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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 21, 2013 <br />TITLE: <br />REJECT THE PROPOSAL FOR A NEW <br />PROPANE FUELING STATION AT THE <br />SANTA ANA CORPORATE YARD <br />(PROJECT NO.111300) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1" Reading <br />? Ordinance on 2ntl Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Reject the proposal for the new propane fueling station, service agreement, and propane supply at <br />the Corporate Yard. <br />DISCUSSION <br />Rejecting the one bid that was submitted authorizes the closure of this current bid cycle and allows <br />staff to re-bid or re-scope the project so that the City receives competitive pricing within available <br />funds. The City of Santa Ana Corporate Yard was constructed in 1994 with gasoline and diesel <br />fueling stations. In response to the availability and growing popularity of alternative fuels, <br />compressed natural gas and hydrogen fueling stations were later added. In February 2011, Fleet <br />Services prepared the City of Santa Ana Green Facilities, Fleet and Central Stores Strategic Plan <br />(Strategic Plan) in an effort to continue and expand the process of creating environmentally <br />responsible facilities, fleet, and stores operations. The provision of alternative fuels and fuel <br />efficiency are the cornerstones of this plan. <br />In 2012, Fleet Services was successful in receiving Clean Transportation funding through the <br />Mobile Source Air Pollution Reduction Review Committee (MSRC), in the New Expanded or <br />Upgraded Alternative-Fuel Infrastructure category to install a propane fueling station. Through the <br />provision of this alternative fuel, the City could continue progress toward the goals of the Strategic <br />Plan. <br />On June 19, 2013, a Request for Proposals (RFP) was published via the City website, e-mail, and <br />an online planning room. The Scope of Work consisted of three parts: (1) design and build a <br />propane fueling facility, including concrete work, fencing, tank, dispensing unit, and related <br />infrastructure; (2) a five-year service agreement; and (3) a propane supply. Although two Letters of <br />Intent had been received prior to publishing the RFP, only one proposal was received. The <br />proposal received was submitted by Arro Autogas for a lump sum cost of $205,000 for the design- <br />build component of the project. This exceeded the Engineer's Estimate of $80,000. <br />23A-1