To: Board of Supervisors
Department or Agency Name(s): Transportation and Public Works
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2231
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Sonoma County Transit - Agreement with Natural Gas Systems, Inc., for Compressed Natural Gas (CNG) Fueling System Maintenance Services
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Recommended Action:Recommended action
The Department of Transportation and Public Works, Transit Division, is requesting approval for an agreement with Natural Gas Systems, Inc., for a five-year period beginning July 1, 2022 through June 30, 2027, with updated pricing for services and an increase of $12,000 annually for additional repairs anticipated as the CNG compression and dispensing equipment age, for a not to exceed annual amount of $163,000 for fiscal years 2022/23, 2023/24 and 2024/25 and $173,400 for fiscal years 2025/26 and 2026/27.
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Executive Summary:
Since 1995, Sonoma County Transit has operated a compressed natural gas (CNG) fueling facility at its yard in southwest Santa Rosa. The facility requires ongoing maintenance attention to ensure safe and reliable operation necessary to meet daily service requirements of Sonoma County Transit’s fleet of CNG powered buses. Sonoma County Transit has the only large commercial CNG slow-fill fueling facility in the San Francisco Bay Area. Therefore, it’s essential that the CNG fueling system operates reliably, as there is no other comparable facility to go in the event of a compressor failure.
In early 2019, Sonoma County Transit begin transitioning its fleet from CNG to battery-electric buses. Currently, the fleet has three battery-electric buses. Six additional buses are on order and expected to arrive within the next 15 months. Although the County’s CNG fleet will be declining as the transition to zero-emission buses moves forward, the CNG fleet will continue to be the dominant form of fuel used by Sonoma County Transit projected through 2030.
Discussion:
Sonoma County Transit has contracted with Natural Gas Systems, Inc. (NGS) since 1996 to provide preventive maintenance and on-call repair services for its CNG fueling facility. During this time, the system has performed reliably despite increased daily usage from an expanded CNG powered fleet. Few vendors within the state have the expertise required to maintain a CNG facility and provide the responsiveness that Sonoma County Transit requires. NGS’ rates are competitive for the level of service, commitment, and expertise provided. Sonoma County Transit has been satisfied with NGS services and wishes to continue to contract with NGS to best ensure continuity of operations. Due to the consistent and reliable services provided by NGS, Sonoma County Transit has never missed a day of service due to its inability to fuel its fleet.
NGS’ base-labor rate of $105 per hour is less than what Sonoma County Transit currently pays for outside engine repair work conducted by local vendors. Local Bay Area shops change between $195 and $210 per hour.
In addition to weekly preventative maintenance inspections, NGS provides on-call service to Sonoma County Transit 24 hours a day, seven days a week to cover repairs, emergencies, and other as-needed work.
The recommend agreement allows for a $78,000 annual expense in fiscal years 2022-23, 2023-24 and 2024-25 for weekly maintenance of the existing compressors and related equipment
An additional $85,000 annual contingency is provided for on-call repair services and parts necessary for all NGS-maintained equipment at Sonoma County Transit. The provided contingency will allow NGS to proceed with repairs when necessary, upon authorization from the County Transit Systems Manager.
In fiscal years 2025-26 and 2026-27, the recommended agreement increases the rate for monthly preventive maintenance to $88,000 annually and the allowance for contingency work remains at $85,000 annually for a total not to exceed of $173,400 on an annual basis.
County Purchasing reviewed this request and has approved a single source waiver for the agreement in accordance with Sonoma County code 2-58.
Strategic Plan:
N/A
Prior Board Actions:
5/14/19 - Board Approved Amendment No. 1 with Natural Gas Systems for CNG Fueling System Maintenance Services (cost for scheduled and contingency not to exceed $139,430 annually.)
5/17/2016 - Board approved agreement with Natural Gas Systems for CNG Fueling System Maintenance Services (cost for scheduled services and contingency not to exceed $129,430 annually) for the period of July 1, 2016 through June 30, 2019.
05/21/13 - Board approved Amendment No. 1 to Agreement with Natural Gas Systems to continue compressed natural gas (CNG) fueling system maintenance services for a three-year period beginning July 1, 2013 thru June 30, 2016, not to exceed $129,430 annually.
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
|
$163,000 |
$163,000 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
$163,000 |
$163,000 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
$163,000 |
$163,000 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
|
$163,000 |
$163,000 |
Narrative Explanation of Fiscal Impacts:
Annual costs for this Agreement are anticipated at $163,000. Future costs will be requested as part of the FY 2022-23 Recommended Budget. Maintenance services are an operating cost funded by fare revenue and Transportation Development Act funds.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
None.
Related Items “On File” with the Clerk of the Board:
Agreement.