HomeMy WebLinkAbout25G - AGMT - PROPANE FUELINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 18, 2014
TITLE:
AGREEMENT WITH ARRO AUTOGAS
FOR PROPANE FUELING STATION
EQUIPMENT, FIVE -YEAR SERVICE
AGREEMENT, AND PROPANE FUEL
PURCHASE
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on I" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MA AGER
RECOMMENDED ACTION
Authorize the City Manager and Clerk of the Council to execute an agreement with Arro Autogas,
subject to nonsubstantive changes approved by the City Manager and City Attorney, to:
Provide and install propane fueling station equipment at the Santa Ana Corporate Yard, in
an amount not to exceed $10,500;
2. Provide maintenance of the fueling station, in an amount not to exceed $4,950 annually, for
a period of five years commencing with the City's written acceptance of the fueling facility;
and,
3. Supply propane fuel in accordance with the agreement price proposal, also for a period of
five years commencing with the City's written acceptance of the fueling facility.
DISCUSSION
Approval of this recommended action will provide for Phase 1 of the Propane Fueling Station
project at the City Corporate Yard (Yard). The City's Facilities, Fleet, and Central Stores Division
(FFCS) adopted a Five -Year Energy Alternative Plan in February 2011, in an effort to continue and
expand the process of creating an environmentally responsible and sustainable operation.
Provision of a new propane fueling facility is in alignment with this plan.
In June 2013, the City released a Request for Proposals to establish a new propane fueling station
at the Yard. The Scope of Work consisted of three parts: (1) design and build of a propane fueling
facility; (2) a five -year service agreement; and (3) propane supply for the facility. The City received
one proposal which included a cost for the facility design -build component that far exceeded the
City's estimate. At the recommendation of staff, City Council rejected the bid on October 21, 2013.
To create a more competitive bidding climate for the project, staff issued separate RFPs for
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Agreement with Arro Autogas for Propane Fueling Station Equipment,
Five -Year Service Agreement and Propane Fuel Purchase
March 18, 2014
Page 2
dispenser installation and maintenance, and fuel supply (Phase 1 RFP), and design -build of the
required site improvements (Phase 2 RFP).
The Phase 1 RFP was posted on the City website December 3, 2013. Although seven companies
attended the pre - proposal job walk and submitted Letters of Intent, only one proposal was received
from Arro Autogas on January 9, 2014. The proposal was evaluated by the FFCS Manager and
PWA Design Engineering staff, and an on -site interview was conducted. Staff has determined that
the fee for the proposed Scope of Work is reasonable and appropriate, and recommends that the
contract be awarded to Arro Autogas. After the agreement with Arro Autogas is executed, staff will
issue the Phase 2 RFP.
ENVIRONMENTAL IMPACT
Environmental Review No. ER- 2014 -11 has been completed and a Notice of Exemption has been
filed pursuant to the California Environmental Quality Act.
FISCAL IMPACT
Air Quality Management District - Mobile Source Air Pollution Reduction grant and AB2766
subvention funds will be used for the installation of the fueling equipment. These funds are
available in the Fleet Services Air Quality Improvement Fund (Account 03110101 - 66220, Project
11- 1300). Propane station maintenance and propane supply will be charged to the Stores and
Property Control Fund (Account 07610102 -62300 and Account 07610102 - 63302, respectively).
APPROVED AS TO FUNDS AND ACCOUNTS:
Edwin "William" Galvez, P.E. Francisco Gutierrez
Interim Executive Director Executive Director Finance & Management
Public Works Agency Services Agency 9
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Exhibits: 1: Location Map
2: Agreement
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EXHIBIT 1
IN
SANTA ANA CITY COUNC I L Ella
AGENDA
P WA DATE, PROJECT (11.1300) PROPANE FUELING
l
March 18, 2014 STATION AT CORPORATE YARD
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AGREEMENT FOR PROVISION OF
EQUIPMENT AND COMMODITY
PROPANE FUELING STATION
THIS AGREEMENT, made and entered into this 4th day of March, 2014 by and between San Luis
Butane Distributors, dba Arro Autogas, a California corporation (hereinafter "Contractor"), and the City of Santa
Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the
State of California (hereinafter "City ").
