200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: DECEMBER 20, 2022
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID FOR THE PURCHASE OF
COMPRESSED NATURAL GAS FROM SERVICE STATION
SITES
ATTACHMENT (Y/N): NO ITEM # 15
RECOMMENDATION:
That the City Council, by Motion, accept the bid from Trillium USA Company, LLC, in the amount of $55,298 plus applicable taxes, for the purchase of Compressed Natural Gas (CNG) fuel from service stations, for a one-year period with up to four one-year optional renewals; and authorize the Purchasing Agent to execute the renewal options, all in accordance with Bid #9624.
DISCUSSION:
Purchasing solicited bids from known companies and posted the bid on the City’s bid portal. Sealed bids were received by 2:00 p.m., November 10, 2022 from the following companies and were publicly opened immediately thereafter.
Bidder Total Bid
Clean Energy $ 49,400.00*
Newport Beach, California
Trillium USA Company, LLC $ 55,298.00**
Houston, Texas
* Bidder found non-responsive.
** Bid total corrected to factor in the given price for the cost of fuel.
The bid was based on providing as-needed compressed natural gas (CNG) from fuel sites within Anaheim for the City’s fleet of 43 compressed natural gas-powered vehicles, which include street sweepers, sewer trucks, dump trucks, and passenger cars. Bidders were asked to provide the cost of supplying CNG fuel based on the City’s projected usage, a markup for overhead, as well as a cost for gas taxes and fees (not including sales tax).
Acceptance of Bid for Purchase of Compressed Natural Gas Fuel December 20, 2022
The City fuels its CNG vehicles and equipment primarily through the City’s own fueling site located at the Public Works yard, however, having access to CNG fueling stations at offsite locations allows drivers in remote areas of the City to obtain fuel while in the field, thus reducing the number of trips to the City yard to refuel.
The term of the agreement will be for a one-year base period with up to four one-year optional renewals. To lock in future year overhead cost increases, bidders were asked to provide future optional year renewal mark-up costs. Pricing for CNG fuel will fluctuate based on the Natural Gas Price Index. There is no guaranteed or implied commitment to purchase a specific quantity for the duration of the agreement.
IMPACT ON BUDGET:
Sufficient funds are available in the Public Works Department’s Fiscal Year 2022/23 Motorized Equipment Fund budget. Funding for subsequent years will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Rudy Emami
Purchasing Agent Public Works Director