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Home My WebLink About12-Facilities Management - , '- CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James Sharer, Director Subject: Resolution authorizing execution of a contract and Dept: Facilities Management issuance of a Purchase Order to Golden Acquisition Corp. d.b.a. EFS West for the Construction, Start-up Date: September 14,2006 and Commissioning of Liquefied Natural Gas/ Liquefied to Compressed Natural Gas (LNG/LCNG) Fueling Station at the City Yard in the City of San Bernardino per Plans and Special Provisions No.11842. MlCC Meeting Date: October 2, 2006 Synopsis of Previous Council Action: Approval of Grant applications and commitment to implementation schedule. Ratification for submittal of application for funds from SCAQMD $143,208 August 11, 2003 Resolution authorizing a contract between the City and the SCAQMD for the receipt of grant funds in the amount of $143,208 for construction of the LNG/LCNG Fueling Station at the Corporate Yard. December 6, 2004 Resolution authorizing a contract between the City and Gladstein, Neandross & Associates for preliminary engineering of the LNG/LCNG Fueling Station at the .c Corporate Yard. June 4, 2001 January 7, 2002 Recommended Motion: 1.) The City Council find the Weaver Electric Inc. bid nonresponsive. 2.) Adopt Resolution. 3.) Authorize the Director of Finance to amend the FY 2006-2007 Adopted budget and appropriate $400,200 from the Refuse Fund balance to account number 527-415-5193-7449 and appropriate $400,200 from the Sewer Fund balance to account number 132-431-5193-7449. In addition the Director of Finance is authorized to increase revenue and expenditures in account numbers 242-000-4658 and 242-362-5504-7449 in the amount of $91.200 for the additional CMAQ funds to be received for the project. ~;(J 3- _ ~ James W. Sharer Director of Facilities Management Phone: 384-5244 /J I Contact person: James Sharer Supporting data attached: Staff Report, Resolution Ward(s): FUNDING REQUIREMENTS: Amount: $2,14 1,500 c Source:: Various grants, Refuse and Sewer Funds as outlined in report. Nd. Jc1--- 10 / ~/Dfo c r '- CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT Resolution authorizing execution of a contract and issuance of a Purchase Order to Golden Acquisition Corp. d.b.a. EFS West for the Construction, Start-up and Commissioning of Liquefied Natural Gas/ Liquefied to Compressed Natural Gas (LNG/LCNG) Fueling Station at the City Yard in the City of San Bernardino per Plans and Special Provisions No.1 1842. BACKGROUND The South Coast Air Quality Management District has adopted various District Rules that mandate municipalities that operate fleets of medium and heavy-duty trucks must purchase vehicles that operate on alternative fuels such as Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG). The City has been successful in obtaining various grants totaling $1,125,900. Added to the grants was $124,100 form the Refuse Fund making the total budget $1,250,000 to fund the design and construction of a LNG/LCNG Fueling Station at the City Yard. The facility to store and dispense these fuels will be located at the Corporate Yard's existing fleet fueling station on Pershing Street. Due to the complexity of constructing an LNG/LCNG facility the council on December 6, 2004 approved the hiring of Gladstein, Neandross & Associates to perform the environmental and design work for the above project over the last 18 months. On July 5, 2006, the City received Authorization to Proceed with Construction from Caltrans and the project was advertised for bid. The City received bids from four firms to perform Construction, Start-up and Commissioning of Liquefied Natural Gas/ Liquefied to Compressed Natural Gas (LNG/LCNG) Fueling Station at the City Yard. The City's design consultant, Gladstein, Neandross & Associates has reviewed the bids and indicates Golden Acquisition Corp. d.b.a. EFS West is fully qualified for the project. Staff has confirmed the contractor's license, insurance, and references to determine the Contractor properly prepared for the project. Total project costs are