City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01563 9/6/2022 Consent Item 4.
Licensing Agreement for CNG Fueling at Sacramento Regional Transit Facilities (Two-Thirds Vote Required)
File ID: 2022-01563
Location: Citywide
Recommendation: Pass a Motion: a) finding that suspending competitive bidding for the purchase of compressed natural gas is in the best interest of the City; b) suspending competitive bidding; c) authorizing the City Manager or the City Manager’s designee to execute a five-year licensing agreement with Sacramento Regional Transit (RT) for the use of RT’s fuel site to purchase compressed natural gas in an amount not-to-exceed $700,000.
Contact: Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected], Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has an ongoing requirement to purchase compressed natural gas (CNG) for various city departments. The agreement will allow the City to use the Sacramento Regional Transit (RT) fuel site to purchase CNG.
Policy Considerations: The recommendations in this report are in accordance with City Code City Code Chapter 3.56 which authorizes City Council to suspend competitive bidding when, upon a two- thirds vote, it is determined that it is in the best interest of the City to do so.
Economic Impacts: None.
Environmental Considerations:
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File ID: 2022-01563 9/6/2022 Consent Item 4.
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase CNG for City vehicles and is not considered to be a project in accordance with Section 15378(b)(2) of the guidelines.
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478). The use of CNG provides a cleaner burning fuel and decreases the City’s dependency on fossil fuels.
Commission/Committee Action: None.
Rationale for Recommendation: The City of Sacramento is in the process of completing the construction process of its own CNG fueling station at the Meadowview Service Center in the south area of the City. This agreement will allow the City to use RT’s fuel site to purchase CNG fuel in the north area which will allow for fuel efficiencies for the trucks located in that part of the City. There are no other CNG fueling stations available for City use in the north area of the City. RT uses a special purchase agreement through the state of California Department of General Services that competitively bid the fuel which we are purchasing.
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Fiscal Year 2022/23 operating budget for CNG purchases made through June 30, 2023. Purchases made after June 30, 2023, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Not applicable.
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