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File #: ID#15-838    Version: 1 Name:
Type: Action Item Status: Passed
File created: 9/14/2015 In control: City Council
On agenda: 10/8/2015 Final action: 10/8/2015
Title: Award a purchase contract in the amount of $2,298,049.65 to Clean Energy for the purchase of liquid natural gas (LNG) fuel - Bid File 9294
Sponsors: Department of Transportation
Attachments: 1. LNG Products Requirement Contract 100815 092315.pdf

REPORT TO THE CITY COUNCIL

 

 

 

October 8, 2015

 

 

FROM:                     BRIAN R. MARSHALL, Director

Department of Transportation

 

BY:                                          JOSEPH AYERZA, Fleet Manager

                                          Fleet Management Division

 

SUBJECT

Title

Award a purchase contract in the amount of $2,298,049.65 to Clean Energy for the purchase of liquid natural gas (LNG) fuel - Bid File 9294

 

Body

RECOMMENDATION

 

Staff recommends Council award a purchase contract in the amount of $2,298,049.65 for the purchase of LNG fuel.

 

EXECUTIVE SUMMARY

 

The Department of Transportation, Fleet Management Division is seeking to establish a requirements contract for LNG fuel to be used by the Department of Public Utilities within the City of Fresno.  The LNG fuel will be used to power the City-owned refuse trucks that are used daily to collect household trash, green waste, recyclables, and neighborhood clean-up of solid waste material.

 

BACKGROUND

 

The use of LNG fuel to power the City refuse truck fleet provides 40 percent lower ozone forming emissions and 20 percent lower greenhouse gas emissions.  The new contract for LNG fuel will utilize renewable natural gas (RNG) from solid waste landfills and waste water treatment facilities.  The RNG is processed and purified to pipeline quality standards, then placed in the interstate natural gas pipeline.  Once in the pipeline, it can be utilized to produce the LNG.

 

A competitive bid was prepared and distributed to perspective proposers.  Two responses were received in a public opening on June 9, 2015.  The proposal from Clean Energy was selected as the proposal that best met the City’s needs.  Its proposal was deemed both responsive and responsible and it was the low bidder.

 

Council may award a purchase contract to Clean Energy located in Seal Beach, California, for the amount of $2,298,049.65 or the Council may reject the proposal.  If the proposal is rejected, the project will be re-bid resulting in a delay of approximately 60 days.

 

ENVIRONMENTAL FINDINGS

 

This is not a “project” pursuant to CEQA Guidelines Section 15378.

 

LOCAL PREFERENCE

 

Local preference was not applied because no local companies submitted bids.

 

FISCAL IMPACT

 

Funds for the purchase of the LNG fuel were included in the FY16 adopted budget under the operations of the Fleet Management Division.

 

 

Attachment:

LNG Products Requirement Contract