estimated at $2,141,500 ($153,600 for design and $1,987,900 for construction.) Through various funding sources, the City currently has $1,250,000 budgeted for this project. At this time SANBAG can grant an administrative increase of 10% in the CMAQ funds, which will add $91,200.00 to our available funds. The remaining amount of $800,300 will come from both the Sewer and Refuse funds in the amount of $400,150 each. A budget amendment appropriating funds from both the Refuse and Sewer Fund balances will be required. The City will be pursuing partnerships with the County, and also that there will be future revenue C from fuel surcharges paid by outside users like the County. The County is planning to close the CNG fueling station they currently operate after the City station is operational. C Base bid totals for construction with desired alternative additions: c c Name of Bidder City Basic Bid Basic Bid + Additive Alternate Weaver Electric Inc. Anaheim $1,489,477.00 $1,664,844.00 Golden Acquisition Corp. Van Nuys $1,497,562.00 $1,728,657.00 d.b.a. EFS West General Physics Corp. Escondido $1,757,272.00 $1,956,194.00 ET Environmental Palm dale $1,847,155.00 $2, I 08,878.00 The Weaver Electric Inc. bid was found to be non-responsive by the City's consultant Gladstein, Neandross & Associates and therefore rejected. Weaver Electric Inc. did not meet the minimum qualifications set forth in the project specification. Weaver was offered several opportunities to clarify important parts of their bid package and proposed project team, particularly with regard to the engineering of this project; however, the consultant did not believe that Weaver's team could meet the qualifications on Section 2.0 (pages B-8 and B-9) of the City's bid document. "This shall include sealing of all cryogenic-mechanical designs by a California-registered mechanical engineer with a minimum of five years of demonstrated cryogenic systems experience in the design, fabrication and construction ofLNGILCNG containers, cryogenic equipment, and process and piping systems." Weaver has provided information in response to the consultant's questions seeking clarification on their bid that indicates that Alternative Fuel Systems will be used to meet this engineering experience. However, as Alternative Fuel Systems (AFS) was not identified within Weaver's original bid, the consultants do not believe that the City is allowed to accept this new information. The City must follow the California Department of Transportation's Local Assistance Procedures Manual to remain qualified for the CMAQ funds. In Chapter 15, Advertise and A ward Project the document states that "Negotiation with contractors, during the period following the opening of bids and before the contract shall not be permitted". This statement is the reason for the consultant's rejection of the new information. Therefore: Golden Acquisition Corp. d.b.a. EFS West is the lowest responsible bidder, and they meet all specifications of the bid. The alternates included in this price are: . A weights & measures approved LNG dispenser, in place of base LNG dispenser. . Three CNG storage vessels and appurtenances, in place of single base vessel. . A 3-bank CNG priority -fill valve pane, in place of I-bank CNG buffer valve panel. . 8-GPM duplex high-pressure LCNG pump and matching heat exchanger. . One-year maintenance agreement. c c t"""' '- Staff recommends awarding the base bid and alternative additional scope of work to Golden Acquisition Corp. d.b.a. EFS West for the amount of $1,728,657.00, and authorizing a 15% contingency of $259,243.00 to cover unforeseen conditions, making the total construction costs $1,987,900.00. Design costs (previously approved) are $153,600, making the total project budget $2,141,500.00. FINANCIAL IMPACT Total Project costs are estimated at $2,141,500. This Project is identified in the City of San Bernardino 2006-2007 Capital Improvement Program as project number GB04-04 using account # 527-415-5193-7449 & 242-362-5504-7449, in the amount of $1,250,000.00. The project is funded by a combination of funding sources including, CMAQ Grant - $911,800.00, AQMD