Council moves forward on dual‑fuel generator funding; gas‑company pricing still unsettled

The Rolling Hills City Council approved a budget amendment to fund the installation work for a previously approved dual‑fuel emergency generator while staff warned the city is still negotiating related gas‑company work that could raise the project’s cost.

"The item before you tonight is specific to the contract from the last meeting...This is the budget amendment portion of it," a staff presenter said, explaining the council had already approved the generator itself and the current resolution would move money from reserves into the capital improvement fund so the city can execute the construction contract.

Council members reviewed the accounting: earlier allocations totaled $250,000, some of which has been spent; one council member said about $177,000 remained and the resolution before the council would use roughly $111,000 of that, leaving about $66,000 in reserve. Several council members warned the city has not finalized pricing with Southern California Gas for the natural‑gas connection and that the CPUC‑required tax on that portion is nonnegotiable.

"Staff did not believe it was prudent to ask for additional monies for a project that we're not quite there yet," staff added, noting a separate procurement process for the gas‑company work remains ongoing and could increase the overall cost when a final bid arrives.

Council reaffirmed the intent behind the generator purchase — a primary natural‑gas connection with a propane backup to provide redundancy in an emergency — and directed staff to continue negotiations with the gas provider and to report back with cost clarifications. The budget amendment to move existing reserves and authorize the construction portion passed as part of the consent/agenda actions.