SR 07-11-2017 3B
Ci ty Council
Report
City Council Meeting : July 11, 2017
Agenda Item: 3.B
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To: Mayor and City Council
From: Edward King, Director , Big Blue Bus, Transit Maintenance
Subject: Award Bid for Liquefied Compressed Renewable Natural Gas Fueling Station
Maintenance
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4271 to Clean Energy Corporation, a California -based company, for
maintenance and repair services related to the Liquefied Compressed Natural
Gas (LCNG) fueling station;
2. Authorize the City Manager to negotiate and execute an agreement with Clean
Energy Corporation, in an amount not to exceed $254,100 , including a $12,100
contingency for one year, with four -additional one -year renewal options, with a
three percent increase, for a total amount not to exceed $1,174,531 over a five -
year period, with f uture year funding contingent on Council budget approval.
Executive Summary
As part of the City of Santa Monica’s overall commitment to environmental
Sustainability, the Big Blue Bus (BBB) system has consistently sought the least -
polluting options for pow ering its fleet of approximately 200 buses serving approximately
16 million passenger boardings a year. The current fleet runs on renewable natural gas
sources derived from captured methane releases from landfills.
Staff recommends award of bid #4271 to Clean Energy to provide maintenance and
repair service s for the Big Blue Bus Liquid Compress ed Natural Gas (LCNG ) fueling
station at specified price and labor rates plus applicable sales tax . The award of this bid
would e nsure that preventative maintenanc e and repair services of the City’s LCNG
fueling station s in the Big Blue Bus Yard and at 5 th /Olympic continue to operate
uninterrupted. The annual expenditure for this bid is not to exceed $254,100, including a
one -time expenditure of $40,500 to repaint t he Liquid Natural Gas (LNG ) storage tanks
and a $12,100 contingency, with four one -year renewal options at a 3% price increase.
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The total expenditure for the five -year term is not to exceed $1,174,531 (see table
below).
Background
On March 31, 1999, the C ity awarded contract #7445 to RN L Interplan, Inc. for the
design and construction administration of a natural gas fueling station, which was built
and put into service in 2002. The facility was upgraded in 2012 , as part of a change
order to BBB’s maintenan ce facility expansion project under contract #8592 approved
on May 9, 2006, to enhance the dispensing capability of the CNG dispensing system to
allow for fueling of the NABI Articulated 60 -foot buses purchased in 2010 -2011. The fuel
station dispenses Rene wable Liquefied Natural Gas (LNG) and Compressed Natural
Gas (CNG) to BBB’s fleet and provides fuel to the 5 th Street fueling station used by
other city departments and the Santa Monica Malibu School District . BBB fuels 189
transit buses daily at the LCNG Fueling Station and dispenses approximately 3,550,000
gallons of renewable liquefied and compressed natural gas per year. This systems is a
key component of the City’s sustainability plan , which was adopted in September 1994
and updated on February 11, 200 3 , in which goals were set for alternative fuel usage in
BBB’s bus fleet.
On January 29, 2015, BBB entered into C ontractual S ervices A greement #9944 with
Clean Energy for maintenance and repair services for its LCNG Fueling Station. This
contract has allo wed BBB to maintain its vital fueling infrastructure in a state of good
repair , ensuring BBB operations continue s unhindered by technical issues in the fueling
process. The contract was awarded to Clean Energy Corporation and they have
adequately performed all duties specified under the contract. The last renewal option for
this contract expires on June 30, 2017 requiring BBB to bid out this contract scope.
Discussion
BBB purchases 100% domestically produced, Renewable Bio -Liquid Natural Gas
(RLNG) for us e in its fleet of transit buses. This fuel is derived from harvested landfill
methane and is processed through a filtration and refining process ensuring fewer
impurities in the fuel to produce a cleaner burn. This fuel is delivered to BBB as LNG
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and is st ored in tanks in its fueling station until it is dispensed to vehicles during the
fueling process .
The LCNG fuel system converts Liquefied Natural Gas into Compressed Natural Gas
and dispenses both types of fuel daily to BBB’s fleet of transit buses to e nsure that
buses are always available to meet fleet operational demands. The award of this
contract would ensure that the fueling system is maintained to O riginal Equipment
Manufacturer (OEM) recommendations , which is in compliance with all Federal, State,
and local laws, rules and regulations governing LCNG fuel storage and dispensing
systems.
