City Council Agenda Report
May 6, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: James C. Parker, Executive Director of Regional Transportation Theresa Clark, Transit Administration Officer
Miguel Garcia, Fleet Maintenance Manager
Janet Welde, Special Projects Coordinator
SUBJECT: AGREEMENT FOR OPERATION AND MAINTENANCE OF THE COMPRESSED
NATURAL GAS STATION
Background:
On September 3, 2013, the City Council approved an agreement with Clean Energy Fuels (Clean Energy) to construct a design-build Compressed Natural Gas (CNG) Vehicle Fueling Station that included Operation and Maintenance (O&M) services of the CNG station. The last term extension with Clean Energy for O&M services expires on June 30, 2025. Clean Energy has provided Norwalk Transit System (NTS) with reliable maintenance services for its CNG Station which support the CNG buses and Public Services CNG powered trucks. Therefore, to ensure service continuity and functionality of the CNG Station, NTS is seeking a sole source procurement agreement with Clean Energy for O&M services for five years which include comprehensive O&M services and maintenance of all related electrical systems, fuel hoses, gas monitoring system, etc. Clean Energy is proposing a monthly inspection fee of $3,359.79 and a per therm charge of $0.33594 for the first year with annual CPI increases of 3% for years two through five. The table below provides a financial breakdown:
City Council May 6, 2025
Agreement – O&M Services for CNG Station Page No. 2
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Clean Energy has designed and constructed numerous CNG fueling stations and currently provides maintenance to many CNG fueling stations including City of Gardena, City of Montebello, and Foothill Transit. Due to Clean Energy’s large installed base of these compressors, Clean Energy has an extensive supply of compressor parts as well as a vast knowledge of maintaining this equipment. This will ensure continuity to provide CNG fuel to the City’s CNG powered buses and trucks.
Fiscal Impact:
The cost of O&M services for the CNG station for year one is estimated to be approximately $169,654.38 and has been included in the proposed Fiscal Year 2025/26 Transportation Department budget. There is no impact to the General Fund.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommends City Council approve a five-year agreement, from June 1, 2025 through June 30, 2030 with Clean Energy Fuels for Operation and Maintenance services of the Compressed Natural Gas station with for a total contract value of $900,718.70; and authorize the City Manager to execute the contract and any amendments or extensions provided there is funding in the budget, and it is within the City Manager’s signing authority, on behalf of the City, in a form approved by the City Attorney.
Attachments:
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