Title
CNG Fueling Station Inspection, Maintenance and Repair - Contract Recommendation (Ordinance S-46476)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Zeit Energy, LLC for compressed natural gas (CNG) fueling station inspections, maintenance, and repairs. This contract will have an aggregate amount of $750,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department is responsible for eight CNG compressors, four fast-fill dispensers and 286 time-fill (slow) dispensing stations. Due to the highly pressurized CNG systems, a third-party vendor is needed to inspect, maintain and repair this equipment. Zeit Energy will provide weekly, monthly and annual inspections to note the general condition of the stations and conduct any maintenance and repairs necessary to keep them up and running.
Procurement Information
Invitation for Bid (IFB) 20-FSD-039 was conducted in accordance to Administrative Regulation 3.10. The Public Works Department, Procurement Section, received two bids with Zeit Energy, LLC being deemed the lowest responsive and responsible bidder. Three groups are identified: Group I - Inspection and Maintenance; Group II - Repair Services; Group III - Sample Parts. The grand total of all groups was used for evaluation purposes.
Zeit Energy, LLC: $169,772.28
Clean Energy Fuels Corp.: $192,393.43
Contract Term
The initial one year contract term will begin on or about June 1, 2020, with four option years to be exercised in increments of up to one year, for a total contract term of five years.
Financial Impact
The aggregate amount is $750,000 over the life of the contract. Funds are available in the Public Works Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.