REPORT TO THE CITY COUNCIL
November 8, 2018
FROM: GREGORY A. BARFIELD, Interim Director
Department of Transportation
BY: BRIAN BARR, Assistant Director
Department of Transportation
DUANE MYERS, Fleet Manager
Department of Transportation/Municipal Fleet Division
SUBJECT
Title
Award a requirements contract in the amount of $2,034,750 to Clean Energy of Newport Beach, California, to supply and deliver liquid natural gas to the Municipal Fleet Division fueling station. (Citywide)
Body
RECOMMENDATION
Staff recommends Council award a requirements contract to Clean Energy of Newport Beach, California, in the amount of $2,034,750 to supply and deliver liquid natural gas (LNG) to the Municipal Fleet Division LNG fueling station.
EXECUTIVE SUMMARY
The Department of Transportation, Municipal Fleet Division is seeking to establish a requirements contract for LNG to be used by the Department of Public Utilities within the city of Fresno. The LNG will be used to power the City-owned refuse trucks that are used daily to collect household trash, green waste, and recycling. Due to historical and anticipated costs for this product, the Purchasing Division has recommended a multi-year requirements contract be established. This contract will be awarded based on the approved competitive bidding process at a cost of $2,034,750.
BACKGROUND
The Municipal Fleet Division is responsible for purchasing, storing, and dispensing LNG for the refuse truck fleet. Solid Waste Management operates 100 trucks powered by natural gas. These trucks collect municipal solid waste, recyclables, and green waste for over 111,000 residential customers. The Municipal Fleet Division is in need of a contract for the purchase of LNG for the refuse truck fleet. A requirements contract is required due to the total dollar amount of the products purchased during each fiscal year. Last year the Municipal Fleet Division purchased over $1,030,000 of LNG totaling 1.5 million ga...
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