RECITALS
1. The City desires to retain a Contractor having special skill and knowledge in the field of Propane
Fueling Station Equipment, Facility Servicing, Propane Supply and Distribution.
2. Contractor represents that Contractor is able and willing to provide such services to the City and is
licensed by the State of California to provide Propane Fueling Station Servicing, Propane Supply and
Distribution.
3. In undertaking the performance of this Contract, Contractor represents that it is knowledgeable in its
field and that any services performed by Contractor under this Contract will be performed in
compliance with such standards.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and
conditions hereinafter set forth, the parties agree as follows:
SCOPE OF SERVICES
Contractor shall 1) provide and install a propane fueling station at the Santa Ana Corporate Yard; 2)
provide maintenance of the fueling station; and 3) supply the propane commodity, as set forth in RFP
13 -012 "Propane Fueling Station ", attached hereto as Exhibit A, and incorporated by this reference.
Contractor shall provide specifications for the tank to be provided, and shall assist with the coordination
and approval of site work necessary to accommodate the propane fuel facility.
I1. CONTRACT DOCUMENTS
This Contract consists of this Agreement, the Special Provisions set forth in Exhibit A and the
Maintenance specification attached hereto as Exhibit B.
Ill. OWNERSHIP OF DRAWINGS, SPECIFICATIONS, PROGRAMS AND SYSTEMS
Contractor's contribution to the Project, including drawings and specifications to be produced by
Contractor hereunder, will not infringe or misappropriate the proprietary or personal rights of any third
person or party. Any and all records, papers, drawings, specifications, programs, systems and other
materials prepared by Contractor pursuant to this Contract shall be the property of City. Contractor
agrees to provide City with any such materials upon request of City.
IV. TERM
The term of this contract shall commence on the date of award by City Council, however, no work shall
commence until all required bonds and insurance certificates have been approved by the City Attorney.
The installation contract shall terminate upon the City's delivery to Contractor of written acceptance of
the propane fueling station, at which time the five year maintenance and fuel delivery term shall
commence.
V. COMPENSATION
a. City agrees to pay and contractor agrees to accept as total payment for its services:
1. Provision of the propane tank(s), consultation services necessary to ensure the facility is built to
accommodate Contractor's equipment, and installation of the equipment, a total of $10,500.
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2. Maintenance and Repair services shall be provided at the rate of $412 per month. Said charges
shall not exceed $4,950.00, annually, during the term of this agreement.
3. Commodity purchase shall be charged as set forth in Contractor's February 5, 2014 letter,
attached hereto as Exhibit B, setting forth the agreed method of setting the propane price.
b. Invoices
1, The contractor shall submit a monthly invoice by the fifteenth of the month to the City for the
services rendered in the prior month.
2. All invoices for work performed under this contract shall be submitted in a format approved by the
City. Invoices shall include the following information at a minimum:
i. Contractor's invoice number
ii. Beginning and ending dates for services
iii. City project number andfor name (if applicable)
iv. Work site address/location (if applicable)
V, Unit cost, subtotals and total for invoice
3. Payment by City shall be made within forty -five (45) days following receipt of proper invoice, subject
to City accounting procedures. Payment need not be made for work which fails to meet the
standards of performance of a professional parking control enforcement services.
VI. INDEPENDENT CONTRACTOR
Contractor shall during the entire term of this contract, be construed to be an independent
contractor and not an employee of the City. This contract is not intended nor shall it be construed to
create an employer - employee relationship, a joint venture relationship, or to allow the City to exercise
discretion or control over the manner in which contractor performs the services required by this
contract. However, the services to be provided by contractor shall be provided in a manner consistent
with all applicable standards and regulations governing such services. Contractor shall pay all salaries
and wages, employer's Social Security taxes, unemployment insurance, and similar taxes relating to
employees and shall be responsible for all applicable withholding taxes.
