first reading of an ordinance annexing 3700 W. 23rd St. into the city from Bay County.
- Hear the first reading of ordinance amending zoning for 1612 Louise Ave. The property owner applied for insurances purposes.
- Consider accepting a Edward Byrne Memorial Justice grant for $10,132 to use for an electronic barcode management system.
