SR-1000-001-06-0
TRANS:JBC:RN:jw:f:\trans\admin\council\wpfiles\templngsta
Council Meeting: September 12, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to authorize the City Manager to enter into a sole
source lease agreement with Applied LNG Technologies (ALT) to
provide the Santa Monica Big Blue Bus with a used Temporary Liquid
Natural Gas (LNG) fueling station Total not to exceed $197,000.
INTRODUCTION
This report requests that the City Council authorize the City Manager to enter into a
sole source lease agreement with Applied LNG Technologies (ALT) to provide
Santa Monica Big Blue Bus with a used temporary liquid natural gas (LNG) fueling
station in the total amount of $197,000.
BACKGROUND
quests that the City council
authorize the City Manager to enter into a sole source lease ag
Santa Monica Big Blue Bus (SMBBB) is in the process of designing and
constructing a Liquid Natural Gas (LNG) fueling facility to accommodate LNG-
powered buses due to be delivered in January 2001. The facility was scheduled to
be completed prior to arrival of the buses, but has been subject to delay. Staff
called all LNG fuel suppliers to determine if a temporary fueling alternative capable
of fueling up to 37 buses nightly could be supplied. A temporary LNG fueling
1
station owned by Applied LNG Technologies (ALT) and currently in use in Tempe
Arizona will become available early this fall.
DISCUSSION
The temporary LNG facility and related equipment must be leased as soon as
possible to ensure its availability when required by Santa Monica.
The monthly lease rate for the equipment will be $5,750 and the facility will be
required for six months. Transporting the equipment from Arizona to Santa Monica
will be a one time cost of $7,736. Permitting, installation and miscellaneous
expenses will be at cost plus 15%. ALT will be responsible for maintenance of the
temporary facility throughout the lease period. Station repair labor as necessary
over the time of the lease will be $65 per hour. Staff estimates that lease of
equipment , engineered drawings, permitting, on-site installation costs, and normal
repair costs over a 12 month period should not exceed $163,000 and with a 20%
contingency, the total not to exceed authorization request is $197,000.
BUDGET/FINANCIAL IMPACT
Cost Breakout:
$ 69,000 – Cost of lease for 12 month period.
$ 7,736 – One time transportation cost.
$ 86,264 – Permitting, Engineering, installation, & maintenance.
$163,000 - Sub Total
2
$ 34,000 – Contingency (20%)
$197,000 – Total
Budget authority for this lease is in the Capital Improvement Budget account
number C41010499.589000, “Transportation Facility Improvement”.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to enter into a
sole source lease agreement with Applied LNG Technologies to provide the Santa
Monica Big Blue Bus with a used temporary Liquid Natural Gas (LNG) fueling
station in a total amount not to exceed $197,000.
Prepared by: Diane Howell, Acting Purchasing Agent
Roy Neva, Facility Manager, Transportation
3