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: MAY 7, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: RATIFY INCREASE TO AGREEMENT AMOUNT FOR
COMPRESSED NATURAL GAS (CNG) FUEL
ATTACHMENT (Y/N): NO ITEM # 09
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve an increase to the current Master Agreement with Trillium USA Company, LLC for compressed natural gas (CNG) fuel, in the amount of $31,662 to an increased amount not-to-exceed $91,245, to ensure sufficient funds throughout the agreement term; and
2) Authorize the Purchasing Agent, or their designee, to execute documents, as necessary, related to the agreement.
DISCUSSION:
On August 29, 2023, the primary CNG fuel dispenser located at the Public Works Operations and Maintenance Division Fleet Maintenance Yard was damaged as the hose breakaway feature failed to activate when a vehicle drove away. A replacement dispenser is expected to be installed by May 2024. The secondary CNG fuel dispenser is currently operating at half capacity and has been awaiting backordered replacement parts for service since January 2024.
These incidents have led to an increased use of the Trillium agreement as CNG-based vehicles are fueling offsite frequently in order to ensure that daily operations are not affected.
The agreement is currently on year one of up to four one-year optional renewals. To date, approximately $48,151of the agreement’s not-to-exceed amount has been utilized and is set to expire on December 31, 2024. The increase would change the not-to-exceed amount from $59,583 to $91,245.
Based on the current usage of the agreement and anticipated repair date for the primary CNG fuel dispenser, the Operations and Maintenance Division is requesting that an additional $31,662 be added to the agreement to ensure the availability of adequate funds for the duration of the agreement term.
Ratify Increase to Agreement Amount for Compressed Natural Gas (CNG) Fuel May 7, 2024
IMPACT ON BUDGET:
Sufficient funds are available in the Public Works Department’s Fiscal Year 2023/2024 Motorized Equipment Fund Budget.
Respectfully submitted, Concurred by, Jered Rakosky Rudy Emami
Purchasing Agent Public Works Director