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CC - Approval of a Five-Year Professional Services Agreement with Natural Gas Systems, Inc. for the Maintenance and Repair of the Compressed Natural Gas Refueling Station in an Amount Not-to-Exceed $224,068.00.
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Contact Person/Dept: Paul Condran/Transportation
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/10/15)
Department Approval: Art Ida, Director of Transportation (09/03/15)
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RECOMMENDATION
Staff recommends the City Council award a five-year professional services agreement with Natural Gas Systems, Inc. for the ongoing maintenance and repair of the Compressed Natural Gas (CNG) Refueling Station located at the Culver City Transportation Facility, in an amount not to exceed $224,068.00.
BACKGROUND
Since 1997, the City of Culver City has owned and operated its own Compressed Natural Gas (CNG) Refueling Station. The Station serves more than 100 vehicles operated by City staff and the Culver City Unified School District. Today, CNG accounts for more than 80% of the City’s total dispensed fuel.
The City’s CNG Refueling Station is a very sophisticated, maintenance-intensive system, and the skills needed to perform maintenance and repairs are very specialized. Equipment Maintenance & Fleet Services Division staff has determined that the most cost-effective way to ensure the reliability of the CNG Refueling Station is to enter into a contract with a firm specializing in this area.
In March 2001, the City Council authorized a three-year agreement for maintenance and repair of the City’s CNG Refueling Station. That agreement, which included a three year extension option, terminated on May 30, 2007.
In May 2007, the Council authorized a five-year agreement for repair and maintenance of the City’s CNG Refueling Station. That agreement, which also included a three year extension option, terminated on May 30, 2015.
DISCUSSION
Although, pursuant to Culver City Municipal Code Section 3.07.085, professional and personal services (these particular services fall under both categories) are exempt from the formal competitive bidding process, the Transportation Department determined to issue a formal Request for Proposal on July 16, 2015, in order to ensure the City receives the highest quality service for the most reasonable price.
In addition to providing all labor associated with Preventative Maintenance (PM) services, proposers were asked to submit hourly labor rates for non-scheduled, and emergency call-out services and repairs. Based upon the City’s CNG Refueling Station’s equipment history to date, Equipment Maintenance Division staff anticipates that as many as 60 hours of non-scheduled repairs per year may be required in addition to PM services.
The CNG Station is comprised of highly complex parts and materials, many of which are difficult to obtain without long lead times. The determination of which parts to purchase/stock will be made through consultation with the contractor and relying on staff’s experience. The contractor will perform all necessary parts research, requisitioning, stocking, and replenishing as necessary. Two (2) contractors responded with the following proposals:
Clean Energy
Monthly PM ($1,465.00 per month x 60 months) $ 87,900.00
Non-Scheduled Repairs (60 Hrs. @ $115.00/Hr. x 5 years) $ 34,500.00
20% Contingency for Unanticipated Repairs $ 6,900.00
PM/Repair Subtotal $ 129,300.00
Payment Discount (Not Offered) $ 0
Total $ 129,300.00
Natural Gas Systems
Monthly PM (Years 1-3: $1,510.00 per month x 36 months) $ 54,360.00
Monthly PM (Years 4-5: $1,585.00 per month x 24 months) $ 38,040.00
Non-Scheduled Repair Hours (60 Hrs. @ $95.00/Hr. x 5 years) $ 28,500.00
20% Contingency for Unanticipated Repairs $ 5,700.00
PM/Repair Subtotal $ 126,600.00
Payment Discount (2% if paid within 10 days of receipt) ($ 2,532.00)
Total $ 124,068.00
Staff reviewed both proposals, and found the proposal submitted by Natural Gas Systems to be the most responsive and complete. Staff’s confidence in the ability of Natural Gas Systems, Inc. to provide this service to the City is considerable.
FISCAL ANALYSIS
Funds for these services are included in the City Council Adopted Budget for Fiscal Year 2015/2016 (Transportation Account numbers 20370300.732120 and 20370200.619800). Should the City Council approve the proposed agreement, funding for the future years of the agreement will be included in future budget requests.
Based on historical analysis, the parts cost for a five-year agreement term is estimated to be $100,000. Staff also recommends that an additional 20% contingency be included to handle unanticipated repairs.
Summary total of anticipated expenses for a five-year agreement under these terms:
Total PM/Repair Expense, including Call-Out Repairs: $124,068.00
Total Projected Parts Expense: $100,000.00
Total Contract Expense: $224,068.00
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1) Approve a five-year agreement (ending on June 30, 2020) with Natural Gas Systems, Inc. for the Maintenance and Repair of the Compressed Natural Gas (CNG) Refueling Station for a Total Amount Not to Exceed a Total of $224,068.00; and,
2) Authorize the City Attorney to review/prepare the necessary documents; and,
3) Authorize the City Manager to execute such documents on behalf of the City.