TITLE
Recommendation to adopt Specifications No. RFP FS22-051 and award a contract to Integrated Cryogenic Solutions, LLC, of Escondido, CA, for decommissioning, tank removal and site restoration of the Liquefied Natural Gas (LNG) station located at the Fleet Services Bureau facility site, in a total amount not to exceed $403,337; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments; and
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $403,337, offset by funds available generated by revenue collected from user departments through the Fleet Memorandum of Understanding. (District 4)
DISCUSSION
City Council approval is requested to enter into a contract with Integrated Cryogenic Solutions, LLC, for LNG fuel site decommissioning, tank removal and site restoration. This fuel site is being decommissioned because the City of Long Beach (City) is in the final stages of its LNG to Compressed Natural Gas (CNG) transition and there are few LNG assets remaining in its fleet. CNG is cheaper, more environmentally friendly, and CNG vehicles are more widely available compared to LNG-fueled units. It is more economical to provide access to commercial LNG fueling than for the Fleet Services Bureau to operate its own dedicated site. The remaining 22 LNG vehicles, most of which are due for replacement, will be provided with fuel cards to use nearby Clean Energy LNG fuel sites.
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on April 28, 2022, and 40 potential proposers specializing in natural gas fuel station construction and removal were notified of the RFP opportunity. Of those proposers, 40 downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 39 local, minority-owned, and women-owned business groups. There was one proposal received on June 6, 2022. The sole proposer was not a Minority-owned Business Enterprise (MBE), Women-owned Business Enterprise (WBE), certified Small Business Enterprise (SBE), or Long Beach vendor (Local). The selection committee determined that Integrated Cryogenic Solutions, LLC of Escondido, CA, was the best qualified firm to provide the services.
The Review Committee checked the vendor’s references and selected them for this project based on their demonstrated competence, expertise and availability of key personnel, financial stability, and reasonableness of cost.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the procurement database to download RFP specifications. Through outreach, two Long Beach vendors were notified to submit proposals, of which two downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Anita Lakhani and Revenue Management Officer Geraldine Alejo on September 13, 2022, and by Purchasing Agent Michelle Wilson on September 7, 2022.
SUSTAINABILITY
The vendor will comply with all local, State and federal regulations for fuel site decommissioning, tank removal and site restoration. In addition, all construction equipment used will be in compliance with California Air Resources Board, and Air Quality District regulations and rules for gas and particulate emissions.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP FS22-051 and award a contract concurrently is requested on October 4, 2022 to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $403,337. An appropriation increase of $403,337 is requested in the Fleet Services Fund Group in the Financial Management Department, offset by funds available generated from revenue collected from departments through the Fleet Memorandum of Understanding (MOU). This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with City Council priorities. This recommendation will provide continued support to our local economy by assisting in the preservation of employment for 15 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER