SUBJECT/RECOMMENDATION:
Title
Approve an increase to Purchase Order No. 18001102 with Ultimate CNG, LLC in the amount of $84,800, for the period March 30, 2019 through April 26, 2019, to provide mobile compressed natural gas services at the Clearwater natural gas filling station and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Ultimate CNG, LLC is currently providing temporary Compressed Natural Gas (CNG) refueling services, via a mobile CNG storage truck, at the 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 second Agreement, in the amount of $197,600. A third increase was approved by City Council on October 18, 2018, in the amount of $74,100. Agreement # 4 and # 5 were approved on January 17, 2019 in the amount of $324,800. Agreement #6 was approved on March 2, 2019 in the amount of $84,800.
Staff is now requesting for Council to extend their services for the period starting March 30, 2019 through April 26, 2019, under Service Agreement #7.
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. This increase will set the total amount of the Purchase Order to $865,815.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in 4232078-531300.