REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: SHARLEE FLORES, Senior Management Analyst
Department of Transportation
SUBJECT
Title
Actions pertaining to a Sole Source Agreement for the purchase of compressed natural gas:
1. Approve an agreement with Trillium Transportation Fuels, LLC, dba Love’s Alternative Energy for an amount not to exceed $35,000,000 for up to five years
2. ***RESOLUTION - Adopt a resolution authorizing an exception to formal bidding procedures and award the sole source agreement with Trillium Transportations Fuels, LLC DBA Love’s Alternative Energy for up to five years to purchase compressed natural gas (subject to mayor’s veto)
3. Authorize the City Manager or designee to execute the agreement and all related documents
Body
RECOMMENDATION
Staff recommends Council approve a Sole Source Agreement and Resolution authorizing the purchase of compressed natural gas (CNG) fuel from Trillium Transportation Fuels, LLC, dba Love’s Alternative Energy (Love’s) for an amount not to exceed $35,000,000 for up to five years. In accordance with Administration Order 3-3, approval of this item authorizes the City Manager or designee to execute the agreement and all related documents.
EXECUTIVE SUMMARY
Fresno Area Express (FAX) requests to establish an agreement with Love’s for CNG fuel due to intermittent outages of the FAX onsite CNG station. To continue transit services without interruption, the fixed-route bus fleet must have the ability to refuel at an alternate location when the onsite station is inoperable.
There are three CNG fueling stations within a reasonable distance from the Municipal Service Center (MSC). Of the three, two must be excluded from consideration due to capacity or contractual constraints, leaving Love’s as the remaining viable option. Establishing this agreement with Love’s for up to $7,000,000 per year and not to exceed $35,000,000 for a total of five years will guarantee that FAX is able to fuel the entire fixed-route bus fleet in the event of any onsite station outage. FAX staff has determined that this award conforms with the terms of Administrative Order 3-3, Sole Source Purchases Over the Formal Bid Limit.
BACKGROUND
FAX is currently under contract with Chart, Inc. for rehabilitation of the onsite CNG station. Due to ongoing rehabilitation and repairs, the CNG station is intermittently inoperable. In order to provide fixed-route transit services without interruption, FAX must have the ability to refuel the fleet at an alternate location.
Administrative Order 3-3, Sole Source Purchases Over the Formal Bid Limit, permits sourcing a product from one vendor when the Department satisfies the six (6) statements and findings listed in the administrative order:
1. FAX requires a fueling site with sufficient natural gas supply and dispensing equipment capable of fueling a fixed-route bus fleet.
2. A fueling option is needed in instances where FAX’s onsite fueling station is inoperable and would otherwise prevent FAX from providing transportation services to the citizens of Fresno.
3. FAX identified only three (3) CNG fueling stations within a reasonable distance from the MSC.
4. In spite of FAX’s efforts, Love’s Alternative Energy (Love’s) is the only provider of such fuel services that is willing to contract with the City and has a location in Fresno that can accommodate FAX’s CNG needs.
5. FAX seeks to establish a requirements contract for five (5) years in an amount not to exceed $35,000,000.
6. It is therefore proper for the City to dispense with the competitive bidding requirement in this instance and to authorize the Purchasing Manager to purchase the product in question under the sole-source exception.
Staff recommends City Council approve these actions pertaining to a sole source resolution and agreement with Love’s for the purchase of CNG fuel as needed.
The City Attorney has reviewed the Agreement and approved it to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, this action does not qualify as a “project”; therefore, it is exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because this is a sole source purchase.
FISCAL IMPACT
There is no impact to the General Fund from this action. Expenses from this contract shall be funded primarily through FAX enterprise funds and Measure C sales tax receipts. Sufficient appropriations were included and are available in the FY 2026 budget and will be included in subsequent budget years.
Attachments:
Agreement with Trillium Transportation Fuels, LLC, dba Love’s Alternative Energy
Resolution