The URL can be used to link to this page

Home My WebLink AboutAgenda Report - September 19, 2012 C-06AGENDA ITEM C-10 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Agreement with Lodi Unified School District for Purchase of Compressed Natural Gas at Municipal Service Center Fueling Station MEETING DATE: September 19,2012 PREPARED BY: PublicWorks Director RECOMMENDED ACTION: Adopt resolution authorizing City Managerto execute agreementwith Lodi Unified School Districtfor purchase of compressed natural gas at Municipal Service Centerfueling station. BACKGROUND INFORMATION: Recently, Lodi Unified School District (LUSD) contacted City staff requestingto fill six new compressed natural gas (CNG) buses at the City's CNG fueling facility. They are currently constructing a new CNG fueling facility at their site that is to be completed in a year. The agreement includes extensions to accommodate LUSD's CNG facility construction schedule. The City will charge LUSD the current cost per therm charged by PG&E to Lodi, plus maintenance and operation costs, administrativefees, and a CNG Station depreciation/replacement charge. The current charge is $1.451 per equivalent gallon but fluctuates with the direct charge from PG&E. FISCAL IMPACT: Revenue receivedfrom the CNG fuel sale will be credited to the Transitfund. FUNDING AVAILABLE: Not applicable. J/1, 1 /.. J,.. " 4.1— F. Wally andelin Public Works Director Prepared by Paula Fernandez, Transportation Manager/Senior Traffic Engineer FWS/PJF/pmf cc: Fleet Supervisor Financial Services Manager Carlos Garcia, LUSD APPROVED: c T71�1 --- Konradt Bartlam, City Manager KAMPROJECTSURANSITILUSD CNG Fueling 2012WoLyWagme.doo 9/6/2012 AGREEMENT TO USE CNG FUELING STATION This Agreement is made and entered into , 2012 ("Effective Date"), by and between the City of Lodi, a municipal corporation ("Lodi"), and the Lodi Unified School District, a local school district ("LUSD"). WHEREAS, Lodi is the owner of a CNG Fueling Station located at its Municipal Service Center, 1331 South Ham Lane, Lodi, San Joaquin County, California ("CNG Facility'); and WHEREAS, LUSD desires to temporarily use the CNG Facility for the purpose of fueling certain buses in its district fleet while it constructs a CNG facility; and WHEREAS, Lodi has consented to the use of the CNG Facility on the terms and conditions detailed below. NOW, THEREFORE, the parties agree as follows: 1. Lodi will permit LUSD to use the CNG Facilities, for the sole purpose of fueling buses in its district fleet. LUSD will be charged per gallon of compressed natural gas and billed monthly for charges incurred, as follows: the current cost per therm (at the rate charged by PG&E to Lodi) X 1.278 (conversion factor) plus $0.52 per gallon for maintenance and operation costs, administration fees', and plus $0.12 per gallon for CNG Station depreciation/replacement chargee. Payment by LUSD is due and payable upon receipt of Lodi's invoice and delinquent if not paid in full within 30 days of receipt. 2. The term of this Agreement shall be from October 1, 2012, through December 31, 2013 ("Term"). Lodi through its City Manager and LUSD may mutually agree to extensions of this Agreement to accommodate LUSD's CNG facility construction schedule. 3. Employees of LUSD using the CNG Facilities are required to receive training by Lodi in the proper use of the CNG Facilities prior to use. 4. In the event that the CNG Facility is damaged by employees or agents of LUSD during the Term of this Agreement, LUSD agrees to reimburse the City for all costs incurred by the City that are necessary to return the CNG Facility to its condition prior to the damage. ' Cost per therm X 1.278+ $0.54 maintenance & operation + $0.10 administration = price per gallon of CNG fuel. 2 CNG Station Depreciation/Replacement Charge = + $0.12 per gallon of CNG fuel. Page 1 of 3 KAWP\PROJECTS\TRANSITIUSD CNG Fueling 2012\CNG Facility Use Agreement_Rev.doc 5. LUSD acknowledges that no more than two (2) buses are permitted at any one time at the CNG Facility and that buses waiting for fueling will be staged at an area designated by Lodi's Fleet Supervisor or his designee. LUSD also acknowledges and agrees that Lodi buses and fleet vehicles have priority to fuel at the CNG Facility, and may move ahead of LUSD buses when fueling, if necessary, to meet Lodi's fueling requirements. Should LUSD's fueling at the CNG Facility deplete the storage and/or availability of fuel for Lodi buses and fleet vehicles, the number of LUSD buses permitted to fuel may be limited. Lodi's Fleet Supervisor or his designee retain the sole discretion to limit the number of LUSD buses permitted to fuel at the CNG Facility during the Term of this Agreement. 6. This Agreement may be terminated by either party at any time upon 10 - days written notice to the other. Notice shall be given as provided in paragraph 11 below. 7. LUSD agrees to indemnify, defend and hold Lodi harmless from and against any and all claims, losses, damages, expenses, judgments and costs, including attorneys' fees and court costs, resulting from LUSD's use of the CNG Facility during the Term of this Agreement. 