SUBJECT/RECOMMENDATION:
Title
Ratify and confirm an increase to Purchase Order No. 18001102 with Ultimate CNG, LLC in the amount of $197,600, for the period November 24, 2018 through January 18, 2019; approve an increase with Ultimate CNG in the amount of $127,200, for the period January 19, 2019 through March 1, 2019, to provide mobile compressed natural gas services at the Clearwater natural gas filling station and authorize the appropriate officials to execute same.
Body
SUMMARY:
Ultimate CNG, LLC is currently providing temporary Compressed Natural Gas (CNG) refueling services, via a mobile CNG storage truck, at our CNG Filling Station located at 1020 North Hercules Avenue. This purchase order was originally approved by the City Manager in August 2018, in the amount of $99,715 and a 2nd Agreement, in the amount of $197,600, for a total amount of $297,315. These two agreements were ratified and confirmed by City Council on September 6, 2018. A third increase was approved by City Council on October 18, 2018, in the amount of $74,100.
Staff is now requesting for Council to extend their services for the period starting November 24, 2018 through March 1, 2019. Services under Agreement 4 would end on January 18, 2019 and Services under Agreement 5 would start on January 19, 2019 through March 1, 2019.
The reason for the increase is a result of the primary CNG compressor experiencing a mechanical failure after a repair was made in August. Additional parts failed after the repair was completed and now those parts need to be replaced. The parts are currently on order and waiting on them to be manufactured and shipped. The compressor was originally manufactured in England, UK and several of the parts needed are not available in the USA. These two increases will set the total amount of the Purchase Order to $696,215.
USE OF RESERVE FUNDS:
Funds are budgeted and available in 4232078-531300.