Approval is requested for the award of a contract to Clean Fuels, LLC, of Stockton to upgrade a compressed natural gas (CNG) fueling station for the Department of Public Works Fleet Maintenance Division.

Currently, the City’s compressed natural gas vehicles are refueled at a satellite CNG fuel station at the Corporation Yard. The system is composed of a CNG tube trailer, which is utilized for on-site storage, a sequencing and control panel, and a dispenser unit. This system requires that the trailer be filled off-site. Refilling requires shutting down the system and the additional expense of towing the trailer to a refill site and back again.

Fleet Maintenance staff determined that upgrading the fuel station by adding a compressor/control module (consisting of a compressor, dryer, and control package and the conversion of an existing air-driven booster system to a hydraulically-driven booster) would make it possible to refill the tube trailer on-site, using a dedicated CNG gas line.

Bid specifications for the upgrade were prepared by Public Works and Purchasing staff, and Invitation for Bids #F9903-62 was made available to six contractors known to specialize in CNG systems. One responsive bid in the amount of $115,828 (includes sales tax) was received from Clean Fuels, LLC.

In the event that a single bid is received, Section 2.08.120 of the Sunnyvale Municipal Code authorizes the Purchasing Officer to negotiate a more reasonable price with the bidder, subject to the awarding authority’s acceptance.

During this negotiation, Clean Fuels agreed to reduce its bid by $22,225, based upon the substitution of an air-driven booster for the hydraulically-driven booster specified in the bid document.

Staff has determined that this change in specifications would not significantly degrade system performance and recommends acceptance of this alternate bid.

Total cost to the City for the CNG fueling station upgrade will not exceed $91,769 (includes sales tax). Of that amount, $66,850 will be paid from a Santa Clara County Congestion Management Program (CMP) grant; and the balance will be paid through City matching funds available in Capital Project Account #801401-5135.

It is recommended that Council award a contract in an amount not to exceed $91,769 to Clean Fuels, LLC, of Stockton for the upgrade of a fueling station for compressed natural gas vehicles.

Prepared by:

Elaine Wesely, Purchasing Officer

Reviewed by:

Mary Bradley, Director of Finance

Reviewed by:

Marvin Rose, Director of Public Works

Approved by:

Robert S. LaSala, City Manager