Agenda Item Wording:
title
Adjust the Not To Exceed amount on Trillium Contract. Authorize staff to adjust the contract terms from the not to exceed $150,000 annually previously approved by the City Council up to and not to exceed $350,000 annually.
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Deadline for Action: 5/6/2024
Submitting Department: Administration - Transit Division
Contact Name and Phone Number:
Angelina DeRossett, Transit Manager, Angelina.DeRossett@Visalia.City (559) 713-4591
John Lollis, Assistant City Manager, John.Lollis@Visalia.City, (559) 713-4323
Department Recommendation:
Staff requests that City Council authorize the Trillium contract be increased not to exceed $350,000 on an annual basis.
Background Discussion:
The Compressed Natural Gas (CNG) station located at the Transit Operations and Maintenance Facility at 525 North Cain Street in Visalia is owned and maintained by the City’s Transit Division. The Transit Division directly operates a fleet of forty-five (45) CNG buses from the Facility. The CNG station includes a public access fueling station which is accessible twenty-four (24) hours per day, seven days per week. Additionally, the fueling station supplies an adjacent slow-fill system for fueling the City’s Solid Waste fleet of approximately sixty (60) vehicles.
At its meeting on October 16, 2023, the City Council approved the City Manager to enter into a contract with Trillium for the Management and Maintenance of the CNG station, management of the Low Carbon Fuel Standard (LCFS) credits, Electric credits, and ensure the supply of CNG to the station for an initial term of three years with the option to renew for two consecutive one-year periods up to a total of five years. Funding for these contracts are pre-existing within the current operational budget.
At the time of award, staff had planned to keep the incoming monies from the LCFS and Energy credits combined with the outgoing cost of the CNG station maintenance as an offset with a contract payout to Trillium, not to exceed $150,000 per year. Since that time, staff has determined that the accounting of the contract will be improved if the costs are not treated as an offset and are therefore kept in separate accounts. This means that staff could pay out up to $350,000 per year to Trillium for station maintenance, exceeding the not to exceed amount of $150,000 previously approved by City Council. The difference that Transit receives in credits will go separately into a revenue account for the CNG station.
Fiscal Impact:
The contract associated with this report is an ongoing and budgeted annual expense in the 4551 Transit Operations account.
Prior Council Action:
10/03/2005 Award of Design/Build Contract to Pinnacle CNG (Trillium before name change) for 10-year Maintenance Contract.
01/05/2015 Award to GHI Energy for Fuel Procurement and Participation in the LCFS Credits Program.
11/20/2017 Contract Award to Trillium for Station Maintenance and Operation.
10/16/2023 Contract Award to Trillium for Station Maintenance and Operation.
Other:
N/A
Alternatives:
Do not authorize the modification to contract terms and maintain the annual not to exceed amount of $150,000.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize staff to pay Trillium for the CNG station operations and maintenance not to exceed $350,000.00 annually.
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Environmental Assessment Status:
N/A
CEQA Review:
N/A
Attachments:
None