AGENDA TITLE:
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Adopt a Resolution Authorizing Interim City Manager or Designee to Award the Contract to Lowest Responsive Bidder and Execute Change Orders for the Compressed Natural Gas (CNG) Compressor Procurement and Fueling Station Improvements ($1,700,000); and Appropriate Funds ($500,000) (PW)end
MEETING DATE:
May 6, 2026
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the Interim City Manager or designee to award the contract to lowest responsive bidder and execute change orders for the Compressed Natural Gas (CNG) Compressor Procurement and Fueling Station Improvements in a total amount not-to-exceed $1,700,000; and appropriate funds in the amount of $500,000.
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BACKGROUND INFORMATION:
The City operates 15 CNG vehicles (12 buses and 3 heavy-duty trucks). The CNG fueling station was originally built in 2001 with a backup added in 2007. Over the past few years the CNG fueling station has been degrading, with one compressor completely obsolete, and the other extremely unreliable. A recent major line leak disabled the main fuel island. While two temporary "slow-fill" dispensers are in use, the extended fueling times are disrupting operations. Additionally, the one functioning compressor is consistently going down, causing the fleet to have to scramble to fuel at other locations (such as Lodi Unified or the new Chevron CNG fueling station). This project will replace the obsolete compressors, dispensers, storage vessels, and controllers to restore full station functionality.
On October 1, 2025, the Council approved the project through two concurrent actions: (1) approval of plans and specifications and authorization to advertise for bids for Compressed Natural Gas (CNG) Fueling Station Improvements (excluding the compressor) in an amount not to exceed $500,000, and (2) approval of plans and specifications and authorization to advertise for bids for the CNG Fueling Station Improvements, including the compressor, in an amount not to exceed $700,000. These actions were intended to reduce schedule impacts associated with the compressor’s long lead time.
The bid opening for the compressor procurement was held on November 19, 2025, and no bids were received. On November 20, 2025, a non-responsive bid from EFS West was received. After fulfilling Public Contract Code requirements, staff informally solicited proposals and reviewed EFS West’s bid of $742,903, which exceeded the authorized amount by $242,903. Staff then requested an additional proposal from ANGI Energy Systems LLC, received December 5, 2025, in the amount of $885,592, exceeding the authorized amount by $385,592.
As the anticipated time savings was no longer achievable, the City advertised the CNG Fueling Station Improvements project on March 24, 2026, including the compressor procurement in the scope of work, with bids scheduled to open on April 22, 2026. Due to higher than anticipated costs, staff recommends increasing the total contract authority by $500,000, for a revised not-to-exceed amount of $1,700,000 ($500,000 compressor + $700,000 improvements + $500,000 additional allocation).
FISCAL IMPACT:
The new CNG improvements will decrease ongoing maintenance costs associated with the station, as the system will be reliable and will reduce the frequency of our maintenance contractor being called-out. Additionally, there will be a reduction in fuel costs, as the City pays a higher price when needing to fuel at Lodi Unified or Chevron’s CNG stations (when ours is down).
FUNDING AVAILABLE:
Fiscal Year 2025/26 Budget:
Transit Capitol 60199000.77020 (PWTR-25002) $1,213,400
Requested Appropriation 60199000.77020 (PWTR-25002) $ 500,000
TOTAL AVAILABLE: $ 1,713,400