HomeMy WebLinkAboutStaff Report 263-06City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:JUNE 19, 2006 CMR:263:06
SUBJECT:APPROVAL OF A PURCHASE ORDER WITH ANGI INTERNATIONAL,
LLC IN THE AMOUNT OF $415,590 FOR THE PURCHASE OF
COMPRESSED NATURAL GAS (CNG) FUELING EQUIPMENT AND
APPROVAL OF A CHANGE IN SCOPE TO CAPITAL IMPROVEMENT
PROGRAM PROJECTS (CNG STATION GS-00011 AND CNG
SEQUENTIAL SLOW-FILL FUELING SYSTEM GS-03010) TO ALLOW
THE FUNDS FROM THOSE PROJECTS TO BE USED FOR THE
CONSTRUCTION OF A REPLACEMENT FAST-FILL CNG FUELING
FACILITY AT THE MUNICIPAL SERVICE CENTER
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the City Manager or his designee to execute a purchase order
with ANGI International, LLC in the amount of $415,590 for the purchase of
compressed natural gas (CNG) fueling equipment; and
Approve a change in scope to Capital Improvement Program (CIP) Projects GS-
00011 (Compressed Natural Gas Station) and GS-03010 (CNG Sequential Slow-Fill
Fueling System at the Municipal Service Center), to allow the funds fxom those
projects to be used for the construction of a replacement fast-fill CNG fueling facility
at the Mutticipal Service Center.
DISCUSSION
The Vehicle Replacement Fund and Gas Fund Capital Improvement Programs include projects
(VR-01001; GS-00011) which will replace the existing conventional and CNG automotive
fueling facilities located at the Municipal Services Center (MSC). The original intent of the
project funded by GS-00011 was to construct a public CNG fueling facility that could be used as
a backup to the City’s existing CNG facility. However, since the inception of this project, that
intent has been affected by two factors:
The City’s existing fast-fill CNG facility is undersized for the current demand.
The cost of conslructing a separate public CNG facility is unacceptably high and those
costs could never be recovered through retail charges.
Because of this, staff recommends that the funds available in GS-00011 be used to replace the
City’s existing fast-fill CNG facility. Once the existing facility has been replaced, it can be re-
utilized for public CNG fueling. This would fulfill the original intent of the project, and will
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satisfy the public-access requirement of a grant funding agreement that exists between the City
and the Valley Transit Authority.
The project funded by GS-03010 was for the construction of a slow-fill CNG station at the
MSC. "Slow-fill" allows overnight fueling of vehicles while they are parked, which greatly
reduces the time drivers spend at the pump. Since a CNG vehicle can take up to three times
longer to fill than an equivalent gasoline vehicle (depending on the size of the compressor), staff
felt that the slow-fill facility would improve driver productivity. However, recent improvements
in CNG fueling station design have lead to greatly reduced tank fill times, eliminating the need
for a slow-fill facility.
This request is for the purchase of equipment required for the construction of the new CNG
fueling facility. The equipment includes a high-pressure compressor, storage cascade, gas dryer,
system controls, and two fuel dispensers. The equipment will be installed by a contractor who
will be selected through a separate Invitation for Bid (IFB) process.
Summary of Bid Process
Bid Name/Number
Proposed Length of Project
Number of Bids Mailed to
Equipment Suppliers
Total Days to Respond to Bid
Pre-Bid Meeting?
Number of Company Attendees at
Pre-Bid Meeting
Number of Bids Received:
Bid Price Range
Compressed Natural Gas Fueling Equipment/RFQ 117029
N/A
5 --
No
N/A
3*
From a low of $415,590 to a high of $458,980
*Bid summary provided in Attachment B.
Staff has reviewed all bids submitted and recommends that the bid of $415,590 submitted by
ANGI International be accepted and that ANGI International be declared the lowest responsible
bidder.
RESOURCE IMPACT
Funds for this purchase are available in the Vehicle Replacement Fund and Gas Fund Capital
Improvement Program Budgets. The Gas Fund will recover its expenses through a revision to
Utility Rate Schedule G-10 - Compressed Natural Gas Service. Staff will be returning with a
rate schedule revision before the new station goes into service.
POLICY IMPLICATIONS
Authorization of this purchase order does not represent any change to the existing policy.
ENVIRONMENTAL REVIEW
Appropriate environmental review has been conducted as part of the design review process for
the MSC Integrated Fueling Facility project.
CMR:263:06 .....Page Z_of 3
ATTACHMENTS
Attachment A: Bid Summary
Attachment B: Cer~fication ofNondisc "nminafion
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
GLENN ROBERTS
Director of Public Works
/
/
EMII~ HARRISON
Assistant City Manager
CMR:263:06 Page 3 of 3
0 ~D.
ATTACHMENT A
ATTACHMENT B
CERTIFICATION OF NONDISCRIMINA~’ION
Project:COMPRESSED NATURAL GAS FUELING EQUIPMENT
FORM 410
Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Palo Alto in excess
of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in the performance of
this contract they will not discriminate in employment of any person because of race, skin color, gender, age,
religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height of such person; and further certify that they are in compliance with atl Federal, State and local
directives and executive orders regarding nondiscrimination in employment.
ANGI International 5-22-06Firm: DATE:
Title of Officer Signing: . Sales & Marketing Manager
Signature: ~.~~ ~, ,~.~,.~----~ Carol Harmon
CITY OF PALO ALTO - RFQ 117029 PAGE 1 OF 1