City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: MARCH 22, 2022 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL
SUBJECT: PURCHASE OF REPLACEMENT COMPRESSED NATURAL GAS FUEL TANKS FROM NATIONAL CNG & FLEET SERVICES OF ONTARIO, CALIFORNIA IN THE AMOUNT OF $236,968.30 AND AUTHORIZE 15% CHANGE ORDER AUTHORITY FOR A TOTAL NOT TO EXCEED $272,513.55 ISSUE:
Approve the purchase of replacement compressed natural gas fuel tanks from National CNG & Fleet Services of Ontario, CA in the amount of $236,968.30 and authorize 15% change order authority, for a total amount not to exceed $272,513.55.
RECOMMENDATIONS:
That the City Council:
Approve the purchase of replacement compressed natural gas fuel tanks from National CNG & Fleet Services of Ontario, CA in the amount of $236,968.30; Authorize 15% change order authority up to $35,545.25 for material cost inflation for a total amount not to exceed $272,513.55; and Authorize the City Manager, or designee, to execute all documents necessary to effectuate this purchase including making minor and non-substantive changes.
BACKGROUND:
The General Services Fleet Division maintains a wide variety of alternative fuel vehicles, including Compressed Natural Gas (CNG) fueled refuse trucks, street sweepers, dump trucks, vactor trucks, and line trucks. Compared to vehicles fueled with conventional diesel and gasoline, natural gas utility vehicles produce significantly fewer emissions and are an important component of the City’s sustainability efforts. Additionally, the City of Riverside is subject to rules and regulations detailed in South Coast Air Quality Management District Rule 1196 which mandates the use of alterative fueled heavy-duty vehicles in a municipal fleet application.
The General Services Fleet Division performs the annual inspection and recertification of the City’s CNG fueled vehicles. CNG fuel tanks have a maximum service life of 15 years and cannot be recertified for use after the expiration date as labeled by the tank manufacturer. This leaves the city two options: Retire the vehicle(s) or replace expired CNG fuel tanks for vehicles which have both substantial service life remaining and are fiscally prudent candidates for retention as an alternative to replacement.
DISCUSSION:
After reviewing the annual CNG fuel tank inspection list, one Public Works Storm Water Division vehicle, one Public Works Wastewater Division vehicle, one Public Works Streets Division vehicle, four Public Works Refuse Division vehicles, and six Public Utilities Water Field Services vehicles have CNG fuel tanks that have either expired, or will be expiring in the near future, as outlined in the table below:
Asset No.
Description
CNG Tank Expiration Date
Price
E361
2008 Autocar WX-64 Vactor Truck (PW–Storm Water)
Expired Mar-2022
$19,379.23
E364
2008 Autocar WX-42 Line Truck (PU–Water)
Expired Mar-2022
$19,379.23
E365
2008 Autocar WX-42 Line Truck (PU–Water)
Expires Apr-2022
$19,379.23
E366
2008 Autocar WX-42 Line Truck (PU–Water)
Expires Jul-2022
$15,875.23
E372
2008 Autocar WX-64 Vactor Truck (PW–Wastewater)
Expired Dec-2021
$19,379.23
E373
2008 Autocar WX-42 Line Truck (PU–Water)
Expires Nov-2022
$19,379.23
E374
2008 Autocar WX-42 Line Truck (PU–Water)
Expires Nov-2022
$20,090.00
I058
2007 Schwarze M6000 Sweeper (PW–Refuse)
Expired Oct-2021
$13,295.00
I060
2007 Schwarze M6000 Sweeper (PW–Refuse)
Expired Jul-2021
$13,295.00
J173
2008 Autocar WX-64 Packer (PW–Refuse)
Expires Oct-2022
$19,379.23
J176
2008 Volvo WX-64 Packer (PW–Refuse)
Expires Oct-2022
$19,379.23
S143
2008 Autocar WX-42 Dump Truck (PU–Water)
Expires Jul-2022
$19,379.23
S144
2008 Autocar WX-42 Dump Truck (PW–Streets)
Expires Jul-2022
$19,379.23
Total
$236,968.30
These vehicles have been evaluated by the General Services Fleet Division and deemed good candidates for re-tanking and extension of serviceability of not less than five years. The General Services Department recommends the purchase and installation of replacement CNG fuel tanks as a safe and economical alternative to vehicle replacement.
Purchasing Resolution 23812, Section 602(e) provides for an exception to the competitive process by stating that, “Competitive Procurement through the Informal and Formal Procurement process shall not be required in the following circumstances: (e) When the Procurement consists of replacement parts for the City’s vehicles and aviation units, and other motorized Fleet related equipment.” The Purchasing Manager concurs that the recommendation to approve is in compliance with Purchasing Resolution No. 23812.
The Public Works Director and the General Manager for the Public Utilities Water Department concurs with this report.
STRATEGIC PLAN ALIGNMENT:
The recommended purchase of the new replacement compressed natural gas fuel tanks for multiple vehicles contributes to Strategic Priority No. 4 Environmental Stewardship and Goal No. 4.6 – Implement the requisite measures to achieve citywide carbon neutrality no later than 2040.
The recommended purchase aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – This action builds community trust by ensuring the employees are serving the City of Riverside in safe and reliable vehicles that also contribute to the City’s goal of environmental sustainability.
Equity – The proposed vehicles for re-tanking provide a variety of services throughout the city such as trash collection, street sweeping, road maintenance, and water system maintenance. Replacing the expired or soon-to-expire CNG fuel tanks with new tanks in existing vehicles will provide safe and equitable services for the community.
Fiscal Responsibility – The General Services Fleet Division is proposing this purchase in accordance with Purchasing Resolution 23812, Section 602(e) to ensure the best price, terms and conditions are negotiated.
Innovation – The purchase and installation of replacement CNG fuel tanks in existing vehicles that have substantial service life remaining is a safe and economical alternative to vehicle replacement.
Sustainability & Resiliency – With this purchase, the City Fleet will continue to meet South Coast Air Quality Management District Rule 1196 and contributes to the City’s goal of using low-emission vehicles.
FISCAL IMPACT:
The total fiscal impact of the action, including the 15% change order authority, is $272,513.55 which is budgeted and available in the funds and accounts listed in the table below.
Fund
Program
Account
Amount
General Fund
PW Storm Drain Maintenance
4110300-424230
$22,826.11
General Fund
PW Street Maintenance
4110100-424121
$22,826.11
Sewer Fund
Sewer Collection System Maintenance
4125100-462100
$22,826.11
Refuse Fund
PW Solid Waste Collection
4130100-462100
$75,150.73
Water Fund
Water Field Operations
6205000-424130
$130,504.47
Total:
$272,513.55
Prepared by: Carl Carey, General Services Director
Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments: Quote from National CNG & Fleet Services
Purchase of Replacement CNG Fuel Tanks ● Page 2