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Home My WebLink About2009/12/08 Item 7 CITY COUNCIL AGENDA STATEMENT 'w; ;$ '2::. CITY OF .~ (HULA VISTA 12/8/09, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING PARTICIPATION IN THE METROPOLITAN TRANS[T SYSTEM'S (MTS) REQUEST FOR PROPOSALS (RFP) FOR COMPRESSED NATURAL GAS (CNG) FUELING FACILITIES UPGRADE AND MAINTENANCE DIRECTOR OF PUBLIC WORK~ CITY MANAGER~ ASSISTANT CIT~ANAGER c:;, '/ 4/5THS VOTE: YES D NO ~ SUBMITTED BY: REVIEWED BY: SUMi"IARY The City's CNG fueling station has been in operation since the middle 01'2002. The station was built subsequent the direction of Council in 1998 to convert the Chula Vista Transit (CVT) fleet to 100% CNG fuel. This goal of having a 100% CNG fleet was reached in November 2009. The CNG station is currently maintained by Allsup Corporation and operated by the City's Central Garage. Since 96% percent of the fuel compressed by the City's CNG station is used by transit, it makes sense to transfer the operating responsibility to a third party under the MTS contract. This would allow Central Garage personnel to focus primarily on maintaining City vehicles and equipment. The City's Fleet Manager supports this change, as City Transit staff will continue to be responsible for monitoring the contractor's performance and the reliability of the CNG station. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has deternlined that the activity is not a "Project as defined under Section 15378 of the State CEQA Guidelines because the proposed action involves continuing administrative/maintenance activities by the City of Chula Vista. Therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. 7-1 12/8/09, Item l Page 2 of 3 BOARDS/COMMISS[ON RECOMMENDA nON Not applicable DISCUSSION One key component of operating a CNG fleet is the operation and maintenance (O&M) of the station. The reliable and consistent operation of the equipment involved in the fueling process is critical to the current and future provision of transit services. For this reason, City Transit staff has joined the MTS procurement process for the CNG station and O&M. This process will result in a a ten-year term contract, and as it relates to the City of Chula Vista, consisting of an O&M component and an optional upgrade to the equipment. The process will involve an initial Request for Proposal (RFP) followed by a negotiated procurement for a service start date of March I, 2010. MTS is including three of their fueling facilities in this solicitation. Adding CVT to the larger procurement process will increase the attractiveness and competitiveness of the contract, with a goal of achieving improved economies of scale and reducing transit fuel costs in the regIOn. The procurement has the following objectives: . Reduce Costs . Achieve Economies of Scale . Reduce Contractor Overhead . Consolidate Services Under One Contractor . Long-Term Contract - Ten- Y ear Base . Pursue CNG Station Upgrade Opportunities These services will include all scheduled and unscheduled repairs, as well as all maintenance, consumables, parts, and labor as required to maintain the performance of the equipment. Reimbursement will be based on a per-therm cost that will include all costs associated with the operation of the facility. Additionally, the RFP includes an Upgrade Option clause to add or replace equipment. The proposed upgrade options for the Chula Vista facility will be presented to the successful proposer for a quote, followed by negotiations if needed. The upgrade consists of the following: o Addition of a third compressor o Upgrading supply pipe diameter o Upgrade piping supply to CNG dispensers o Upgrading public access fuel station The option to upgrade the Chula Vista facility will depend on the price quoted for the upgrades and the availability of funds. The City currently has unallocated Transit Development Act funds available for this type of project. [f the option is exercised, City Transit staff will return for Council's authorization to appropriate the funds. City Transit staff considers the participation of the City in this regional procurement as part of its practice to work cooperatively with MTS in order to increase the effectiveness and efficiency of regional transit funds. 7-2 12/8/09, Item ~ Page 3 of 3 DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Councilmembers and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. CURRENT YEAR FISCAL IMPACT CVT operations and capital programming contains no General Fund contribution. The CVT operating and maintenance contract costs will be funded 100% by MTS, TDA Article 4.0 funds. ONGOING FISCAL IMPACT No General Fund contribution. Ongoing operating and maintenance costs will be funded 100% by MTS, TDA Article 4.0 funds. ATTACHMENTS None. Prepnrcd by. Andy Trujillo - Trnnsit iHal1ager, Department of Public Works, Transit Division K:\PUBLlC WORKS\AGENDA\CAS2009\1 2-08-09\Agenda Statement - City-MTS CNO Operation Maintenance RFP.doc 7-3 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING PARTICIPATION IN THE METROPOLITAN TRANSIT SYSTEM'S (MTS) REQUEST FOR PROPOSALS (RFP) FOR COMPRESSED NATURAL GAS (CNG) FUELING FACILITIES UPGRADE AND MAINTENANCE WHEREAS, the City's CNG fueling station has been in operation since the middle of 2002; and WHEREAS, the station was built subsequent the direction of Council in 1998 to convert the Chula Vista Transit (CVT) fleet to 100% CNG fuel. The goal of having a 100% CNG fleet was reached in November 2009; and WHEREAS, the CNG station is currently maintained by Allsup Corporation and operated by the City's Central Garage; and WHEREAS, since 96% percent of the fuel compressed by the City's CNG station is used by transit, it makes sense to transfer the operating responsibility to a third party under the MTS contract. This would allow Central Garage personnel to focus primarily on maintaining City vehicles and equipment; and WHEREAS, the City's Fleet Manager supports this change, as City Transit staff will continue to be responsible for monitoring the contractor's performance and the reliability of the CNG station; and WHEREAS, one key component of operating a CNG fleet IS the operation and maintenance (O&M) of the station; and WHEREAS, the reliable and consistent operation of the equipment involved in the fueling process is critical to the current and future provision of transit services. For this reason, City Transit staff has joined the MTS 's RFP for CNG station O&M; and WHEREAS, adding CVT to the larger procurement process will increase the attractiveness and competitiveness of the RFP, with a goal of achieving improved economies of scale and reducing transit fuel costs in the region; and WHEREAS, City Transit staff considers the participation of the City in this regional procurement as part of its practice to work cooperatively with MTS in order to increase the effectiveness and efficiency of regional transit funds. 7-4 NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Chula Vista does hereby authorize participation in the Metropolitan Transit System's (MTS) Request for Proposals (RFP) for Compressed Natural Gas (CNG) Fueling Facilities Upgrade and Maintenance. Presented by Richard A. Hopkins Director of Public Works 7-5