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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