HomeMy WebLinkAboutResolutions - No. 2008-27RESOLUTION NO. 2008-27
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AGREEMENT BETWEEN CITY OF LODI AND
CITY OF ELK GROVE FOR PURCHASE OF COMPRESSED NATURAL GAS
AT CITY OF LODI'S MUNICIPAL SERVICE CENTER AND EXTENSION
WHEREAS, the city of Elk Grove contacted the City of Lodi's Fleet and Facilities
Manager with a request to fill some of its compressed natural gas (CNG) -powered buses on a
short-term, emergency basis when one of its regular CNG fueling stations became unavailable;
and
WHEREAS, the city of Elk Grove's short-term needs will continue months longer than
expected as it will be building a new CNG fueling station to offset the existing CNG station loss.
The city cf Elk Grove is now advertising for bids for construction of its new CNG fueling station,
but construction will not be completed until June 2008. Should construction take longer than
anticipated, an extension may be needed; and
WHEREAS, City staff recommends that an agreement to use the City's CNG fueling
station at the MSC be formalized and that the City Manager be authorized to execute the
attached agreement; and
WHEREAS, the City of Lodi will charge the city of Elk Grove the current cost per therm
charged by PG&E to Lodi, plus maintenance and operation costs, administrative fees and taxes,
and a CNG station depreciation/replacement charge.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the
City Managerto execute an agreementwith the city of Elk Grove to purchase CNG at the City of
Lodi's MSC fueling station; and
BE IT FURTHER RESOLVED that the Lodi City Council hereby authorizes the City
Manager to execute an extension to the agreement not to exceed one year; and
BE IT FURTHER RESOLVED that the charge for the CNG will be the current cost per
therm charged by PG&E to Lodi, plus maintenance and operation costs, administrative fees and
taxes, and a CNG station depreciation heplacement charge.
Dated: February 20, 2008
I hereby certify that Resolution No. 2008-27 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 20, 2008, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Johnson, Katzakian, and
Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS —None
ABSTAIN: COUNCIL MEMBERS — None
I JOHL
City Clerk
101Z1Zs1I
AGREEMENT TO USE CNG FUELING STATION
This Agreement is made and entered into February , 2008 ("Effective
Date"), by and between the City ef Lodi, a municipal corporation ("Lodi"), and the City of
Elk Grove. a municipal corporation ("Elk Grove").
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, Elk Grove desires to temporarily use the CNG Facility for the
purpose of fueling certain buses in its municipal fleet: 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 Elk Grove to use the CNG Facilities, for the sole purpose
of fueling buses in its municipal fleet. Elk Grove 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
$0.42 per gallon for maintenance and operation costs, administration fees and taxes',
and plus $0.27 per gallon for CNG Station depreciation/replacement charge'.
Payment by Elk Grove is due and payable upon receipt of Lodi's invoice and
delinquent if not paid in full within 15 -days of receipt.
2. The term of this Agreement shall be from September 1, 2007, through
December 31, 2008 ("Term").
3. Employees of Elk Grove 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
Elk Grove during the Term of this Agreement, Elk Grove agrees to reimburse the City for
all costs incurred by the City that are necessatyto return the CNG Facility to its condition
prior to the damage.
5. Elk Grove 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 & Facilities Manager or his designee. Elk Grove also
I Cost per therm X 1.278 + $0.20 maintenance& operation + $0.10 administration
+ $0.12 taxes = price per gallon of CNG fuel.
2 CNG Station Depreciation/Replacement Charge = + $0.27 per gallon of CNG
fuel.
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acknowledges and agrees that Lodi buses and fleet vehicles have priority to fuel at the
CNG Facility, and may move ahead of Elk Grove buses then fueling, if necessary, to
meet Lodi's fueling requirements. Should Elk Grove's fueling at the CNG Facility deplete
the storage and/or availability of fuel for Lodi buses and fleet vehicles, the number of Elk
Grove buses permitted to fuel may be limited. Lodi's Fleet & Facilities Manager or his
designee retain the sole discretion to limit the number of Elk Grove 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. Elk Grove 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 Elk Grove's use of the CNG Facility during
the Term of this Agreement
S. Upon execution of this Agreement, Elk Grove shall provide Lodi with
documentation confirming that contract employees of Elk Grove are to be considered
soley as employees of the City of Elk Grove 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 Elk Grove's current transportation contractor or any fufure
transportation contractorthat may be under contractwfth Elk Grove.
g, Elk Grove shall, at ifs 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 Elk Gmve'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. Elk Grove shall be able to furnish a
certificate of such insurance or evidence of coverage provided under any self-insurance
program maintained by Elk Grove immediatelyfollowing execution of this Agreement.
10. Elk Grove 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 sewed 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
Richard Prima, Public Works Director
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
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To Elk Grove: City of Elk Grove
Carlos Tobar, Transit System Manager
10250 Iron Rock Way
Elk Grove, CA 95624
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:
BLAIR KING
City Manager
ATTEST:
By
RANDIJOHL
City Clerk
APPROVED AS TO FORM:
By:
JANICE D. MAGDICH
Deputy City Attorney
CITY OF ELK GROVE
a municipal corporation
By:
JIM ESTEP
Interim City Manager
ATTEST.
PEGGY JACKSON
City Clerk
APPROVED AS TO FORM:
By:
SUSAN BURNS COCHRAN
City Attorney
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