Title
RESOLUTION NO. 2014-014 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING TRANSPORTATION DEVELOPMENT ACT (TDA) ARTICLE 4.0 FUNDS IN THE AMOUNT OF $228,360 TO THE TRANSIT CAPITAL FUND FOR THE PURCHASE AND INSTALLATION OF A NATURAL GAS COMPRESSOR AND AWARDING A PURCHASE AGREEMENT TO TRUSTAR ENERGY (4/5 VOTE REQUIRED)
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
The City's Compressed Natural Gas (CNG) fueling station has been in operation since the middle of 2002. The station was built subsequent the direction of Council in 1998 to convert the Chula Vista Transit (CVT) fleet to 100% CNG fuel. This goal of having a 100% CNG fleet was reached in November 2009. The station also supports the City's CO2 reduction plan by fueling the City's growing CNG vehicle fleet. The two original CNG station compressors are now eleven (11) years old and in need of replacement. Since the two existing compressors are still in working order, Transit staff's plan is to replace one compressor, rebuild the one being replaced and keep it as a spare.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project as defined under Section 15378 of the State CEQA Guidelines because the proposed action involves continuing administrative/maintenance activities by the City of Chula Vista. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista maintains control of pre-consolidation, prior-year, Transportation Development Act funds. These funds are available to the City for operational and capital transit projects. The current available balances amount to approximately $667,000. These balances consist of $239,000 that is available in the Transit Capital Fund and $428,000 of funding from the County of San Diego. City Transit staff is recommending the use of these funds for the purchase and installation of a new CNG compressor. CVT uses 96% percent of the fuel compressed by the City's CNG station. The reliable and dependable operation of the equipment involved in the compression of the natural gas and fueling process is critical to the current and future provision of transit services; consequently, improving the City's CNG station's equipment becomes crucial to transit operations and to the City's goal of reducing CO2 emissions. For this reason, the Purchasing Division and Transit staff issued a Request for Proposals to replace an existing natural gas compressor. The upgrade consists of the following:
o Removal and replacement of one compressor; and
o Removal and replacement of electric motor
On November 17, 2013 a mandatory pre-bid meeting was held. The below mentioned firms attended, but only one submitted a bid proposal. Transit staff reviewed the proposal and made the necessary reference calls to verify TruStar's experience. Staff found TruStar to be a responsible firm. Below are the bid results for the equipment upgrade:
Firm |
Equipment Upgrade |
TruStar Energy |
$228,359.77 |
ANGI Energy Systems |
No Bid |
Clean Energy |
No Bid |
Trillium CNG |
No Bid |
Although TruStar Energy's bid was the only bid received it was lower than Transit Staff's estimated cost, $265k-$285k for the project.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The replacement of the CNG compressor supports various City Strategic Goals. Making sure that the CNG equipment remains operational and reliable supports the Operational Excellence goal, by implementing domestic, inexpensive and viable energy source to fuel the Transit buses. Fueling the Natural Gas bus fleet will contribute to the Connectivity of the Community and increase the Economic Vitality of the City by providing Transit trips that meet the shopping, medical, educational and employment needs of the residents and visitor of City. Additionally natural gas is lower in hydrocarbon emissions and contributes to a Healthy Community.
CURRENT YEAR FISCAL IMPACT
No General Fund impact - Approval of this recommendation will result in an appropriation in the amount of $228,360 from the available balance of Transit Capital Fund to the capital expenditure category of the Transit Capital Fund budget.
ONGOING FISCAL IMPACT
No ongoing fiscal impact - Ongoing operating and maintenance costs will be funded by San Diego Metropolitan Transit System MTS, TDA Article 4.0 funds.