sr-020811-3ec~®
ctYoe City Council Report
Santa Monica
City Council Meeting: February 8, 2011
Agendaltem: ~E
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: LNG Fuel for the Big Blue Bus
Recommended Action
Staff recommends that City Council authorize. the City Manager to issue an interim
purchase order in the amount of $1,800,000 to Clean Energy, aCalifornia-based
company, to purchase liquefied natural gas fuel until a formal bid process is completed
and a new provider is recommended.
Executive Summary
The Big Blue Bus contract with Clean Energy to supply the City's fueling facility with
natural gas expired on April 25, 2010. An interim purchase order for $1,800,000 will
allow for the purchase of fuel until the ongoing fueling needs of the Big Blue Bus have
been defined at which point the bid process can move forward.The $1,800,000 is
anticipated to supply fuel through the rest of the Fiscal Year 2010-11.
Background
Since August 3, 2005, the Big Blue Bus has been purchasing LNG fuel from Clean
Energy. On April 25, 2006, City Council awarded Bid No. 2896 to Clean Energy for an
estimated expenditure of $10,000,000 fora four-year term to provide LNG engine fuel.
However, a contract was not executed until February 14, 2007. The total amount of fuel
purchased during this time totaled $11,829,319.
Discussion
The Big Blue Bus currently operates 124 natural gas transit coaches and plans to
increase the number of natural gas vehicles in the upcoming years. The Big Blue Bus
also provides natural gas fuel to City vehicles and the .Santa Monica Unified School
District which combine to consume an average of 200,000 gallons of LNG fuel monthly.
1
Staff is currently working on issuing a formal bid for a supplier of LNG fuel. Submittal of
a staff report and recommendation to Council will be in June 2011.
Financial Impacts & Budget Actions
The estimated expenditure amount of the interim purchase order to be awarded to
Clean Energy is $1,800,000. Funds are included in the FY 2010-11 Adopted Budget iri
41654.522974, LNG Fuel Revenue Vehicles.
Prepared by: Ralph Merced, Transit Maintenance Manager
Approved:
r-f _.
~i
St ph nie Negriff
Dr~ or of Transit Services
Forwarded to Council:
Rod Gould
City Manager
2