HomeMy WebLinkAbout11 - Compressed Natural Gas (CNG) Fueling Facilities — Rejection of All BidsQ �EwPpRT
CITY OF
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<,FORN'P City Council Staff Report
October 27, 2020
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Tom Sandefur, Assistant City Engineer,
tsandefur@newportbeachca.gov
PHONE: 949-644-3321
TITLE: Compressed Natural Gas (CNG) Fueling Facilities — Rejection of All
Bids for Contract No. 7876-1 (20F14)
ABSTRACT -
The City recently advertised a project for construction that would make capacity
improvements to the existing compressed natural gas (CNG) vehicle fueling systems at
the City's Corporation Yard and Utility Yard. The received bids were well in excess of the
Engineers Estimate and staff expectations. In reviewing and discussing our CNG fueling
needs further with specialty CNG vendors/contractors, as well as our entire fleet fueling
systems, staff believes the best option is to request City Council reject all bids and
reevaluate the City's overall current and future fleet fueling needs and necessary systems
modifications.
RECOMMENDATION:
Reject all bids received for Contract No. 7876-1.
FUNDING REQUIREMENTS:
No fiscal impact.
DISCUSSION -
The City is subject to clean air regulations that require the purchase of alternative fuel
vehicles. The City fleet currently has 13 CNG powered vehicles. Future replacement
vehicle acquisitions will bring the total CNG fleet to approximately 19 vehicles.
City fleet CNG fueling occurs at the public CNG station located at the City's Corporation
Yard. The single, dual -hose pump is operated and maintained through an agreement with
an outside vendor.
This pump is publicly accessible and is utilized by a wide range of outside vehicles
including trash trucks, buses, street sweepers, and private CNG vehicles. These outside
uses, in conjunction with the expanding City fleet, lead to back-ups as vehicles wait to
use the pumps or for the system to recharge after being depleted.
Compressed Natural Gas (CNG) Fueling Facilities — Rejection of All Bids for
Contract No. 7876-1 (20F14)
October 27, 2020
Page 2
In an effort to reduce wait times and gain operational efficiency, staff prepared a project
that would install low pressure "time -fill" pumps in the Corporation Yard and Utility Yard
that would allow City fleet vehicles to refuel overnight and make the fast -fill pump more
available.
At 10 a.m. on September 2, 2020, the City Clerk opened and read the following bids for
this project:
BIDDER
TOTAL BID AMOUNT
Low Clean Energy
$ 938,687.18*
2nd Amtek Construction
$ 1,021,420.00
3rd EFS West
$ 1,613,400.00
*Clean Energy only Bid the Corporation Yard facility
A review of the low bid, by Clean Energy, revealed that the bid was solely for the
Corporation Yard and no bid was submitted for the Utility Yard station. The large
difference in bid totals raises concerns on whether all the contractors had scoped the
project the same way.
A number of factors point towards the need to reconsider and rework this project to allow
for a better integrated approach to the City's fleet fueling system. These include:
• Up to six additional City CNG vehicles will be coming online in the next year,
bringing the City's CNG fleet total to 19 vehicles.
• The permit for the existing single -walled unleaded fuel tank at the Corporation Yard
expires in 2024 and will require replacement of that tank, and disruption to both
the unleaded gasoline pumps and the adjacent CNG fast -fill station.
• The expiration of the current agreement with Clean Energy in 2023 to operate the
existing public CNG fast -fill station at the Corporation Yard.
• Potential reconfiguration or reconstruction of some Corporation Yard facility
functions (vehicle washing station, restroom, contractor parking).
Based on this myriad of factors it is recommended that staff reevaluate the scope and
bring a redesigned project back to City Council in the future.
ENVIRONMENTAL REVIEW:
Environmental review will occur as part of the redesign of the project and will be presented
to Council at that time.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Location Map
11-2
ATTACHMENT �
Existing Gasoline
and CNG Pumps
- �- Existing Diesel.
' Pumps
2T- _
_ � •iT I 1
a -L. i _ 4 Proposed Time -fill
location
4A 1111.91
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CITY CORPORATION YARD
CNG FUELING SYSTEM
LOCATION MAP
L_
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-7876-1
09/24/20