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Galaxy Energy pitches fleet-fueling plan as city weighs tank replacement and off-site options
Summary
Galaxy Energy told the council its fleet-fueling program could lower per-gallon costs and increase city royalties; staff outlined options including off-site fueling via the school-district yard, commercial card programs, or reinstalling split 10,000-gallon underground tanks with estimated replacement costs.
During the public-comment period and later staff presentation, representatives outlined competing approaches to replacing the city’s aging single-walled underground fuel tanks.
Jim Kaiopoulos, president of Galaxy Energy Company, reminded the council of an exclusive licensing arrangement and said the city had received substantial royalties from the facility. "We estimate is close to $700,000 since we've been operating with the city," he told the council and said Galaxy’s fleet-fueling program could offer lower fuel prices to city vehicles while increasing royalties to the city.
Public Works Manager Samantha Byfield presented staff’s analysis of options after the state-mandated tank removals. She said removal costs alone are estimated at about $222,000 and that full replacement at the yard — a single split 10,000-gallon tank with 5,000-gallon capacity for each fuel type — is quoted at about $880,000 (removal plus installation could vary if remediation is required).
Staff outlined off-site fueling alternatives: an agreement with the Placentia-Yorba Linda Unified School District (currently providing unleaded only), and a commercial fuel-card program (SC Fuels) that gives slightly better than retail rates but generally costs more than bulk delivery. Staff estimated off-site retail fueling would add roughly $60,000 per year for unleaded use and about $12,000 per year for diesel, compared with bulk tank delivery, not including potential royalty offsets from a Galaxy arrangement.
Samantha recommended reinstalling underground tanks to preserve emergency fueling capacity and local control, arguing double-walled modern USTs have expected service lives of 30–50 years and help ensure fuel availability during power outages. Councilmembers asked staff for further analysis — including insurance and total cost comparisons that account for any royalties — before a final procurement decision.
Council did not vote to award a contract; staff said they would continue analysis and return with comparative numbers.