8. Upon execution of this Agreement, LUSD shall provide Lodi with documentation confirming that contract employees of LUSD are to be considered solely as employees of LUSD while said contract employees are using the CNG Facility or are on the grounds of Lodi's Municipal Service Center, and further that such contract employees are not covered under any existing contract that the City of Lodi may have with LUSD's current transportation contractor or any future transportation contractor that may be under contract with LUSD. 9. LUSD shall, at its own expense, maintain in full force and effect during the term of this Agreement a policy of at least $5,000,000 comprehensive public liability and auto liability insurance against any liability resulting from LUSD's use of the CNG Facility under this Agreement. Lodi shall be named as an additional insured and all policies shall be written on a primary basis. LUSD shall be able to furnish a certificate of such insurance or evidence of coverage provided under any self-insurance program maintained by LUSD immediately following execution of this Agreement. 10. LUSD may not assign its rights under this Agreement to any other party. 11. Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or in three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To Lodi: City of Lodi Wally Sandelin, Public Works Director 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Page 2 of 3 KAWP\PROJECTSURANSITIUSD CNG Fueling 2012\CNG Facility Use Agreement_Rev.doc To LUSD: LUSD Carlos Garcia, Director of Transportation 1305 E Vine Street Lodi, CA 95240 12. This Agreement contains the entire agreement between the parties relating to the rights granted and obligations assumed under it. Any amendments or modifications to this Agreement will not be effective unless contained in a writing signed by both parties. 13. This Agreement shall be interpreted and construed under the laws of the State of California. The forum for any dispute arising out of this Agreement shall be the San Joaquin County Superior Court. IN WITNESS WHEREOF, this Agreement has been entered into as of the effective date as written above. CITY OF LODI a municipal corporation By: KONRADT BARTLAM City Manager ATTEST: By RANDIJOHL City Clerk APPROVED AS TO FORM: By: D. STEPHEN SCHWABAUER City Attorney r LODI UNIFIED SCHOOL DISTRICT a local school district By: ATTEST: APPROVED AS TO FORM: By: Page 3 of 3 KAWP\PROJECTS\TRANSITIUSD CNG Fueling 2012\CNG Facility Use Agreement_Rev.doc RESOLUTION NO. 2012-145 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING CITY MANAGER TO EXECUTE AGREEMENT AND EXTENSIONS WITH LODI UNIFIED SCHOOL DISTRICT FOR PURCHASE OF COMPRESSED NATURAL GAS AT MUNICIPAL SERVICE CENTER FUELING STATION WHEREAS, Lodi Unified School District (LUSD) has requested to fill six new compressed natural gas (CNG) buses at the City's CNG fueling facility while it is constructing a new CNG fueling facility at its site; and WHEREAS, the LUSD facility should be completed in a year; however, the agreement includes extensions to accommodate LUSD's CNG facility construction schedule; and WHEREAS, the City will charge LUSD the current cost per therm charged by PG&E to Lodi, plus maintenance and operation costs, administrative fees, and a CNG Station depreciation/replacement charge. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute an agreement and extensions with Lodi Unified School District for purchase of compressed natural gas at the Municipal Service Center fueling station. Dated: September 19, 2012 I hereby certify that Resolution No. 2012-145 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 19, 2012, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Katzakian, Nakanishi, and Mayor Mounce NOES: COUNCIL MEMBERS— None ABSENT: COUNCIL MEMBERS — Hansen ABSTAIN: COUNCIL MEMBERS— None -4f �IJOHL City Clerk 2012-145 CITY COUNCIL JOANNE L. MOUNCE, Mayor ALAN NAKANISHI, Mayor Pro Tempore LARRY D.HANSEN BOBJOHNSON PHIL KATZAKIAN CITY OF LODI PUBLIC WORKS DEPARTMENT CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6706 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:\\www.lodi.gov September 13, 2012 Lodi Unified School District Carlos Garcia, Director of Transportation 1305 E. Vine Street Lodi, CA 95240 KONRADT BARTLAM City Manager RAND IJOHL City Clerk D. STEVEN SCHWABAUER City Attorney F. WALLY SANDELIN Public Works Director SUBJECT: Adopt Resolution Authorizing City Manager to Execute Agreement with Lodi Unified School District for Purchase of Compressed Natural Gas at Municipal Service Center Fueling Station Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, September 19, 2012. The meeting will be held at 7 p.m. in the City Council Chamber, Carnegie Forum, 305 West Pine Street. This item is on the consent calendar and is usually not discussed unless a Council Member requests discussion. The public is given an opportunity to address items on the consent calendar at the appropriate time. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand-deliverthe letterto City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Carnegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Randi Johl, City Clerk, at (209) 333-6702. If you have any questions about the item itself, please call Paula Fernandez, Transportation Manager, at (209) 333-6800, extension 2667. F. Wally Sandelin -or ' Public Works Director FWS/pmf Enclosure cc: City Clerk NCCLUSDAGREE.DOC