Source Reduction Grant - $70,900.00, AQMD LNG Fueling Station Grant - $143,200.00, Refuse Fund ~ $124,100.00 totaling $1,250,000.00. Additional CMAQ funds in the amount of $91,200, plus $400,200 from the Refuse Fund balance and $400,200 from the Sewer fund balance will complete funding needs for this project (the Refuse and Sewer operations will be the primary users of this station.) A budget amendment appropriating funds from both the Refuse and Sewer Fund balances will be required as well as appropriating the additional $91,200 ofCMAQ funds. RECOMMENDA nON I.) Motion for the City Council to find Weaver Electric Inc. bid non-responsive. 2.) Adopt Resolution. 3.) Authorize the Director of Finance to amend the FY 2006-2007 Adopted budget and appropriate $400,200 from the Refuse Fund balance to account number 527-415-5193-7449 and appropriate $400,200 from the Sewer Fund balance to account number 132-431-5193- 7449. In addition the Director of Finance is authorized to increase revenue and expenditures in account numbers 242-000-4658 and 242-362-5504-7449 in the amount of $91,200 for the additional CMAQ funds to be received for the project. .--.. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c c RESOLt;TION NO. RESOLl'TION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A CONTRACT WITH AND ISSUANCE OF A PURCHASE ORDER TO GOLDEN ACQUISITION CORP. D.B.A. EFS WEST FOR THE CONSTRUCTION, START-UP AND COMMISSIONING OF A LIQUEFIED NATURAL GAS! LIQUEFIED TO COMPRESSED NATURAL GAS (LNG!LCNG) FUELING STATION AT THE CITY YARD IN THE CITY OF SAN BERNARDINO PER PLANS AND SPECIAL PROVISIONS NO. 11842. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION I. Golden Acquisition Corp. d.b.a. EFS West is the lowest responsible bidder for the Construction, Start-up and Commissioning of a Liquefied Natural Gas/ Liquefied to Compressed Natural Gas (LNG/LCNG) Fueling Station at the City Yard in the City of San Bernardino per Plans and Special Provisions No.11842. A Contract is awarded accordingly to said Contractor in a total amount of $1,728,657.00, with a contingency of $259,243.00. Such award shall be effective only upon said Contract being fully executed by both parties. All other bids, therefore, are hereby rejected. The Mayor is hereby authorized and directed to execute said Contract on behalf of the City; a copy of the Contract is on file in the office of the City Clerk and incorporated herein by reference as fully as though set forth at length. The Purchasing Manager is hereby authorized and directed to issue a purchase order which references this Resolution to said vendor. SECTION 2. Any amendment or modification thereto shall not take effect or become operative until fully signed and executed by the parties and no party shall be obligated hereunder until the time of such full execution. No oral agreements, amendments, Yl o. /}.. /tJ/~/~~ ...- \- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c c modifications or waivers are intended or authorized and shall not be implied from any act or course of conduct of any pany. This resolution is rescinded if the panies to the contract fail to execute it within sixty (60) days of the passage of this resolution. /1' ,/ 1/1 III ,r- '- r '- c 1 2 3 4 5 6 7 8 9 10 11 12 13 RESOLUTIO~ OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDIl\O AUTHORIZING THE EXECUTION OF A CONTR.\CT WITH AND ISSUANCE OF A PURCHASE ORDER TO GOLDEN ACQuISITION CORP. D.B.A. EFS WEST FOR THE CONSTRUCTION, START-UP AND COMMISSIONING OF A LIQUEFIED NATURAL GAS/ LIQUEFIED TO COMPRESSED NATURAL GAS (LNG/LCNG) FUELI!'IG STATION AT THE CITY YARD IN THE CITY OF SAN BERNARDINO PER PLANS AND SPECIAL PROVISIONS NO. 11842. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof. held on the day of , 2006, by the following vote, to wit: Council Members: NAYS ABSTAIN ABSENT AYES ESTRADA BAXTER VACANT 14 DERRY 21 22 23 24 25 26 ~.. :J 27 ;,-:7. / .' /<'.."" ( "..<',,~...r_ l'1a;iJes F. Peninan. City Attorney 28 J 15 16 17 18 19 20 KELLEY JOHNSON McCAMMACK Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of ,2006. Patrick J. Morris, Mayor . City of San Bernardino Approved as to fonn: