HomeMy Public PortalAbout13. Award of Contract - ANGI Energy Systems, LLC. for Two CNG Station Compressors
Claremont City Council
Agenda Report
File #:4824 Item No:13.
TO:ADAM PIRRIE, CITY MANAGER
FROM:JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE:SEPTEMBER 12, 2023
Reviewed by:
City Manager:AP
SUBJECT:
AWARDOFCONTRACTTOANGIENERGYSYSTEMS,LLC.FORTHEPURCHASEOFTWO
CNGSTATIONCOMPRESSORS(FUNDINGSOURCE:MOTORFLEETANDSANITATION
FUNDS)
SUMMARY
TheCityiscommittedtoutilizingalternativefuelvehiclesasoneofitssustainabilitypractices.The
City’ssanitationfleetaswellasseveralmaintenancetruckshavebeenconvertedtocompressed
naturalgas(CNG)fuel.Inaddition,theCityprovidesCNGfuelcontractuallytotheCityofMontclair,
VisserBusService,andNationwideEnvironmental,the City’scontractstreetsweepingprovider.
WhentheCityYardwasconstructedin2005,thefacilitywasequippedwithaCNGfuelingstation.
Thefuelingstationhastwocompressorsthatcondensenaturalgastothecorrectpressurefor
automotive use.
Thetwoexistingcompressorshavereachedtheendsoftheirusefullivesandrequirereplacement.
StaffproposestopurchasethecompressorsdirectlyfromANGIEnergySystems,LLCandto
contract with vendor to be determined to install the compressors.
RECOMMENDATION
Staff recommends that the City Council:
A.AuthorizetheCityManagertoenterintoacontractwithANGIEnergySystems,LLC.inthe
amount of $63,000 to purchase two new CNG station compressors; and
B.Appropriate$45,468fromtheMotorFleetFundbalanceand$45,468fromtheSanitationFund
balance to finance the compressor purchase and installation.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
Request more information.
FINANCIAL REVIEW
ThecosttopurchasethetwoCNGcompressorsfromANGIEnergyServices,LLCis$63,000,
includingtaxandshipping.ANGIEnergyServicesisthesolemanufacturerofthesecompressors;
therefore,thispurchaseisasole-sourcepurchasethatdoesnotrequirebiddingandcomplieswillall
City purchasing guidelines. Contract documents are available for review in the City Clerk's office.
Staffiscurrentlysolicitingthreequotestoremovetheoldunitsandtoinstallthenewunits.Todate,
onequotehasbeenreceivedtotalingapproximately$27,936.Asofthepublishingdateofthisreport,
twocompetitorquotesarependingwhichmaylowertheprice.Basedupontheoneinstallationquote
received,thetotalpricetopurchaseandinstalltheunitsisupto$90,936.Staffrequestsan
appropriationfromtheMotorFleetandSanitationFundstoensureadequatefundingisavailableto
completetheproject.TheSanitationandMotorFleetFundshavesufficientbalancestofundthis
appropriationandmaintainnecessaryreserves.IfthefinalcosttoinstalltheunitsexceedstheCity
Manager’ssignatureauthorityof$25,000,asubsequentreportwillbebroughttotheCityCouncilto
authorizetheinstallationcontractatafuturemeetingdate.Ifthefinalcostisunder$25,000,theCity
Managerwillauthorizetheinstallationcontractandanyunspentfundswillbereturnedtothe
Sanitation and Motor Fleet fund balances.
Thestaffcosttopreparethisreportandadministerthiscontractisestimatedat$3,700andis
included in the operating budget of the Community Services Department.
ANALYSIS
TheCityYardfacilitywasconstructedin2005withaCNGfuelingstation.TheCNGstationhastwo
compressorsthatcondensenaturalgastotheappropriatepressureforautomotivefueling.TheCNG
stationfeaturesaredundantsystemwithtwocompressorsthatalternateactivitysothatnoone
compressorissolelyresponsibleformanagingthe system’sload.Thecompressorsrunasneeded
throughout the day and night to maintain appropriate system pressure.
Thecurrentcompressorswerereplacedin2021.Anexpectedusefullifeforsimilarcompressorsis
7,000hoursofuse;thecurrentcompressorshavenearly7,000hourseachandareexperiencing
severemechanicalissuesthatcannotberepaired.Eachcompressorisinspectedeverytwoweeks
andregularpreventativemaintenanceisperformed.Whenpossible,theCityrepairstheunitsto
extend their lifespan. Currently, the compressors warrant full replacement.
Inordertogetthebestpossiblepricing,staffproposestopurchasethecompressorsdirectlyfromthe
manufacturerandtocontractseparatelyforinstallationservices.Purchasingtheequipmentdirectly
willreducethetotalprojectcostbyapproximately$8,000byeliminatingthe contractor’sproduct
markups.ToensurethatthecompressorsarecompatiblewiththeexistingCNGstation,itis
necessarytosole-sourcethepartspurchasewithANGIEnergySystems,LLC.Theleadtimeto
receivethecompressorsisapproximatelyeightweeks,afterwhichinstallationisanticipatedtotake
seven days. One compressor will be replaced at a time to ensure there are no service interruptions.
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Citystaffisintheprocessofobtainingthreequotesforinstallationservices.Todate,onequotehas
beenreceivedfor$27,936.Twocompetitivequotesarepending.Basedupontheoneinstallation
quotereceived,thetotalpricetopurchaseandinstalltheunitsisupto$90,936.Staffrequestsan
appropriationfromtheMotorFleetandSanitationFundstoensureadequatefundingisavailableto
completetheproject.IfthefinalcosttoinstalltheunitsexceedstheCity Manager’ssignature
authorityof$25,000,asubsequentreportwillbebroughttotheCityCounciltoauthorizethe
installation contract at a future meeting.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staffhasevaluatedtheagendaiteminrelationshiptothe City’sstrategicandvisioningdocuments
andfindsthatitappliestothefollowingCityPlanningDocuments:CouncilPriorities,SustainableCity
Plan, Economic Sustainability Plan, General Plan, and the 2022-24 Budget.
CEQA REVIEW
ThisitemisnotsubjecttoenvironmentalreviewundertheCaliforniaEnvironmentalQualityAct
(CEQA).
PUBLIC NOTICE PROCESS
TheagendaandstaffreportforthisitemhavebeenpostedontheCitywebsiteanddistributedto
interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:Prepared by:
Jeremy SwanKristin Mikula
Community Services DirectorCommunity Services Manager
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