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Amend Agreements for CNG Station <br />December 20, 2022 <br />Page 3 <br />3 <br />1 <br />3 <br />0 <br />capture a percentage of the CARB and EPA annual credits valued at $0.67 per gasoline <br />gallon equivalent (GGE), and fund the capital improvements with City funds. <br />The amended Maintenance Agreement (Exhibit 3) allows for a fully maintained and <br />warrantied RNG dispensing station as well as maintaining the public-facing station and <br />facilitating the administration of credit card transactions. <br />Staff recommends amending the Design-Build Agreement, RNG Dispensing <br />Agreement, and Maintenance Agreement with OPAL Fuels Station Services, LLC to <br />better serve the renewable natural gas fueling needs of both the City and the community <br />at large. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with the actions. However, according to the <br />California Air Resources Board and the United States Environmental Protection Agency, <br />the use of CNG vehicles and RNG in place of gasoline or diesel has an immediate positive <br />impact on air quality by reducing greenhouse gas emissions. <br />FISCAL IMPACT <br />Design-Build Agreement: Funds identified for the design and construction portions of this <br />project totaling $4,972,151, including the requested appropriation adjustment, are shown <br />below. Water and Sewer Enterprise Funds used for this portion of the project will be <br />budgeted in future fiscal years and will be recovered through exclusion of the standard <br />fuel markup incurred by other City departments or sections. <br />Fiscal <br />Year <br />Accounting <br />Unit <br />Fund <br />Description <br />Accounting Unit, <br />Account Description Amount <br />2022-23 03117101- <br />66220 <br />Air Quality <br />Improvement <br />Fleet Services-Air <br />Quality Improvement, <br />Improvements Other <br />Than Buildings <br />$1,138,300 <br />2023-24 06017641- <br />66400 Water Water Maintenance, <br />Machinery & Equipment $3,333,851 <br />2023-24 05617640- <br />66400 <br />Sanitary <br />Sewer <br />Service <br />Sanitary Sewer Service, <br />Machinery & Equipment $500,000 <br />Total $4,972,151 <br />Maintenance Agreement: The five-year operation and maintenance agreement, with one, <br />five-year renewal option, will be budgeted in the fiscal year in which the City anticipates <br />the construction will be completed and appropriated in future fiscal years as shown below. <br />Revenue from the sale of RNG credits, estimated be $50,920 per year at $0.67 per GGE, <br />will help offset the maintenance costs and will be received into Stores & Property Control <br />revenue account 07617002-56001.