REPORT TO THE CITY COUNCIL FROM: GREGORY A. BARFIELD, M.A., Director Transportation BY: ORIE RUBALCAVA, Projects Administrator Department of Transportation SUBJECT ..Title Actions pertaining to the emergency reconstruction of the compressed natural gas fueling station: 1. Adopt Environmental Assessment No. P24-1046 dated August 15, 2024, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines 15301/Class 1. 2. ***RESOLUTION-- Approval of an urgent necessity for the preservation of life, health, property, and authorizing the City Manager or designee to enter into agreement without competitive bidding with Chart International, Inc. for emergency reconstruction of the compressed natural gas fueling station (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends City Council adopt Environmental Assessment No. P24-1046, dated August 15, 2024, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines 15301/Class 1; and approve a Resolution declaring an urgent necessity for the preservation of life, health, property, and authorizing the City Manager or designee to enter into agreement with Chart International, Inc. (Chart) without competitive bidding for emergency reconstruction of the compressed natural gas (CNG) station. EXECUTIVE SUMMARY The Department of Transportation/Fresno Area Express (FAX) owns and operates a CNG fueling station. The CNG fueling station supports the daily operation of over 120 transit buses, municipal fleet, waste management fleet, and other private customers. On average, this critical equipment dispenses 2.9 million therms annually into motor vehicles. Due to a combination of extreme heat and end of life equipment, key components of the station have failed and created conditions that threaten life, health, and property. A Declaration of Urgent Necessity is now necessary for the preservation of the health and safety of the surrounding area. The Resolution will allow FAX to procure services from Chart, Inc. without advertising for competitive bids in order to make the necessary emergency reconstruction, which is estimated at an amount not to exceed $3,913,077. BACKGROUND FAX owns and operates a CNG fueling station. The CNG fueling station supports the operation of over 120 transit buses, municipal fleet, waste management fleet, and other private customers. On average this critical equipment dispenses 2.9 million therms annually into motor vehicles. Due to a combination of extreme heat and end of life equipment, key components of the station have failed and created conditions that threaten life, health, and property. FAX's station includes one (1) IMW compressor unit, one (1) storage unit, one (1) dryer, two (2) Greenfield compressor units, three (3) Greenfield dispensers, one (1) priority panel, and associated electrical equipment. Much of the equipment is end of life, making it difficult to maintain the site. All surplus parts and reuseable or salvageable parts have been exhausted, thereby giving FAX limited capability to repair the existing equipment. Currently, the priority panel which directs compressed gas to the storage tanks and dispensers has ruptured fittings, along with a compressor unit with degraded seals. This combination creates conditions that endanger life, health, and property. The CNG station is compromised, and complete failure would have adverse impacts on transit operations and impact external customers such as municipal fleet, waste management fleet, and other private customers. The circumstances create an urgent need whereby a delay due to competitive solicitation cannot be permitted. The Federal Transit Administration (FTA) permits other than full and open competition in circumstances such as this. Design build services work well on medium sized construction projects, technically complex construction projects, and when speed of completion is required. This process provides the best opportunity for FAX to address the emergency, define functional performance, obtain best value, and execute the project alongside industry experts in an expeditious manner. Chart was awarded a maintenance contract with FAX for the CNG station on April 18, 2024. Furthermore, on July 25, 2024, the City Council approved an agreement between Chart and General Services Department for maintenance services for the liquid natural gas (LNG) station. Chart has a great deal of experience in providing services for natural gas stations and strong references from agencies of a similar size and larger than FAX, such as the City of Los Angeles. Chart's recent history with the City and long history with other California agencies provides assurances in the ability of Chart to carry out the emergency design and construction of FAX's CNG station. The City Attorney has reviewed the Agreement and approved it to form. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment of the project and determined that it falls within the Categorical Exemptions set forth in CEQA Guidelines, Section 15301 under Class 1, Section 15301(b) (Existing facilities of both investor and publicly-owned utilities) and Section 15301(d) (Restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety), because this Project involves the rehabilitation of an existing structure which has deteriorated to a point where it requires repairs, in order to uphold public health and safety standards. The proposed project is consistent with Class 1 exemption because the project involves emergency repair and rehabilitations of an existing structure which has deteriorated to a point where it requires repairs, in order to uphold public health and safety standards. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because this action is being performed on an emergency basis. FISCAL IMPACT There is no impact to the general fund for this action. This work will be funded primarily by FTA Program 5339 funds, with FAX enterprise funds used as local match. All funds for this work are already budgeted and available in the FY25 FAX capital budget. Attachments: Environmental Assessment No. P24-1046 Resolution of Urgent Necessity