ADMINISTRATIVE REPORT
MEETING DATE: December 17, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: December 1, 2025
SUBJECT: Amendment No. 3 to Agreement No. 2022-277 with Applied LNG Technologies, LLC. (extend the term by one year) to continue the supply of LNG Fuel.
RECOMMENDATION:
Staff recommend approval of amendment.
BACKGROUND:
On December 14, 2022, the City Council approved the annual contract for the supply of LNG fuel to Applied LNG Technologies, LLC, in the amount of $952,393.75; renewable annually thereafter for four consecutive one-year periods.
The purpose of this contract is to supply LNG Fuel for use in City vehicles and equipment. Fueling stations are located at two locations, which are the City Corporation Yard located at 4101 Truxtun Avenue and the Mt. Vernon Green Waste Recycling and Composting Facility located at 2601 South Mount Vernon Avenue.
Per the terms of the contract, amendments increasing the contract and/or extending the contract has been approved as follows:
• Amendment 1 approved December 13, 2023; increased compensation by $952,000 and extended term by one year to December 31, 2024.
• Amendment 2 approved December 18, 2024; increased compensation by $900,000 and extended term by one year to December 31,2025.
Currently there is approximately $890,000 available on this contract. If approved, Amendment No. 3 will extend the term by one year to allow the City to continue to meet the demand for LNG fuel.
FISCAL IMPACT:
Funds are budgeted in the Equipment Management Fund for this contract.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Amendment No. 3