TITLE
Recommendation to adopt Specifications No. ITB FS15-113 REBID and award a contract to Applied LNG Technologies, LLC, of Westlake Village, CA, for furnishing and delivering both standard and renewable liquefied natural gas (LNG) fuel, in an annual amount not to exceed $900,000, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager; and
Authorize City Manager to increase Blanket Purchase Order No. BPFM15000059 with Clean Energy, of Newport, CA, by $100,000, for a total amount not to exceed $200,000, for the period ending
November 30, 2015. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Applied LNG Technologies, LLC, for furnishing and delivering of LNG fuel for use in City fleet vehicles. There are currently 112 LNG-fueled vehicles that support operations in the Public Works and Water Departments. These units include dump trucks, street sweepers, refuse trucks and pothole patch trucks. LNG fuel averages 30 percent of the cost of petroleum-based fuels. In heavy duty trucks, diesel fuel has been replaced with LNG to comply with local fleet regulations and remove diesel particulate matter from the air.
For the last three years, the City has used an annual average of 804,000 gallons of LNG that averaged $1.041 per gallon. It is anticipated that the use of LNG fuel will decrease over time, as units are replaced with CNG or other fuel vehicles. Fleet has researched the cost of LNG through the U.S. Department of Energy’s Information Administration and their projections of $1.07 per gallon were used in the alternative fuel cost calculations.
The previous contract expired on July 31, 2015. An interim purchase order in the amount of $100,000 was issued to continue providing LNG fuel without disruption while a new Invitation to Bid (ITB) was conducted. To ensure continuity of LNG supply until the new contract is in place, an additional amou...
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