SUBJECT/RECOMMENDATION:
Title
Ratify and confirm an increase to the Purchase Order with Trillium Transportation Fuels, LLC dba Trillium CNG (Trillium) of Houston TX for the maintenance, remote monitoring, diagnostics, and repair services of the compressed natural gas (CNG) stations in the amount of $15,575.74 bringing the total purchase order amount for year one ending November 30, 2025 to $130,575.74 pursuant to ITB 61-24, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Clearwater Gas System Energy (CGS Energy) operates two Compressed Natural Gas (CNG) fueling stations, one located on Hercules Avenue and the other at the Solid Waste Transfer Station on Old Coachman Road. On December 5, 2024, City Council approved a purchase order with Trillium for maintenance, remote monitoring, diagnostics, and repair services for both stations in an annual not-to-exceed (NTE) amount of $115,000.00. The contract term runs through November 30, 2025, with three one-year renewal options.
The contract includes a monthly maintenance and monitoring fee of $6,750.00, totaling $81,000.00 annually, along with $34,000.00 allocated for parts and incidental repairs for both stations.
During the current contract period ending November 30, 2025, the total expenditure has reached $130,575.74 due to unanticipated repairs and additional service callouts. These increased costs were driven by unplanned station shutdowns, operational disruptions, safety system faults, and required preventive maintenance. Multiple service responses were necessary to address full and partial station shutdowns, fueling interruptions, and recurring compressor-related issues, including motor performance and electrical failures that ultimately required a rebuild of the Hydraulic Intensifier Compressor (HyC) system.
Summary of Repair Costs and Service:
• Compressor gas detector replacements: $23,041.87
• Hydraulic Intensifier Compressor (HyC) rebuild: $6,258.24
• Consumables (oil, fuses, O-rings): $2,426.80
• Fueling issue service callouts at pumps: $4,903.15
• HyC service callouts: $5,310.18
• Skid A compressor service callouts: $3,581.00
• Skid B compressor service callouts: $4,054.50
Total repair and service costs: $49,575.74
These repairs were necessary to maintain system reliability, ensure safety compliance, and support uninterrupted fueling operations. As a result, this agenda item requests ratification in the amount of $15,575.74 to fully cover the expenses incurred by CGS Energy for these repairs.
USE OF RESERVE FUNDS:
Funding is budgeted and available at 3237323-530300-96387 (Natural Gas Vehicle)
STRATEGIC PRIORITY:
Deliver effective and efficient services by optimizing City Assets and Resources.
1.2, 1.3.
