City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00475 5/9/2023 Consent Item 6.
Contract Supplement No. 3: Compressed Natural Gas (CNG) and Renewable Compressed Natural Gas (RNG) [Published for 10-Day Review on 04/27/2023] File ID: 2023-00475
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 3 to Contract No. 2021-0516 with Clean Energy for the purchase of Compressed Natural Gas (CNG) and Renewable Compressed Natural Gas (RNG) in an amount not to exceed $2,000,000 for a revised total contract not-to-exceed amount of $4,753,653.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163; [email protected]; Department of Public Works
Presenter: None
Attachments:
1 - Description/Analysis
2 - Contract Supplement No. 3
Additional Description/Analysis
Issue Detail: The City’s Recycling and Solid Waste collection vehicles are fueled with CNG, which is a cleaner fuel than standard diesel. To meet ongoing fuel needs, the Department of Public Works, Fleet Management Division, has an requirement to purchase CNG and RNG.
Policy Considerations: Fuel costs are included in the applicable fleet budgets. The recommendations in this report are in accordance with City Code Chapter 3.56 which requires City Council approval of any contracts or amendments of $250,000 and above, and Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior
File ID: 2023-00475 5/9/2023 Consent Item 6.
to council action. This item was published for 10-day review on April 27, 2023, in compliance with City Code.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of CNG and RNG for City vehicles and is not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases are consistent with the Fleet Sustainability policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Compressed Natural Gas and Renewable Natural Gas are alternative fuels that have lower emissions than diesel fuel. These fuels are primary used in the City’s refuse trucks.
Commission/Committee Action: None.
Rationale for Recommendation: On April 5, 2021, City Council passed a Resolution No. 2021-00429 (Contract 2018-0516), awarding a five-year contract to Clean Energy for the purchase CNG and RNG. The Fleet Management Division has determined that, due to a higher rate of utilization than originally anticipated, the current contract authority will be exhausted prior to the end of the contract term and recommends approval of Contract Supplement No. 3 to avoid any disruption in service.
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Division’s Fiscal Year (FY) 2022/23 operating budget (Fleet Fund, Fund 6501) to purchase CNG and RNG 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): Clean Energy is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only):2021-0516Supplement/Addendum #:03Parcel Number(s):Contract Effective Date:04/05/2021_ Contract Expiration Date (if applicable):04/05/2026$ Amount (Not to Exceed):$ 4,753,653.00Adjusted $ Amount (+/-):$ 2,000,000Other Party:Clean EnergyProject Title:Compressed Natural Gas (CNG) and Renewable Compressed Natural Gas (RNG)Project #: Bid/RFQ/RFP #:City Council Approval:YESif YES, Council File ID#:Contract Processing ContactsDepartment:Public WorksProject Manager:Bobbie SmallContract Coordinator:Song MouaEmail:[email protected] Review and RoutingAccounting: Supervisor: Division Manager:Other:(Signature)(Signature)(Signature)(Signature)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)Recording RequestedOther Party Signature Required*Suspend Competitive Bidding------------------FOR CLERK & IT DEPARTMENTS ONLYDO NOT WRITE BELOW THIS LINE------------------CC Rev. 12.19.2018
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: Compressed Natural Gas (CNG) and Renewable Compressed Natural Gas (RNG)Date: 2/28/2023Purchase Order #: Supplemental Contract No.: 03 The City of Sacramento ("City") and Clean Energy ("Contractor"), as parties to that certain CNG Fuel Price Agreement designated as Contract Number 2021-0516 , including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The maximum not-to-exceed amount that is specified in the CNG Fuel Price Agreement of the Contract for payment of Special Provisions, is increased by $2,000,000, not-to-exceed amount is amended as follows: Agreement's original not-to-exceed amount: $2,753,653.00 Net change by previous supplemental contracts: $0.00_______ Not-to-exceed amount prior to this supplemental contract: $2,753,653.00 Increase by this supplemental contract: $2,000,00.00_ New not-to exceed amount including all supplemental contracts: $4,753,653.00 1. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 2. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract. [SIGNATURES ON FOLLOWING PAGE]
SUPPLEMENTALCONTRACT
(Rev.11-1-19)
Approval Recommended By: Approved As To Form By:Project Manager City AttorneyApproved By: Attest:Contractor City ClerkApproved By:Ryan Moore, Director of Public WorksCity of Sacramento