HomeMy Public PortalAbout10. Agreement with Natural Gas Systems - Compressor Replacement ProjectClaremont City Council
Agenda Report
File #:4925 Item No:10.
TO:ADAM PIRRIE, CITY MANAGER
FROM:JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE:NOVEMBER 14, 2023
Reviewed by:
City Manager:AP
SUBJECT:
AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH NATURAL GAS SYSTEMS FOR THE
COMPRESSED NATURAL GAS STATION COMPRESSOR REPLACEMENT PROJECT (FUNDING
SOURCES: MOTOR FLEET FUND AND SANITATION FUND)
SUMMARY
The Claremont City Yard is equipped with a Compressed Natural Gas (CNG)fueling station to
support the City’s CNG fleet.The CNG station has two compressors that condense natural gas to the
correct pressure for automotive use.The two existing compressors have reached the end of their
useful lives and require replacement.The City has a current agreement with ANGI Energy Systems,
LLC to procure two replacement compressors.The City now proposes to contract with Natural Gas
Systems, Inc. to perform the compressor removal and replacement project.
RECOMMENDATION
Staff recommends the City Council authorize the City Manager to enter into an agreement with
Natural Gas Systems,Inc.in the amount of $27,934.35 to install two replacement Compressed
Natural Gas station compressors.
ALTERNATIVE TO RECOMMENDATION
In addition to the staff recommendation, there is the following alternative:
·Request more information.
FINANCIAL REVIEW
The cost to purchase the two CNG compressors from ANGI Energy Services,LLC is $63,000,
including tax and shipping.The cost to retain Natural Gas Systems,Inc.to remove the existing
compressors and install the replacement compressors is $27,934.35.The total project cost is
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compressors and install the replacement compressors is $27,934.35.The total project cost is
$90,934.35.
At its September 12,2023 meeting,the City Council appropriated $90,936 ($45,468 from the Motor
Fleet Fund balance and $45,468 from the Sanitation Fund balance)to complete the project.
Therefore,sufficient funds are available to execute the proposed agreement with Natural Gas
Systems.
The staff cost to prepare this report and administer this project is estimated at $3,700 and is included
in the operating budget of the Community Services Department.
ANALYSIS
The City is committed to utilizing alternative fuel vehicles as one of its sustainability practices.The
City’s sanitation fleet,as well as several maintenance trucks,have been converted to compressed
natural gas fuel.In addition,the City provides CNG fuel contractually to the City of Montclair,Visser
Bus Service,and Nationwide Environmental,the City’s contract street sweeping provider.When the
City Yard was constructed in 2005,the facility was equipped with a CNG fueling station.The fueling
station has two compressors that condense natural gas to the correct pressure for automotive use.
In August 2023,it was determined that both CNG compressors have reached the end of their useful
lives and require replacement.On September 12,2023,the City Council authorized a contract with
ANGI Energy Systems,LLC to purchase two replacement compressors.Since that time,staff
solicited quotes from qualified contractors to supply the necessary labor to remove and replace the
two compressors.
The City of Claremont contacted four companies to request quotes for installation services.The
proposals received were as follows:
CONTRACTOR QUOTE
Natural Gas Systems, Inc.$27,934.35
Jaycox Construction $38,232.00
Opal Fuels, Inc.Declined to Bid
Clean Energy, Inc.Declined to Bid
Natural Gas Systems,Inc.is the lowest responsive bidder.The City has a current agreement with
Natural Gas Systems,Inc.for ongoing CNG station maintenance and repair.Natural Gas Systems,
Inc.is familiar with the City’s CNG station and has experience performing past compressor
replacements for the City.Work to replace the failed compressor is tentatively scheduled to begin
November 15, 2023. The second, functional compressor will be replaced in December 2023.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents
and finds that it applies to the following City Planning Documents:Council Priorities,Sustainable City
Plan, Economic Sustainability Plan, General Plan, and the 2022-24 Budget.
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CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act
(CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to
interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:Prepared by:
Jeremy Swan Kristin Mikula
Community Services Director Community Services Manager
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