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HomeMy WebLinkAboutAgenda Report - May 19, 2010 D-04AGENDA ITEM -4 CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Approve Requests for Proposals and Authorize Advertisement for Municipal Service Center Compressed Natural Gas (CNG) Fueling Station Maintenance Contract and Upgrade of Compressor Control Panel; and Adopt Resolution Approving Purchase of Compressor Parts from GreenField, of Richardson, Texas, and Appropriating Funds ($22,000) MEETING DATE: PREPARED BY: May 19, 2010 PublicWorks Director RECOMMENDED ACTION: Approve Requests for Proposals and authorize advertisement for Municipal Service Center Compressed Natural Gas (CNG) fueling station maintenance contract and upgrade of compressor control panel; and adopt a resolution approving purchase of compressor parts from GreenField, of Richardson, Texas, and appropriating funds in the amount of $22,000. BACKGROUND INFORMATION: This project, located at the Municipal Service Center (MSC) Compressed Natural Gas (CNG) fueling station, consists of issuing a Request for Proposal (RFP) for a two-year maintenance contract, including the laborto rebuild one of the two existing compressors; issuing a RFP to upgrade one of the existing compressor control panels (either rebuild or replace); and approving the purchase of compressor parts from the original equipment manufacturer, GreenField, as the sole supplier. The existing MSC CNG fueling station was constructed in two phases, the first in 2002/03 and the second in 2006/07. The initial construction included a 125 -horsepower electric motor; reciprocating compressor, which now has over 7,000 hours of accumulated run time; and control panel. The original control panel, also installed in 2002, has failed and is not repairable. The existing compressor is leaking oil and the service contractor advises that it should be rebuilt. In addition, anew or rebuilt control panel is needed, which will eliminate compressor down-time and call -outs as it will automatically allow switching to the second compressor as a backup, as opposed to the manual switching operation required with the existing control panel. Separating the work into two RFP's and adding the maintenance contract component will allow the City to obtain proposals from firms specializing in the different types of work. Purchasing the parts for the compressor rebuild directly from the original equipment manufacturerwill save the City time and money. Lodi Municipal Code Section 3.20.070 authorizes dispensing with bids for purchase of supplies, services or equipment when in the best interest of the City. Staff recommends that Council approve the sole source purchase of the compressor rebuild parts from GreenField, the original equipment manufacturer. The award of a two-year maintenance contract with the compressor overhaul will offer the greatest value to the City because it allows the contractor the option to amortize the laborfor the compressor overhaul APPROVED: konradt Bartlam, Interim City Manager K:\WP\PROJECTS\TRANSIT\CNGSTATION\MSC CNG Improvements 201MCRFPs_PurchaseParts.doc 5/11/2010 Approve Requests for Proposals and Authorize Advertisement for Municipal Service Center Compressed Natural Gas (CNG) Fueling Station Maintenance Contract and Upgrade of Compressor Control Panel; and Adopt ResolutionApproving Purchase of Compressor Parts from GreenField, of Richardson, Texas, and Appropriating Funds ($22,000) May 19, 2010 Page 2 over the two-year contract period. The RFP to upgrade the compressor control panel will provide the option to rebuild it on-site or provide a new unit produced at the factory. The estimated cost for the compressor rebuild parts is $22,000; this Council action includes appropriating these funds. The estimated cost for the maintenance contract is $22,000 per year, which is budgeted in the proposed Fleet Services operating budget for 2010/11. The estimated cost to rebuild or replace the compressor control panel is $25,000, plus $20,000 for electrical/installation work, permits and contingencies. These funds will be appropriated upon award of the contract. The Requestsfor Proposals are on file in the Public Works Department. The planned RFP opening date is June 15, 2010. The approximate project completion date will be at the end of September 2010. FISCAL IMPACT: There will be a slight decrease in the long-term maintenance costs associated with the installation of these new improvements. FUNDING AVAILABLE: Requested Appropriation: $22,000 Federal Transit Administration Grant CA -90-Y736 (FFY 2009) (80%): $17,600 Transportation DevelopmentAct (20%)funds (125079): $4,400 Jor an yers Deputy City Manager/Internal Services Director F. Wally andelin Public Works Director Prepared by Dennis J. Callahan, Fleet and Facilities Manager FWS/DJC/pmf cc: City Attorney Purchasing Officer TransportationManager/Senior Traffic Engineer Fleet Supervisor Tom Mitchell Engineers and Associates K:\WP\PROJECTS\TRANSIT\CNGSTATION\MSC CNG Improvements2010\CRFPs_PurchaseParts.doc 5/11/2010 RESOLUTION NO. 2010-60 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING PURCHASE OF COMPRESSOR PARTS FOR MUNICIPAL SERVICE CENTER COMPRESSED NATURAL GAS (CNG) FUELING STATION AND FURTHERAPPROPRIATING FUNDS WHEREAS, the reciprocating compressor located at the Municipal Service Center (MSC) compressed natural gas (CNG) fueling station has an accumulated run time of over 7,000 hours and is now leaking oil; the service contractor recommends having it rebuilt; and WHEREAS, staff recommends separating the work into two requests for proposals and purchasing the compressor parts directly from the manufacturer to save the City time and money; and WHEREAS, GreenField, of Richardson, Texas, is the original manufacturer and sole supplier. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the purchase of compressor parts for the Municipal Service Center CNG fueling station from GreenField, of Richardson, Texas, as a sole supplier, in the amount of $22,000; and BE IT FURTHER RESOLVED that funds in the amount of $22,000 be appropriated from Federal Transit Administration Grant CA -90-Y736 (FFY 2009) and Transportation Development Act funds for this purchase. Dated: May 19, 2010 I hereby certify that Resolution No. 2010-60 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 19, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS — None &JOHL City Clerk 2010-60