HomeMy WebLinkAbout2020-08-25 - AGENDA REPORTS - CONTR AMEND FOR THE OPERATION AND MAINT OF THE CIT (2)O
Agenda Item: 6
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CITY OF SANTA CLARITA AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:1
DATE: August 25, 2020
SUBJECT: CONTRACT AMENDMENT FOR THE OPERATION AND
MAINTENANCE OF THE CITY'S CNG FUELING STATIONS
DEPARTMENT: Neighborhood Services
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
1. Waive the bid process and amend the City's existing contract with Clean Energy to provide a
term extension of 22-months, with the option of two one-year renewals; increase the scope to
include the fueling station at City Hall; and, increase the expenditure authority by $780,000,
plus a contingency of $20,000, for a total contract amount not to exceed $1,762,235.
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney
approval.
BACKGROUND
In 2005, the City of Santa Clarita (City) entered into an agreement with Clean Energy for the
operation and maintenance of the City's Transit and public compressed natural gas (CNG)
fueling stations. The original agreement was for 10 years and included five one-year renewal
options. To date, the City has exercised all of the authorized extensions.
The current contract with Clean Energy encompasses the fueling equipment at the Transit
Maintenance Facility, including the public fueling station, and the Public Works Corporate Yard.
The requested contract amendment will add the fueling equipment at City Hall to Clean Energy's
maintenance inventory.
To comply with the Innovative Clean Transit (ICT) regulation, Santa Clarita Transit is required
to operate a 100 percent zero -emission bus (ZEB) fleet by 2040. This will entail a gradual
transition to a hydrogen powered fleet, pursuant to the Santa Clarita Transit Zero Emission Bus
Fleet Transition Plan adopted by the City Council on July 14, 2020.
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As the City transitions its fleet, CNG fueling stations will continue to operate, not only to fuel
existing CNG vehicles, but also to provide power to the planned reformer system which will
allow the City to produce its own hydrogen for the ZEB fleet.
Staff is requesting approval to continue contracting with Clean Energy through June 30, 2022. In
anticipation of the first delivery of hydrogen fuel cell buses in 2022 and installation of
supporting infrastructure, staff plans to conduct a competitive bidding process in late 2021 for
the operation and maintenance of both CNG and hydrogen fueling systems.
Sectionl, Item II.B of the City's purchasing policy allows the City Manager, with the approval of
City Council, to waive any part of the City's purchasing policy. By waiving the procurement
process and amending the existing contract with Clean Energy, it eliminates the need to dedicate
hundreds of staff hours to the procurement process that will have to be repeated in the next 15
months. It would also avoid any start-up or transitional costs associated with selecting a new
contractor for a short (22-month) contract term.
It is expected that the City will see considerable cost savings by combining the two fueling
systems into one contract. The recommended action additionally includes two one-year
extensions, in case the addition of hydrogen fueling infrastructure is delayed.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
Adequate funding is available in the approved budget for the Public Works Corporate Yard and
City Hall CNG fueling location. Funding for the maintenance and operation of the Transit
Maintenance Facility (TMF) and public CNG fueling locations is included in Expenditure
Account 12401-5161.030 and does not impact the General Fund. Additionally, all royalties
generated under this agreement would be used to offset the operating and maintenance costs for
the public and TMF stations.
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