HomeMy WebLinkAbout2026-04-14 - AGENDA REPORTS - HTEC HYDROGEN REFUELING STATION CONTR AMENDAgenda Item• 12
CITY OF SANTA CLARITA
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AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: BUS HYDROGEN REFUELING STATION CONSULTING AND
PROJECT MANAGEMENT SERVICES CONTRACT AMENDMENT
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
Amend the existing contract with Hydrogen Technology & Energy Corporation (HTEC) for
Bus Hydrogen Refueling Station consulting and project management services to increase
expenditure authority in the amount of $231,684, plus a 15 percent contingency of $34,753,
for a total increase of $266,437, for a total not to exceed amount of $748,847, and extend the
contract term with HTEC through final acceptance of the hydrogen production and fuel
station currently under construction.
2. Appropriate one-time funds in the amount of $266,437 to Transit Capital Contractual
Services Expenditure Account (7003702-516101), and increase Miscellaneous Federal
Grants Revenue Account (700-442409) by $266,437.
3. Authorize the City Manager or designee to execute all contracts and associated documents,
subject to City Attorney approval.
BACKGROUND
In December 2018, the California Air Resources Board adopted the Innovative Clean Transit
(ICT) regulation. The ICT regulation requires all public transit agencies to transition to a 100
percent zero -emission bus fleet by 2040. Beginning in 2029, all new bus purchases by transit
agencies must be zero -emission buses. The ICT regulation applies to all transit agencies that
own, operate, or lease buses with a gross vehicle weight rating greater than 14,000 pounds and
includes standard, articulated, over -the -road, double-decker, and cutaway buses.
In preparation for this transition, staff determined that hydrogen fuel cell buses are the best
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option currently available to meet the needs of the City of Santa Clarita (City). This
determination was based on range, need for additional infrastructure, and long-term operating
costs.
At the December 14, 2021, City Council meeting, following a Request for Proposals process,
City Council awarded a contract to Hydrogen Technology & Energy Corporation (HTEC),
formerly Zen and the Art of Clean Energy Solutions, Inc., to provide expertise in hydrogen
infrastructure and professional services in support of the Transit Hydrogen Fueling
Infrastructure, Project F1026. Hydrogen Technology & Energy Corporation and its
subcontractor, The LeFlore Group, have continued to provide the City with crucial assistance in
support of this project.
On March 28, 2023, the City Council awarded a design -build contract to Trillium Investments
LLC for the design and construction of a hydrogen production and fueling station at the Transit
Maintenance Facility.
Due to unforeseen delays with the project, City staff have identified a need for HTEC to provide
additional specialized services. To support these efforts, staff is requesting an extension of the
HTEC contract and an increase of $231,684, plus a 15 percent contingency of $34,753, for a total
of $266,437, bringing the revised contract total not to exceed $748,847.
The proposed amendment expands HTEC's scope to include enhanced project management, plan
validation reviews, active construction monitoring and independent reporting, and specialized
hydrogen technical and safety oversight. It also provides comprehensive support during
commissioning and turnover, including review and oversight of testing, performance validation,
and handover documentation, to ensure the station is delivered safely, meets all operational
requirements, and is fully prepared for long-term use. The requested contingency would cover
the cost of additional unforeseen delays.
Staff continues to analyze Trillium's request for a contract time extension. To the extent that it is
determined that some or all of the delays were caused by circumstances within Trillium's
control, and a time extension is not warranted, the City may be entitled to reimbursement from
Trillium for the additional cost of administering the contract during the inexcusable delay period.
The Trillium contract provides that liquidated damages accrue daily for delays beyond the
contractual substantial completion date, up to a capped amount of approximately $959,000.
The hydrogen production and fueling station is now scheduled for substantial completion in fall
2026, with project closeout at the end of the year. Amending the contract with HTEC will ensure
that the City has continual project management and hydrogen expertise support throughout the
life of the project.
ALTERNATIVE ACTION
Other action as determined by the City Council.
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FISCAL IMPACT
Upon approval of the recommended action, budget for the Transit Capital Contractual Services
Expenditure Account (7003702-516101) will increase by $266,437 and Miscellaneous Federal
Grants Revenue Account (700-442409) will increase by $266,437.
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