REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: SZARINA LOZANO, Management Analyst II
General Services Department
SUBJECT
Title
Award a requirements contract for Liquid Natural Gas (LNG) Fuel Station Maintenance to Chart International Inc of New Prague, Minnesota with offices in Rancho Dominguez and Valencia, California for two years, with four optional one-year extensions for $27,380 per year and a not-to-exceed contingency of $10,000 per year, plus annual CPI adjustments (Bid File 12401803)
Body
RECOMMENDATION
Staff recommends Council approve the award of a requirements contract for Liquid Natural Gas (LNG) Fuel Station Maintenance to Chart International Inc of New Prague, Minnesota with offices in Rancho Dominguez and Valencia, California for two years, with four optional one-year extensions for $27,380 per year, and a not-to-exceed contingency of $10,000 per year, plus annual CPI adjustments.
EXECUTIVE SUMMARY
The General Services Department, Fleet Management Division requests approval to establish a requirements contract for maintenance and repair of the Liquid Natural Gas (LNG) fuel station located at the Municipal Service Center, 2101 G Street in Fresno. The LNG fuel station supports the operation of 110 refuse trucks for the Department of Public Utilities, Solid Waste Management Division. It also provides fuel to external solid waste businesses such as Mountain Valley Express, Mid Valley Disposal and Republic. These refuse trucks depend on the LNG fuel station to be maintained and in optimal condition to ensure they have the fuel necessary to provide required services.
BACKGROUND
The General Services Department, Fleet Management Division is responsible for procurement, maintenance, and repairs of all municipal vehicles and equipment. Maintenance is performed on a diverse 3,100-unit fleet ranging from patrol cars to refuse trucks and electric carts to large construction vehicles.
Additionally, the Fleet Management Division owns, operates, and maintains a LNG fuel station that supports 110 refuse trucks. This station consists of four tanks, three compressors, three dispensers and other related components. Due to the nature of the specialty nature of maintenance, the Fleet Management Division has requested additional support to maintain and repair the LNG fuel station and keep it running in optimal condition.
Proposals were solicited for LNG Maintenance on January 29, 2024. On March 05, 2024, two proposals were received at the public bid opening. Chart International Inc was determined to be the most qualified proposer and provided the best value to the City with a price of $27,380 per year. The General Services Department, Fleet Management Division requests approval to add a not-to-exceed contingency of $10,000 per year to respond to unplanned emergency repairs and parts for the LNG fuel station.
The City Attorney has approved the contract as to form.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a “project”; therefore, it is exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was considered, however did not affect the outcome of the bid.
FISCAL IMPACT
No general funds will be used to purchase these items. The funding to cover the purchase cost of LNG maintenance has been included in the FY2025 adopted budget under the operations of the General Services Department, Fleet Management Division.
Attachment:
Evaluation Committee Report
Bid Evaluation