SR-6E (15)
CcnrIraofs ., 61= . .
#= ~ G 3b ..1
~ i
~".11
~ 663/ ~ .
EPWM CP AA RS DB SL sm S \sp1617\cc1617awwpd MAR 2 5 1997
Council Meetmg March 25. 1997 Santa Monica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Award of Contract to Develop the Construction Document and BUild a
Compressed Natural Gas (CNG) Fuelmg Facility at the Santa MOnlca City
Yards and Authorization for the City Manager to Negotiate and Execute an
Agreement with the Southern California Air Quality Management Dlstnct for
$350,000 In Grant Funds for the City's Natural Gas Vehicle Program
Introduction
ThiS report recommends that the City Council award a contract for the development of
construction documents and the construction of a compressed natural gas (CNG) fueling
faCility at the City Yards and requests authOrization for the CIty Manager to negotiate and
execute an agreement With the Southern California Air Quality Management District
(SCAQMD) for 5350.000 In grant funds for the City's Natural Gas Vehicle Program
Background
In September 1994. City CounCil adopted the Santa Monica Sustainable CIty Program
One of the adopted target goals of the program was to convert 75% of the City's vehicle
fleet to vehicles uSing reduced-emiSSion fuels by the year 2000 Additionally, the federal
EnVironmental Protection Agency through the Clean AIr Act of 1990 and the EPACT has
published rules specifying that a certain percentage of vehicles purchased by mUnicipalities
be .clean fueled'. The percentages speCified by EPA (70% by the year 2Q06) aD! Iff"'" +1
-3 .
-r- ~ .
L-::.
MAR 2 5 197'"
-
aggressive as the 75% goal of the City's program but stili serve to demonstrate the
Importance of this Issue for Improving air quality In 1993, only 10% of the City's fleet
operated on reduced-emission fuels By July 1, 1996, 184% fleet vehicles (108 of 585),
were operating on reduced-emission fuels, mostly natural gas Currently, the
Implementation plan for the vehicle replacement program mdlcate that the City should
reach the 75% goal by2000
Currently, all of the City's natural gas vehicles are fueled off-site at the Gas Company's
Stewart Street natural gas fueling station The construction of an on-site CNG fueling
facility at the City Yard operations will make CNG fueling a routme component of City Yard
operations and thereby lessen dependence on an outside entity for these essential
services This IS a particular concern In the event of a local emergency The construction
of this on-site fuelrng facrllty wIll also permIt the CIty to "slow-flll" vehIcles overnIght, whIch
allows fuel to be more efficiently Injected Into the vehicle fuel tank and reduces down-time
that would otherwIse be necessary for fueling dunng normal operating hours
Over the useful life of this station (15 years), staff estimates that the City will dispense an
average of 600,000 equivalent gallons of CNG fuel annually This Will result In a total of
9.000,000 equivalent gallons of CNG fuel dispensed over the total useful life of the station
The reduction In emissions achieved by the replacement of fossil fuels (diesel and
gasoline) With CNG over this penod are estimated as follows 112,365 tons of carbon
2
dIoxIde. 2.268 tons of nItrous OXIde. 9,270 tons of volatIle organic compounds and over
20.000 pounds of particulates
In addition to the environmental benefits associated With this program, clean burning fuels,
such as compressed natural gas, are known to extend useful engine life In vehicles This
source of fuel. when dispensed through the proposed fuelmg faCIlity, will also cost less
than traditional gasoline and diesel fuels currently being used by the City The out-of-
pocket cost for the CNG fuel and the electrrClty to compress It Will also be Significantly less
than what the City IS paymg to the Gas Company at the Stewart Street fuelmg station
In October 1996. City staff applied for grant funds from the SCAQMD for support of the
CIty's conversion of diesel heavy-duty vehicles to natural gas The City was recently
Informed that It has received a $350,000 grant allocation for support of Santa MOnica's
heavy-duty natural gas vehIcle conversIon program, mcludmg support for the proposed
CNG fuelmg faCIlity at the City Yards ThiS staff report requests CounCil authorrzatlon far
the City Manager to negotiate and execute an agreement With the SCAQMD so the grant
fu nds can be used to offset a portion of the fueling faCIlity costs
Bid Package
The Notice InViting Bids was published In The Outlook on January 8 and 9,1997 A Notice
InViting Bids, along With the plans and speCifications were also sent to four (4) construction
Journals. and to SIX (6) women/mmorrty bUSiness enterprrse (WMBE) associations Bidding
3
----
packages were requested by 23 contractors and equipment suppliers The City Clerk's
Office received and read aloud SIX sealed bids on January 30, 1997
The bid results were as follows
1 Hickman Mechanical, Inc $ 775,000
2 InSight Automation, Inc $ 920,000
3 AlrPol Construction, Inc $ 939,656
4 Ballard ConstructIon, Inc S 992,000
5 Stevens Construction, Inc $1,288,000
6 A E Schmidt Environmental, Inc $1,604,370
The lowest bidder, Hickman Mechamcal, Inc was non-responsive for the following
reasons
1 Staff was unable to verify references after repeated attempts
