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 to Clean Energy of Newport Beach, California for two years, with three optional one-year extensions, for an amount not to exceed $2,059,500 per year plus annual CPI adjustments (Bid File 12400370)
Body
RECOMMENDATION
Staff recommends Council approve the award of a requirements contract for liquid natural gas (LNG) fuel to Clean Energy of Newport Beach, California for two years, with three optional one-year extensions, for an amount not to exceed $2,059,500 per year plus annual CPI adjustments.
EXECUTIVE SUMMARY
The General Services Department, Fleet Management Division, requests approval to establish a requirements contract for the purchase of liquid natural gas (LNG) fuel. This contract will stabilize supply and pricing for liquid natural gas (LNG) fuel used by the City's refuse truck fleet. The Department of Public Utilities, Solid Waste Management Division utilizes 110 refuse trucks to pick up residential waste from residents of the City of Fresno, covering 103 square miles. Due to historical and anticipated costs for this product, the Purchasing Division has recommended a multi-year requirements contract be established to conform to purchasing best practices.
BACKGROUND
The General Services Department, Fleet Management Division is responsible for purchasing, storing, and dispensing LNG fuel for the City of Fresno's refuse truck fleet. The Solid Waste Management Division operates 110 refuse trucks powered by LNG. These trucks collect municipal solid waste, recyclables, and green waste for over 119,000 residential customers.
The LNG fuel purchased through this contract will be renewable natural gas (RNG) that is derived entirely from biogas purified to meet pipeline natural gas specifications. Biogas is derived from the...
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