The LCNG fuel system incorporates very complex , sensitive and expensive
components, some of which require lead times of up to four months to replace. To
ensure that these parts are not worn prematurely , it is necessary to perform
maintenance and service on the fueling equipment. When repairs are required, many of
these components would be warehoused to minimize downtime due to the essential
operation of the fueling s ite. In addition to the fueling components, proper maintenance
of the paint coat on the LNG storage tanks is necessary to preserve the structural
integrity of the tanks. This bid allows for a one -time repainting of the tanks to ensure
that their metal stru ctures are protected from damage due to rusting. Due to the safety
factors associated with working in and around a live LNG tanks, the LCNG maintenance
contractor would be the best entity to ensure that all safeguards are undertaken during
the preparation and painting of the tanks, including the sanding, cleaning and final
painting.
Vendor/Consultant Selection
On April 27, 2017, the City published a Notice Inviting Bids to provide maintenance,
repairs, service and parts for the BBB’s LCNG fueling station in accordance with City
specifications. The bid was posted on the City's online bidding site, and notices were
advertised in the Santa Monica Daily Press in accordance with City Charter and
Municipal Code provisions. Three hundred forty vendors were notif ied, of which thirteen
vendors downloaded the bid. One bid was received and opened in public on May 15,
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2017 , per the table below:
Cost Estimate Frequency Needed per task Annual Cost
LNG Tank Painting Performed once during contract
40,50 0
LCNG System Parts Based on Avg. need per year
131,580
Inspection and Repairs Labor Based on 268 hrs. per year
36,800
92 day service Performed Quarterly - Amt. per year
33,120
5% Contingency
12,100
Total 1 year amount
254,100
Less: One time tank painting
(40,500)
Ongoing contract amount
213,600
Option year 1: 3% Increase
220,008
Option year 2: 3% Increase
226,608
Option year 3: 3% Increase
233,406
Option year 4: 3% Increase
240,409
Total Contract Amount
1,174,531
Procurement conducted additional outreach to vendors who downloaded the bid to see
why they did not submit a bid and received no responses from any vendors. The bid
was evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, capacity and skill, ability to deliver, quality of product, and compliance with
City specif ications and scope of work. Clean Energy has a positive work history
providing maintenance and repair services to BBB’s LCNG fueling station, and the
current bid parts prices are on average 5% above those submitted in their previous bid,
not including any contracted annual price increases . Based on these criteria, Clean
Energy Corporation is recommended as the best bidder.
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Financial Impacts and Budget Actions
The contract to be awarded to Clean Energy Corporation is for an amount not to exceed
$1,174,531. Funds of $254,100 are available in the FY 2017 -18 budget in the Big Blue
Bus Department. The contract will be charged to the following accounts:
416574.555015 $ 79,100
C410826.589000 $ 175,000
Annual Total $ 254,100
Future year funding is cont ingent on Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Clean Energy Oaks
B. May 9th 2006 approval of BBB expansion project
C. Modification to CCS #7445 dated 10/8/2002
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica ’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative ’s requirements. You may obtain a full copy of the Initiative ’s
text from the City Clerk.
This information is required by City Charter Article XXII —Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit ” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit ” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit ” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit ” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order tofacilitate compliance with the requirements of theOaks Initiative, theCity
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit ” is sought by
an entity, rather thanan individualperson, the information includes the nameof every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest inthe entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 overany12-month period;
2. Sale of material, equipment or supplies to theCity in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to orfromtheCity in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to anestablished land
use plan,where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit ” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or speci e” of a netvalue to the recipient of $10,000 in any12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, orrevenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
MichelleBrody SeniorVicePresident,Sales&Finance
May11,2017
peter.grace@cleanenergyfuels.com (949)437-1000
CleanEnergy
AndrewJ.Littlefair,MitchellW.Pratt,RobertM.Vreeland,BarclayF.Corbus,andPeterGrace
NoCEOorDirectorhasmorethana10%stakeinCleanEnergyFuelsCorp
REFERENCE:
Agreement No.10490
(CCS)