REPORT TO THE CITY COUNCIL October 8, 2015 FROM: BRIAN R. MARSHALL, Director Department of Transportation BY: JOSEPH AYERZA, Fleet Manager Fleet Management Division SUBJECT ..Title Award a purchase contract in the amount of $2,298,049.65 to Clean Energy for the purchase of liquid natural gas (LNG) fuel - Bid File 9294 ..Body RECOMMENDATION Staff recommends Council award a purchase contract in the amount of $2,298,049.65 for the purchase of LNG fuel. EXECUTIVE SUMMARY The Department of Transportation, Fleet Management Division is seeking to establish a requirements contract for LNG fuel to be used by the Department of Public Utilities within the City of Fresno. The LNG fuel will be used to power the City-owned refuse trucks that are used daily to collect household trash, green waste, recyclables, and neighborhood clean-up of solid waste material. BACKGROUND The use of LNG fuel to power the City refuse truck fleet provides 40 percent lower ozone forming emissions and 20 percent lower greenhouse gas emissions. The new contract for LNG fuel will utilize renewable natural gas (RNG) from solid waste landfills and waste water treatment facilities. The RNG is processed and purified to pipeline quality standards, then placed in the interstate natural gas pipeline. Once in the pipeline, it can be utilized to produce the LNG. A competitive bid was prepared and distributed to perspective proposers. Two responses were received in a public opening on June 9, 2015. The proposal from Clean Energy was selected as the proposal that best met the City's needs. Its proposal was deemed both responsive and responsible and it was the low bidder. Council may award a purchase contract to Clean Energy located in Seal Beach, California, for the amount of $2,298,049.65 or the Council may reject the proposal. If the proposal is rejected, the project will be re-bid resulting in a delay of approximately 60 days. ENVIRONMENTAL FINDINGS This is not a "project" pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference was not applied because no local companies submitted bids. FISCAL IMPACT Funds for the purchase of the LNG fuel were included in the FY16 adopted budget under the operations of the Fleet Management Division. Attachment: LNG Products Requirement Contract