TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:June 23, 2026
SUBJECT: Compressed Natural Gas Fueling Station Operation and Maintenance Agreement
RECOMMENDATION:
1. Waive formal Request for Proposals/Qualifications process for operation and maintenance services for the City’s Compressed Natural Gas (CNG) fueling station and approve Trillium USA Company, LLC dba Loves Alternative Energy (Trillium) as a single source pursuant to Thousand Oaks Municipal Code Section 3-10.501.
2. Approve a five-year Operation and Maintenance Agreement with Trillium (Houston, TX), for operation and maintenance of the City’s Compressed Natural Gas (CNG) fueling station in a not-to-exceed amount of $1,050,000 for the term July 1, 2026, through June 30, 2031, including $150,000 for extra services.
3. Authorize City Manager to execute agreement after City Attorney review.
4. Authorize expenditure in the amount of $195,000 ($180,000 agreement, plus extra services of $15,000) in FY 2026-27 from A/C #001-5640-631-3510 (General Fund - Fuel).
5. 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. $195,000 is included in the Adopted FY 2026-27 General Fund Budget for CNG fueling station operations and maintenance. Funds for the remaining contract term will be requested during the upcoming biennial budget process.
BACKGROUND:
In April 2001, the City opened a CNG fueling station at the City’s Municipal Service Center (MSC) to support City fleet operations, along with an adjacent public CNG
CNG Fueling Station Operation and Maintenance Agreement June 23, 2026
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fueling station. The station compresses utility-supplied natural gas into high- pressure CNG for use in the City’s fleet vehicles. The original station was designed and built by Pinnacle CNG Co., which was acquired by Trillium in 2013. Trillium has since completed multiple upgrades to keep the facility operational, utilizing proprietary equipment and systems. Trillium is solely qualified and most knowledgeable to operate and maintain its proprietary equipment, including the station’s smart controls and 400L compressor.
For more than two decades, the station supported both City fleet operations and public fueling needs through a public fast-fill dispenser and 32 slow-fill CNG fueling hoses located at the MSC. The fast-fill system allowed vehicles to fuel individually in a manner similar to a traditional gasoline station, while the slow-fill system allows fueling of multiple vehicles simultaneously over extended periods, primarily for transit and other operations vehicles overnight. In late 2025, the public fast-fill station was decommissioned as part of the City’s evolving fleet and fueling strategy, and in response to significantly declining public demand.
Since the station was originally constructed, the City has maintained agreements with Trillium for fuel management, maintenance, repairs, and technical support services necessary to operate the facility. The current agreement, approved by City Council in 2021, expires June 30, 2026.
Alternative fuel vehicles, including CNG-fueled transit buses, make up approximately 70 percent of the City’s fleet. While the City continues transitioning portions of its fleet to electric vehicles (EVs), the CNG fueling system remains critical to operations, particularly for the City’s transit bus fleet which utilizes the slow-fill fueling system at the MSC.
DISCUSSION/ANALYSIS:
The remaining station infrastructure continues to support City fleet fueling needs and requires ongoing maintenance, monitoring, and specialized technical support to ensure reliable operation of the aging fueling equipment and systems.
Trillium has performed well for the City with minimal service interruptions and has consistently provided reliable operational and maintenance support for the City’s CNG fueling infrastructure. Due to Trillium’s proprietary knowledge of the station equipment, controls, and compressor systems, staff recommends continuing with Trillium for operation and maintenance services of the City’s CNG fueling station and associated slow-fill infrastructure located at the MSC, and request approval of Trillium as a single source. The term of the proposed new five-year agreement with Trillium is from July 1, 2026, through June 30, 2031.
CNG Fueling Station Operation and Maintenance Agreement June 23, 2026
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The new agreement, in a not-to-exceed amount of $1,070,000 for the term July 1, 2026, through June 30, 2031, transitions the current throughput-based pricing structure to a fixed monthly turnkey fee for operation and maintenance services of the City’s CNG station. The turnkey model is intended to provide a more consistent and predictable approach for maintaining and operating the City’s aging CNG infrastructure while accommodating routine maintenance, inspections, monitoring, and potential repair needs associated with long-term operation of the system. The proposed structure also provides the City with greater operational and budgeting predictability while continuing to ensure ongoing maintenance, inspection, monitoring, and emergency response services for the fueling system.
In addition, the agreement provides the City with a $0.20 per (125,000 Btu) gasoline gallon equivalent (GGE) credit for renewable natural gas (RNG) dispensed through the station. RNG is a renewable form of CNG derived from organic waste sources that can be used in the same fueling infrastructure and vehicles as conventional CNG. The City’s RNG fuel purchases come through Trillium’s California RNG supply network, including dairy and other organic waste- derived fuel projects which are connected to the utility natural gas pipeline system through a separate agreement between Trillium and SoCalGas as opposed to being produced directly at the City’s facility.
While the above-described major deal points have been finalized, staff and Trillium are still in the process of negotiating a few minor details in the agreement.
Therefore, staff is requesting a delegation of authority for City Manager to execute the finished document reflecting the terms stated here after review and approval of the City Attorney’s Office.
The use of RNG and support for the City’s alternative fuel fleet aligns with the City’s Climate and Environmental Action Plan objectives related to reducing greenhouse gas emissions while the City incrementally transitions eligible vehicles to zero- emission alternatives.
This action meets City Council’s Top Ten Priorities #9, “Public Works Infrastructure Investments.”
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 $500 (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 CNG Fueling Station Operation and Maintenance Agreement June 23, 2026
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applicable (2) return the portion of the contribution that exceeds $500 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 $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (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- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The completed Levine Act form is included as Attachment #1.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
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.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Donald Covarrubias, Fleet Maintenance Supervisor Attachment:
Attachment #1 – Trillium Levine Act Disclosure Form
DPW: 241-20\ev\Council\2026\062326\CNG Fueling Station Operation and Maintenance Agreement staff report.docx