TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:August 27, 2024
SUBJECT: Trillium Compressed Natural Gas Purchases in FY 2023-24 RECOMMENDATION:
1. Approve $6,688 increase in annual not-to-exceed amount from $304,500 to $311,188 and additional expenditure in the amount of $6,688 from A/C #001-5640- 631-3510 (General Fund, Vehicle Fuel) for Compressed Natural Gas (CNG) purchases and equipment maintenance in FY 2023-24 under existing five-year Operations and Maintenance Services Agreement No. 12709-2021 with Trillium USA Company, LLC (Trillium) (Houston, TX).
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to prepare staff report and available funding is included in the Adopted FY 2023-24 General Fund Budget. $2,688,109 was included in the Adopted FY 2023-24 General Fund Budget for fuel purchases.
BACKGROUND:
In 2001, the City opened Ventura County's first public CNG fueling station next to the Municipal Service Center, designed and built by Trillium. On May 25, 2021, City Council approved a five-year Operations and Maintenance Agreement with Trillium for CNG purchases and equipment maintenance, not to exceed $912,000, from June 1, 2021, through June 30, 2026.
Starting in 2022, fueling by public agency and commercial vehicles at the City's public CNG station increased significantly, raising the City’s annual average
Trillium Compressed Natural Gas Purchases in FY 2023-24 August 27, 2024
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dispensed CNG fuel from 41,430 gallons to 268,473 gallons. This increase more than doubled Trillium's monthly service costs.
On March 14, 2023, City Council authorized an additional $500,000 expenditure under the existing five-year agreement with Trillium, raising the total not-to-exceed amount to $1,412,000 with an annual not-to-exceed of $304,500. The City pays operational costs upfront but is reimbursed through billing and service charges.
The City does not subsidize the cost of CNG fuel for public or private entities.
DISCUSSION/ANALYSIS:
The increased usage and operational costs owed to Trillium are largely driven by the operations of commercial vehicles utilizing the public CNG station. Higher- than-expected usage in FY 2023-24 exceeded initial projections, surpassing City Council-approved annual not-to-exceed amount of $304,500. It is important to note that the largest commercial user is completing construction of their own local service facility and CNG fueling station and is anticipated to begin using this station in Fall 2024. A substantial decrease in future demand is expected; however, the immediate need to pay Trillium’s June invoice necessitates this request.
Staff is requesting a $6,688 increase to the annual not-to-exceed amount of $304,500 to $311,188 in FY 2023-24 only to cover the invoice for CNG purchases and equipment maintenance in June 2024. The total not-to-exceed amount of $1,412,000 for the agreement term will remain unchanged.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $250 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially Trillium Compressed Natural Gas Purchases in FY 2023-24 August 27, 2024
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interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Donald Covarrubias, Fleet Services Supervisor Attachment:
Attachment #1 - Levine Act Disclosure Form
DPW241-20\ev\Council\2024\082724\Trillium CNG Purchases staff report.docx