RESOLUTION NO._______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING THE FOURTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF COMMERCE AND CLEAN ENERGY FUELS WHEREAS, on July 6, 2010, the City awarded a professional services agreement to Clean Energy to provide services related to supplying liquefied natural gas, operational services, training, and maintenance services for the City of Commerce liquefied natural gas and compressed natural gas (LNG/CNG) fueling station (“Master Agreement”); and WHEREAS, on December 4, 2012, Amendment #1 for the Clean Energy Agreement was submitted and approved; and WHEREAS, on August 27, 2019, Amendment #2 for the Clean Energy Agreement was submitted for approval; and WHEREAS, on April 7, 2020, Amendment #3 for the Clean Energy Agreement was submitted for approval; and WHEREAS, as part of Amendment #4, Clean Energy shall continue providing services related to supplying liquefied natural gas, operational services, training, and maintenance services for the City of Commerce's liquefied natural gas and compressed natural gas (LNG/CNG) fueling station at the following rate: $120 per hour (Monday-Friday, 8:00 am -5:00 pm) $185 per hour (all other times and days); and WHEREAS, while the City of Commerce Transit uses CNG fuel to power most of its fleet, it will generate royalty revenue from LNG and CNG purchases for all non-transit fueling transactions. The City’s current royalty payment is .40 for every Gasoline-Gallon-Equivalent (GGE) of outside fuel sale transactions; and
REVENUE ESTIMATES
Fiscal Year Royalty Revenue Amount
2026 .40 $2,300,000
2027 .40 $2,000,000
2028 .40 $2,000,000
Total $6,300,000
WHEREAS, it should be noted that the above estimates are based on historical data and usage. Royalty payments to the City are based on actual volume at the station and may fluctuate based on usage. As part of their scope of work, Clean Energy will continue managing all related administrative and regulatory requirements for CNG revenue credits and handle all compliance and reporting obligations on the City’s behalf.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The Fourth Amendment to the Professional Services Agreement between the City of Commerce and Clean Energy Fuels is hereby approved in a form approved by the city Attorney..
Section 3. The Mayor is hereby authorized to execute the Fourth Amendment and this Resolution for and on behalf of the City of Commerce.
Section 4. The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED, and ADOPTED this 9th day of September 2025.
Ivan Altamirano, Mayor
Attest:
Lena Shumway, City Clerk