TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35480 with Clean Energy Fuels, Inc., of Newport Beach, CA, for the purchase of renewable compressed natural gas (CNG), for use in City of Long Beach (City) vehicles and equipment, to increase annual contract amount by $500,000, authorize a 15 percent contingency of $130,500, for a new total annual amount not to exceed $1,000,500, for the current contract term and for the remaining five contract renewals ending on February 13, 2030; and
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $500,000, offset by funds available generated by revenue received through the Fleet Memorandum of Understanding. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 35480 with Clean Energy Fuels, Inc. (Clean Energy), for the purchase of renewable CNG, for use in City vehicles and equipment. There are currently 338 vehicles in the City fleet that use CNG fuel. Some of the 89 Refuse trucks and street sweepers fuel at the time-fill CNG station located at the Temple/Willow Fleet Services facility. The remaining CNG vehicles mainly fuel at the Long Beach Utilities Department Station location.
The existing contract was awarded by the City Council in November 2019 for the operation and maintenance of a compressed natural gas fueling station and the purchase of renewable CNG for a period of ten years. The City is currently in the fourth year of the contract for CNG retail fuel. Fleet uses approximately 196,900 gallons of CNG fuel to support operation of the City's CNG fleet each year.
It was anticipated at the time of the RFP that annual costs for CNG fuel would be less than $425,500, including contingency. However, since execution of the contract, the natural gas industry experienced global and regional imbalances that rapidly escalated fuel prices throughout the industry. The cost of CNG r...
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