SR-205-003 (630)~_
~ City of
Santa Monica
City Council Report
City Council Meeting: April 25, 2006
Agenda Item;~ L
To: Mayor and City Council
From: Steve Stark, Chief Financial Officer
Subject: Liquefied Natural Gas (LNG) Fuel for the Big Blue Bus
Recommended Action
Award Bid #2896 to Clean Energy and authorize the City Manager to negotiate and
execute a contract for LNG fuei.
Executive Summary
Award of bid to supply and deliver LNG fuel for the Big Blue Bus to Clean Energy at
specific unit prices plus applicable sales tax. The bid award is for a one year period
with three additional one-year renewal options. The total estimated expenditure for the
four year term is $10,000,000.
Discussion
Backqround
The City of Santa Monica Big Blue Bus currently operates 89 alternative fuel transit
buses, which run 100% on domestically produced natural gas and play a significant role
in improving air quality in the City. The Big Blue Bus currently consumes approximately
10,000 gallons of LNG fuel on a daily basis. Over the next couple of years, the Big Blue
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Bus will continue to expand its LNG fleet, which wifl require a continuous and reliable
supply of fuel from a proven and qualified LNG fuel provider.
Vendor Selection
In September 2005, the City published Notices Inviting Bids to supply and deliver LNG
fuel for the Big Blue Bus in accordance with City specifications. Bids were received and
publicly opened and read on September 28, 2005. Bid forms were mailed to thirty four
vendors and notices were advertised in accordance with City Charter and Municipal
Code provisions. Two bids were received and were evaluated by City Staff.
Bids were evaluated based on competitive pricing, estimated delivery time, and
responsiveness to bid requirements. Based upon these criteria, Clean Energy is the
best company to provide the required product and services.
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Budget/Financial Impact
Since Fiscal Year 2005/2006 has begun, the estimated expenditure for the remainder of
the fiscal year will be $625,000. Funds are available in the amount of $625,000 in
41654.522974, LNG Fuel Revenue Vehicles. Budget authority for the subsequent years
will be included in each annual proposed City budget.
Prepared by:
Diane Howell, Purchasing Agent.
Approved: Forwarded to Council:
Steve Stark
Chief Financial Officer
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