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HomeMy WebLinkAbout2004-01-13 - AGENDA REPORTS - TMF AWARD GAS FUELING STATION (2)Agenda Item: — 57 CITY OF SANTA CLARITA AGENDA REPORT l CONSENT CALENDAR City Manager Approval: Item to be presented by: Chris Daste / Robej ewman DATE: January 13, 2004 SUBJECT: TRANSIT MAINTENANCE FACILITY, PROJECT NO. F0003 — AWARD THE DESIGN -BUILD, OPERATION, AND MAINTENANCE CONTRACT FOR THE SANTA CLARTTA TRANSIT COMPRESSED NATURAL GAS (CNG) FUELING STATION DEPARTMENT: Transportation and Engineering Services RECOMMENDED ACTION City Council award the design -build, operation, and maintenance contract for the compressed natural gas fueling station at the Transit Maintenance Facility, Project No. F0003, to Clean Energy Fuels Corporation in the amount of $3,635,473.00, plus a 10 percent contingency in the amount of $363,547.00; authorize staff to pursue lease financing options and return for City Council approval of the lease; and authorize the City Manager or designee to negotiate and execute all documents, subject to City Attorney approval. BACKGROUND The proposed compressed natural gas (CNG) fueling station is to be constructed in conjunction with the Transit Maintenance Facility (TMF) project to meet the new alternative fuel regulations for transit operations. The proposed CNG fueling station project will include the design and construction, along with the operation and maintenance of a CNG fueling station for the Santa Clarita Transit fleet and a carded -access CNG fueling station for public use. The transit bus fueling station will be designed and constructed based on growth projections of the City's transit system over the next 20 years. The carded -access CNG station will be made available to the public 7 days a week, 24 hours a day. On July I, 2001, the South Coast Air Quality Management District (AQMD) adopted Rule 1192 which requires that all new transit urban bus procurements be alternative -fueled vehicles. On May 27, 2003, City Council authorized the purchase of CNG -powered vehicles to replace old diesel buses and expand the fleet. These new CNG buses are planned for delivery concurrent with the completion of the TMF. On April 8, 2003, City Council authorized a work order between the City and Southern California Gas Company for installation of a high-pressure gas line required to serve the CNG station at the TMF site. On July 8, 2003, City Council made the finding that the use of the design -build process for the CNG fueling station will reduce project costs, expedite completion, and provide design features not achievable through the design -bid -build method. As part of the Transit Maintenance Facility design team, the City hired Marathon Technical Services, to serve as the City's alternative fuels consultant and prepare design -build specifications for a CNG facility that will perform to meet the City Transit System's current and long-term operational needs. To guarantee reliability for the buses and the public vehicles to be served by the CNG facilities 24 hours a day, 7 days a week, the City ensured that the CNG operating system specified would be of conservative design and include mechanical redundancies in the system. Based on performance specifications, on August 15, 2003, the City issued a Request for Proposals (RFP) for the design -build, operation, and maintenance of the CNG fueling station for Santa Clarita Transit and the public. An evaluation panel was formed to review the proposals and conduct interviews, consisting of City staff from Transit, Facilities, and the Capital Improvement Project divisions, as well as representatives from the Metropolitan Transit Authority (MTA), ATC (the City's Transit Operator), and Marathon Technical Services (Alternative Fuels Consultant). Given the limited expertise available in this fairly new and highly technical industry, the City was happy to receive proposals from two (2) reputable companies. The evaluation panel received and evaluated two (2) proposals, and consistent with the RFP guidelines, pre -qualified both proposers noted below: Company Location Clean Energy Fuels Corp. Seal Beach, California Trillium, USA Salt Lake City, Utah The Request for Proposals stated that the project would be awarded on the basis of the lowest priced technically qualified proposal. The price used for the evaluation was based on each Proposer's cost breakdown for both the design -build phase and the operation and maintenance phase over a 10 -year period. The award is based on the lowest overall lifecycle cost as calculated by the City. Based on the technical qualifications, methodology of alternative design options on the proposed project, and the calculated overall life cycle costs to the City, staff is recommending to award the design -build, operation, and maintenance contract to Clean Energy Fuels Corporation. As part of the proposal evaluation process, the City contacted and obtained satisfactory references from past and current clients serviced by Clean Energy Fuels for similar comparable work. Noted are Southern California clients serviced by Clean Energy Fuels: • San Diego Metropolitan Transportation Development Board (MTDB), which operates San Diego Transit; • Sunline Transit, which operates bus services throughout the Palm Springs area; • Foothill Transit, which operates bus services throughout the San Gabriel Valley; • City of Burbank, which operates a public access CNG station including City vehicle fueling; • Los Angeles Airports, which fuels various CNG vehicles at a Clean Energy cardlock facility. Current financial projections of the transit funds indicate sufficient funding to cover the cost of the CNG station. However, using these funds would bring reserves below desired levels. It is staffs belief that a lease financing would be the best method to pay for this portion of the TMF. Staff will return to City Council prior to finalizing any lease. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT One million dollars ($1,000,000) in transit funds will be used to make cash payments, with the balance to be financed through a lease option. ATTACHMENTS Exhibit "A" - Location Map Exhibit "A' — Location Map Santa Clarita Transit Compressed Natural Gas (CNG) Fueling Station