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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 18, 2014 <br />TITLE: <br />AGREEMENT WITH ARRO AUTOGAS <br />FOR PROPANE FUELING STATION <br />EQUIPMENT, FIVE -YEAR SERVICE <br />AGREEMENT, AND PROPANE FUEL <br />PURCHASE <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on I" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY MA AGER <br />RECOMMENDED ACTION <br />Authorize the City Manager and Clerk of the Council to execute an agreement with Arro Autogas, <br />subject to nonsubstantive changes approved by the City Manager and City Attorney, to: <br />Provide and install propane fueling station equipment at the Santa Ana Corporate Yard, in <br />an amount not to exceed $10,500; <br />2. Provide maintenance of the fueling station, in an amount not to exceed $4,950 annually, for <br />a period of five years commencing with the City's written acceptance of the fueling facility; <br />and, <br />3. Supply propane fuel in accordance with the agreement price proposal, also for a period of <br />five years commencing with the City's written acceptance of the fueling facility. <br />DISCUSSION <br />Approval of this recommended action will provide for Phase 1 of the Propane Fueling Station <br />project at the City Corporate Yard (Yard). The City's Facilities, Fleet, and Central Stores Division <br />(FFCS) adopted a Five -Year Energy Alternative Plan in February 2011, in an effort to continue and <br />expand the process of creating an environmentally responsible and sustainable operation. <br />Provision of a new propane fueling facility is in alignment with this plan. <br />In June 2013, the City released a Request for Proposals to establish a new propane fueling station <br />at the Yard. The Scope of Work consisted of three parts: (1) design and build of a propane fueling <br />facility; (2) a five -year service agreement; and (3) propane supply for the facility. The City received <br />one proposal which included a cost for the facility design -build component that far exceeded the <br />City's estimate. At the recommendation of staff, City Council rejected the bid on October 21, 2013. <br />To create a more competitive bidding climate for the project, staff issued separate RFPs for <br />25G -1 <br />