2 The bIdder failed to list complete personnel expenence mformatlon, as
required
3 The bidder failed to list the percentages and dollar amounts of all sub-
contracts
4 The bid amount could not be substantiated
Staff recommends. In consultation With the City Attorney, awarding the contract to the
second low bidder, InSight Automation, Inc Staffs Independent cost estimate for the work
IS In the range of the second low bidder The references for the second low bidder were
all exceflent and all bid submittals were complete
4
--- ----
Budget/Financial Impact
CONSTRUCTION FUNDS REQUIRED
Contract $920,000
Contingency 65,000
TOTAL FUNDS REQUIRED $985.000
Budget actions are needed to receive and expend the SCAQMD grant, appropnate to an
expenditure account AB2766 local return revenues already received, and approve the use
of other funds from various City funds to finance the project The followmg detailed budget
actions are required
1 Increase revenue account 20-500-481-00000-0389-10000 by $350,000 to reflect
acceptance of the SCAQMD grant
2 Appropriate SCAQMD grant funds totaling $350,000 to CIP expenditure account 20-
710-461-20097 -8900-99460 (CNG Fuelmg FacIlity)
3 Appropnate $227,976 In already received but unappropriated AB2766 funds to
eXisting CIP expenditure account 01-710-202-20097-8900-99401, and reflect the
$227,976 as a revenue budget Increase In account 01-21 0-415-00000-0494-10000
4 Approve a total of 5299.264 In contributions to the Vehicle Management Fund from
the vanous fund balances as contained In the attached chart The Impact In each
fund IS listed below
5
Airport $7.362 Refuse $172,495
Audrtorlum 988 Water 21,128
Beach 11,791 Wastewater 5,417
Cemetery 2.963 General 73,200
Pier 3.920
5 Appropriate the $299.264 of additional contributions to the Vehicle Management
Fund CIP account 54-710-461-20097-8900-99460 (CNG Fueling FacilIty)
6 The remalnmg budget balances of $19.760 In Cl P account 01-71 0-202-20094-8900-
99401 and $88.000 In CIP account 01-71 0-202-20097-8900-99401 Will also be used
to fund the CNG Fuelmg Facility Funds In these accounts were previously
budgeted from AB2766 alternative fuel vehicle funds for development of the City's
Alternative Fuel Vehicle FaCIlities
Recommendations
Staff recommends that the City CounCil
1 Award a contract to develop the construction documents and bUild a compressed
natural gas fuelmg faCIlity at the Santa Monica City Yards to InSight Automation, the
lowest responsive bidder, m the amount of $920,000,
2 Authorize the City Engineer to Issue any necessary change orders to complete
additIonal work In conformance wIth the Administrative Instructions on change
orders.
6
3 Authorize the City Manager to negotiate and execute an agreement with the
SCAQMD to receive 5350,000 In Rule 2022 grant funds for the City's natural gas
vehicle conversion program, and
4 Appropriate funds and authonze receipt of revenues as detailed In the
Budget/Financial Impact section of this report
Prepared by CraIg Perkins. DIrector of EnvIronmental and Public Works Management
Renee Cowhlg, Maintenance Manager
Anthony Antlch, P E , City Engmeer
Attachment Budget Changes to Effect Increased Contnbutlons to the Vehicle
Management Fund For the Construction of the Compressed Natural Gas
(CNG) Fuelrng FaCility at the City Yards
7
ATTACHMENT
Budget Changes to Effect Increased Contributions to the Vehicle Management Fund
For the Construction of the Compressed Natural Gas (CNG) Fueling Facility
at the City Yards
Increase the "Vehicle Management Fund - Maintenance" contnbutlons In the following
accounts by the mdlcated amounts
Fund Account Amount of
Increase
General 01-700-274-00000-2300-00000 $73,200
Beach 11-500-521-00000-2300-00000 11,791
Water 25-500-671-00000-2300-00000 21,128
Refuse 27-500-441-00000-2300-00000 172,495
Pier 30-620-625-00000-2300-00000 3,920
Wastewater 31-500-661-00000-2300-00000 5,417
CIVIC 32-400-621-00000-2300-00000 1 988
Aud Itonum
AI rpo rt 33-620-631-00000-2300-00000 7,362
Cemetery 37 -500-641-00000-2300-00000 2,963
TOTAL I $299,264
Increase the Vehicle Management Fund .'Malntenance" Revenue Account (#54-500-461-
00000-0575-10000) budget by $299,264
A1)1) lb
HCKMAN (818) 442-5626
MECHANICAL 'fIt liE
INC. ...:..,..! . f ..... I MAR 2 5 1997
CONTRACIDRS
j[.... -I A r"- 11-, "L~L; CahforOla Contractors Lie "lo 451069
11930 Goldnng Road · Arcadia. CA 91006 March 24, 1997
Mayor and CIty CouncIl
CIty of Santa MOllIca
1685 MaIn Street
Santa MOnIca, CA 90407-2200
RE Compressed Natural Gas (CNG) Fuehng FacIlIty
Located at the Santa MOnIca CIty Yards, SP-1617
Dear CounCIl Members
As the apparent low bIdder at $775,000 00 on the above referenced contract, we hereWIth
respectfully request that the CIty CouncIl remove from the revlsed agenda (03/21/97) any
actIon to be taken on Item 6-E WhIch IS now scheduled before you on Tuesday, March 25,
1997
ThIS request IS made In order that we have sufficIent tIme to prepare a response to the
CIty Engmeer's Letter dated March 21, 1997 (ReceIved VIa fax, March 21, 1997 @ 4 40
PM) NotifYIng us that the Engmeenng DIVISIon IS recommendIng award be made to
Insight AutomatIOn Inc III an amount of $920,000 00 whIch IS $145,00000 higher than
our BId submItted on January 30, 1997
Yours very truly,
HICKMAN MECHANICAL, INe
.
&U 4..LL-
Claude HIckman, ChaIrman
CH/sd AW If:)
LIE.
MAR 2 5 1991