City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council award a contract to Natural Gas Systems, Inc.
(NGS) for ongoing Maintenance and Repair of the City’s Compressed Natural Gas
(CNG) Refueling Station, in an amount not to exceed $367,312 for a total contract
term of five (5) years with three (3) one year options.
BACKGROUND:
In March 2001, the City Council authorized a three-year contract with NGS for
preventative maintenance and repair of the City’s compressed natural gas refueling
station, with a contract extension option of three years. That contract, which
includes the exercised option, will terminate on May 30, 2007.
In August 2004, the City Council authorized a separate three-year contract with NGS
for major unforeseen repairs to the City’s compressed natural gas (CNG) refueling
station in an amount not to exceed $50,000 per year. That contract will terminate in
September 2007.
The CNG Refueling Station is currently undergoing an expansion, with the addition
of one compressor and electronic programmable logic controls (PLC), plus an on-
site stand-by generator. The recently issued Scope of Work for the maintenance
and repair services has taken into account the increased magnitude and complexity
of these systems.
Meeting Date: 05/14/2007 Item Number: C-5
AGENDA ITEM: Award of a Contract to Natural Gas Systems, Inc. (NGS) for
Maintenance and Repair Services for the Compressed Natural Gas Refueling
Station
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: []
Public Notification:
Master Notification List via email on 05/9/07; Natural Gas Systems, Inc. on 5/10/07.
RFP was published in Passenger Transport on 03-26-07 and the Culver City News on
03-22-07.
Department Approval:
Steve Cunningham (04/24/2007)
City Attorney Approval:
Carol Schwab (by H. Iker) (05/02/07)
City Controller Approval:
Marlee Chang (05/09/07)
City Manager Approval:
Jerry B. Fulwood (05/09/07) City of Culver City, California
City Council Agenda Item Report
DISCUSSION:
A Request for Proposal was released as Bid Number 1349 on March 22, 2007 and
closed on April 5, 2007. Only one contractor submitted a bid and their estimated
costs are as follows:
Natural Gas Systems, Inc.
23016 Lake Forest Dr.
Suite A-118
Laguna Hills, CA 92653
Per the requirements of the RFP, rates for services were submitted as follows:
Flat Hrly Rate, Hrly Rate,
Monthly Non-Sched. Emergency Parts Hrly
Term Fee (PM) Maintenance Call-Out Markup Chg. Travel
YEAR 1: $ 1,081.00 $ 90.00 $ 135.00 15% $ 0.00
M-Sat to 9PM
$ 180.00
M-Sat after 9PM
& all day Sun/Hol
YEARS 2-3: $ 1,190.00 $ 90.00 $ 135.00 15% $ 0.00
M-Sat to 9PM
$ 180.00
M-Sat after 9PM
& all day Sun/Hol
YEARS 4-5: $ 1,310.00 $ 90.00 $ 135.00 15% $ 0.00
M-Sat to 9PM
$ 180.00
M-Sat after 9PM
& all day Sun/Hol
OPTIONAL
YEARS 6-8: $ 1,440.00 $ 100.00 $ 150.00 15% $ 0.00
M-Sat to 9PM
$ 200.00
M-Sat after 9PM & all day Sun/Hol
NGS will provide all labor associated with preventive maintenance (PM) services, as
well as emergency call-out services and repairs. Based upon the CNG Station
equipment history to date, Equipment Maintenance Division staff anticipates as
many as 100 hours of emergency call-out services per year may be required (in
addition to PM). For Years 1 through 5, an average hourly call-out rate of $112.50
(average of regular hourly rate & emergency call-out rate) was used to calculate
anticipated expenses of $11,250 per year for non-scheduled repairs, given that
some will occur during regular business hours, and some will occur after hours.
City of Culver City, California
City Council Agenda Item Report
An additional 20% contingency ($2,250) is being added to cover unanticipated
problems. Therefore, total annual expenses for PM and Non-Scheduled Repairs are
estimated as follows:
YEAR 1:
Monthly PM $1,081 x 12 months $ 12,972.00
Non-Scheduled Repairs (100 Hrs. @ $112.50) $ 11,250.00
20% (of Non-Scheduled Repairs) Contingency $ 2,250.00
Total First Year PM/Repair Expenses: $ 26,472.00
YEARS 2-3:
Total Second & Third Year PM/Repair Expenses: $ 55,560.00
YEARS 4-5:
Total Fourth & Fifth Year PM/Repair Expenses: $ 58,440.00
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 our
experience. The contractor will perform all necessary parts research, requisitioning,
stocking, and replenishing as necessary. All parts and materials purchased are
stored in a secure area in the Transportation Facility. Based on historical analysis
and adjusted to include the additional compressor, the parts cost for a five-year
contract term is estimated to be $100,000.
Summary total of anticipated expenses for a five-year contract under these terms:
Total PM/Repair Expense, including Call-Out Repairs: $140,472.00
Total Projected Parts Expense: $100,000.00
Total Contract Expense: $240,472.00
OPTIONAL YEARS; 6-7-8:
Total PM/Repair and Parts Expenses for three years: $126,840.00
(Annual Cost - $42,280)
While only one bid was received, Staff’s confidence in the ability of NGS to provide
this service to the City is considerable. Natural Gas Systems, Inc.:
• Has provided a history of highly competent, proactive specialized CNG station-
related services to the City for over six years;
City of Culver City, California
City Council Agenda Item Report
• Has been highly responsive, proactive, diligent and company technicians are
outstanding;
• Has provided staff with realistic cost projections for major repairs that may be
incurred in the future, thereby avoiding, to the extent possible, unscheduled
breakdowns;
• Is very familiar with the City’s refueling station components and service history.
FISCAL IMPACT:
Funds for these services are included in the Transportation Department’s current
fiscal year budget, and have been projected for subsequent fiscal years through
2012.
ATTACHMENTS:
None.
MOTION:
That the City Council:
1. Authorize a contract with Natural Gas Systems, Inc. (NGS) for preventative
maintenance and repair of the City’s compressed natural gas refueling station
for a total amount not to exceed a total of $367,312 for a contract term of five
(5) years plus three (3) one year options; and
2. Authorize the City Attorney’s Office to prepare the appropriate contract
documents; and
3. Authorize the City Manager to execute the contract on behalf of the City.