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Agenda Report
July 15, 2024
TO: Honorable Mayor and City Council
FROM: Department of Public Works
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH
JAYCOX CONSTRUCTION CNG FOR INSPECTION, MAINTENANCE
REPAIR SERVICES FOR CNG FUELING STATION FOR AN AMOUNT
NOT-TO-EXCEED $1,380,005 FOR UP TO FIVE YEARS
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RECOMMENDATION:
It is recommended that the City Council:
1. Find that the action proposed herein is categorically exempt from environmental review pursuant to Title 14, Chapter 3, Article 19, Section 15301 - Existing Facilities, and there are no features that distinguish the project from others in the exempt classes, and therefore, there are no unusual circumstances; and
2. Authorize the City Manager to enter into a three-year contract with Jaycox Construction CNG (Jaycox CNG) in response to the specifications for Inspection, Maintenance and Repair for CNG Fueling Station, for an amount not-to-exceed $828,003, which includes the base contract amount of $720,003 and a contingency of $108,000 to provide for unanticipated or additional as needed parts and service needs, with the option of two additional one-year extensions, in the annual amount of $276,001 which includes the base extension contract of $240,001 and a contingency of $36,000 at the discretion of the City Manager, for a maximum total contract length of five years and a grand total contract amount of $1,380,005, whichever occurs first.
BACKGROUND:
The Department of Public Works, Building Systems and Fleet Management Division is responsible for the routine maintenance and emergency repair services for the City's compressed natural gas (CNG) fueling station at the City Yard. Due to the specialized nature of this work, it is performed by an outside contractor.
A Notice Inviting Bids for Inspection, Maintenance, and Repair Services for CNG Fueling Station was posted on OpenGov Procurement and published in the local newspaper on MEETING OF.7/15/2024AGENDA ITEM NO.1
Contract Award to Jaycox Construction CNG
February 1, 2024. The posting generated notices to all vendors who have previously registered with the City for this particular commodity class. Staff referenced a list of local vendors in the City's business license database as well as online web searches in an attempt to reach potential local vendors that can provide the scope of work detailed in the solicitation. No local vendors were found. A total of 13 vendors downloaded the specifications, none of which were local. Two bids were received electronically by the April 2, 2024 bid opening date.
Bid Results:
Per the bid specification, bidders were asked to provide hourly labor rates for onsite services including after hours and emergency callouts. Bidders were also asked to provide pricing for a list of typical CNG parts for repairs and maintenance.
The bid results are as follows:
BidderAmount($)
1. Jaycox Construction CNG, San Bernardino, CA
2. Clean Energy Fuels, Newport Beach, CA
$240,001
$245,440
The lowest and best bidder is Jaycox CNG. They have been operating in the CNG fueling industry for over 20 years specializing in providing CNG fueling solutions for residential and commercial users including other agencies and cities such as Caltrans, Manhattan Beach, Mission Viejo, China Hills, El Monte, Garden Grove, Beverly Hills, and Los Galinas.
The City utilized Jaycox CNG for the installation of the City's CNG compressor in 2007 and has not availed of their services since then.
The proposed contract with Jaycox CNG fully complies with the Competitive Bidding and Living Wage Ordinances. Staff recommends this vendor be awarded a three-year contract term with two optional one-year extension periods, renewable at the discretion of the City Manager.
The proposed contract with Jaycox CNG is as follows:
Year 1 to 3 Year 4 Optional Year 5 Optional
1st Extension 2nd Extension
Base Bid
Contingency Allowance
$720,003
$108.000
$240,001
$ 36.000
$240,001
$ 36.000
TOTAL
$1,200,005
$ 180.000
$828,003$276,001$276,001 $1,380,005
The 15% contingency allowance is to allow for unforeseen parts and service needs during the life of the contract.
Contract Award to Jaycox Construction CNG
COUNCIL POLICY CONSIDERATION:
This proposed contract supports the City Council's strategic goal to improve, maintain, and enhance public facilities and infrastructure.
ENVIRONMENTAL IMPACT:
This action is categorically exempt in accordance with State CEQA Guidelines under Title 14, Chapter 3, Article 19, Section 15301 for repair and maintenance of existing facilities involving negligible or no expansion of existing use.
FISCAL IMPACT:
The total cost of this contract is $1,380,005. Funding for this action will be addressed by the utilization of existing budgeted appropriations in the Fleet Maintenance and Repair Fund (511). There is no impact to the General Fund as a result of this action.
Respectfully submitted,
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KRIS MARKARIAN, P.E.
Acting Director of Public Works
Prepared by:
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Grace Wu
Public Works Administrator BSFMD
Approved by:
MIGUe-P^tARQUEZ
City Manager