City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00777 4/22/2025 Item 13.
Contract Supplement No. 2: Compressed Natural Gas (CNG) Fueling at Sacramento Regional Transit Facilities [Published for 10-Day Review 04/10/2025] File ID: 2025-00777
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute Supplement No. 2 to Contract No. 2022-0897 with Sacramento Regional Transit (RT) for the use of RT’s fuel site to purchase compressed natural gas (CNG) in an amount not to exceed $1,000,000 for a revised total contract not-to-exceed amount of $2,400,000.
Contact: Stacey Chatman, 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-Supplemental Agreement No. 02
Description/Analysis
Issue Detail: The Fleet Management Division within the Department of Public Works consistently needs to procure compressed natural gas (CNG) for vehicles used by many City departments. This supplementary agreement enables the City to persist in utilizing the Sacramento Regional Transit (RT) fuel site for CNG purchases.
Policy Considerations: The recommendation in this report is in accordance with City Code Chapter
3.56 and the 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. This item shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on April 10, 2025, in compliance with the City Code.
Economic Impacts: None.
File ID: 2025-00777 4/22/2025 Item 13.
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of 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 Meadowview Service Center hosts the City of Sacramento’s CNG fueling station to provide services in the south area of the City. This agreement authorizes the City to utilize RT’s fuel site to procure CNG fuel in the northern region, enhancing operational efficiencies for vehicles in that area. Recognizing a greater-than-anticipated utilization rate, the Fleet Management Division proposes Contract Supplement No. 2 approval to ensure uninterrupted service, as the existing contract authority is expected to be depleted before the contract term concludes. RT used a purchase agreement through the state of California Department of General Services that competitively bid the fuel being purchased.
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Fiscal Year 2024/25 operating budget for CNG purchases made through June 30, 2025, while the supplemental contract will expire in August 2027. Purchases made after June 30, 2025, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Not applicable. Sacramento Regional Transit is a public agency.