TITLE
Recommendation to authorize City Manager, or designee, to amend interim Munis Contract No. 3182200099 with Clean Energy Fuels Corporation, of Newport Beach, CA, for the purchase of compressed natural gas, by increasing the contract amount by $180,000, for a revised total amount not to exceed of $280,000, and extend the term to
January 31, 2020. (Citywide)
DISCUSSION
On May 16, 2006, the City Council awarded a contract to Clean Energy Fuels Corporation (Clean Energy), to operate the compressed natural gas (CNG) fuel station at 2400 E. Spring Street. As part of that contract, the City received a price break for CNG fuel. To ensure continuity of service, interim Contract No. 3182200099, in the amount of $100,000, was issued pursuant to the City purchasing guidelines. The interim contract is set to expire on June 30, 2019. The authorized amount under the current terms and conditions of the contract has been exhausted.
City Council approval is requested to increase the interim contract with Clean Energy by $180,000, for a total amount not to exceed of $280,000, and to extend the term to January 31, 2020. This amendment will allow for the continuation of service providing fuel to the City’s 135 vehicles that use CNG fuel. A Request for Proposals (RFP) was conducted for the upgrade of the CNG station facilities and for daily operations. The long-term contract is being negotiated and will include new pricing for CNG fuel. The Fleet Services Bureau will utilize the new Clean Energy contract with the Energy Resources Department once it is fully-executed.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on June 13, 2019, Purchasing Agent Tara Yeats on June 6, 2019, and by Budget Management Officer Rhutu Amin Gharib on June 14, 2019.
TIMING CONSIDERATIONS
City Council action is requested on July 2, 2019, to allow for uninterrupted and timely purchasing of CNG fuel until long-term contracts are executed.
FISCAL IMPACT
The requested act...
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