SUBJECT/RECOMMENDATION:
Title
Approve a Purchase Order for ANGI, Inc. of Janesville, WI, in the amount of $995,000 for the purchase of a mobile compressed natural gas unit, pursuant to Code of Ordinances Section 2.564 (1)(b)Sole Source, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Clearwater Gas System (CGS) has had numerous mechanical problems with the primary engine-driven compressor unit at the compressed natural gas (CNG) filling station, located at 1020 N Hercules Ave, Clearwater. This compressor unit was purchased from Universal Air and Gas Products, Inc., located in Norfolk, VA during the initial construction of the CNG station in 2011. As a result of mechanical failures, CGS has used a 3rd party vendor, Ultimate CNG, to provide mobile CNG refueling services. This service has been very costly as CGS waits for repair parts to be manufactured and shipped.
Purchasing the ANGI mobile unit will give CGS the ability to provide the same service Ultimate CNG has provided in the past. In addition, the mobile unit will allow fueling at any remote location where natural gas is available. The unit will reside at the CNG filling station when not utilized for remote fueling.
CGS is currently in the process of standardizing all compression equipment with ANGI compressors. Per Section 2.564 (1)(b), Code of Ordinances, ANGI, Inc. is the sole source provider, as they are the manufacturer of this equipment. Standardization of equipment minimizes the amount of repairs parts needed in the CGS warehouse and will streamline employee training on daily operations and maintenance of the CNG equipment. In addition, all ANGI compressors and parts are manufactured in the United States. As a result, any parts not on hand in the internal warehouse would be readily available from the manufacturer, as many CNG stations across the country have installed ANGI equipment.
Purchasing the mobile compressor is the first step in the upgrades to the Hercules CNG filling station. The next step will be to issue a Request for Proposal for the appropriate upgrades to support the CNG station requirements over the next 10 years.
APPROPRIATION CODE AND AMOUNT:
A first quarter budget amendment will transfer $950,000 of gas revenues from capital project 96391, Gas System - Pasco Building Funds to capital improvement project 96387, Natural Gas Vehicle, to fund this contract.
USE OF RESERVE FUNDS: N/A