VII. INSURANCE
Prior to undertaking performance of work under this contract, contractor shall maintain and shall require
its subcontractors, if any, to obtain and maintain insurance as described below:
Commercial General Liability Insurance. Contractor shall maintain commercial general liability
insurance which shall include, but not be limited to protection against claims arising from bodily
and personal injury, including death resulting there from and damage to property, resulting from
any act or occurrence arising out of contractor's operations in the performance of this
agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall
be not less than the following: single limit coverage applying to bodily and personal injury,
including death resulting therefrom, and property damage, in the total amount of One Million
Dollars ($2,000,000) per occurrence, Two Million Dollars ($2,000,000) in the aggregate. Such
insurance shall (a) name the City, its officers, employees, agents, volunteers, and
representatives as additional insured(s); (b) be primary and not contributory with respect to
insurance or self- insurance programs maintained by the City; and (c) contain standard
separation of insureds provisions.
2. Business automobile liability insurance, or equivalent form, with a combined single limit of not
less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include
coverage for owned, hired and nonowned automobiles.
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less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include
coverage for owned, hired and nonowned automobiles.
Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the
Labor Code, contractor is required to be insured against liability for Workers' Compensation or
to undertake self - insurance. Prior to commencing the performance of the work under this
contract, contractor agrees to obtain and maintain any employer's liability insurance with limits
not less than One Million Dollars ($1,000,000) per accident.
4. The following requirements apply to the insurance to be provided by contractor pursuant to this
section:
a. Contractor shall maintain all insurance required above in full force and effect for the
entire period covered by this agreement.
b. Certificates of insurance shall be furnished to the City upon execution of this contract
and shall be approved in form by the City Attorney.
C. Certificates and policies shall state that the policies shall not be canceled or reduced in
coverage or changed in any other material aspect without thirty (30) days prior written
notice to the City.
5. If contractor fails or refuses to produce or maintain the insurance required by this section or fails
or refuses to furnish the City with required proof that insurance has been procured and is in
force and paid for, the City shall have the right, at the City's election, to forthwith terminate this
contract. Such termination shall not affect contractor's right to be paid for its time and materials
expended prior to notification of termination. Contractor waives the right to receive
compensation and agrees to indemnify the City for any work performed prior to approval of
insurance by the City.
VIII. HOLD HARMLESS/ INDEMNIFICATION
To the fullest extent permitted by law, contractor shall indemnify, defend and hold harmless City, its
officers, agents and employees (collectively, the "indemnified parties ") from and against any and all
claims (including, without limitation, claims for bodily injury, death or damage to property), demands,
obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities,
costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of
every kind and nature whatsoever (individually, a claim; collectively, "claims "), which may arise from or
in any manner related (directly or indirectly) to any work performed or services provided under this
contract (including, without limitation, defects in workmanship andlor materials) or contractor's
presence or activities conducted performing the work (including the negligent and /or willful acts, errors
and /or omissions of contractor, its principals, officers, agents, employees, vendors, suppliers,
contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable for any or all of them). Notwithstanding the foregoing, nothing herein shall be
construed to require contractor to indemnify the indemnified parties from any claim arising from the sole
negligence or willful misconduct of the indemnified parties. Nothing in this indemnity shall be construed
as authorizing any award of attorney's fees in any action on or to enforce the terms of this contract.
This indemnity shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided
by the contractor.
IX. NOTICE
Any notice, tender, demand, delivery or other communication pursuant to this agreement shall be in
writing and shall be deemed to be properly given if delivered in person or mailed by first class or
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certified mail, postage prepaid, sent by telefacsimile communication, or via e -mail to the following
persons:
To City: Clerk of the Council
City of Santa Ana
20 Civic Center Plaza (M -30)
Santa Ana, CA 92701
Fax 714- 647 -6956
With courtesy copy to:Public Works Agency— Design Engineering
City of Santa Ana
20 Civic Center Plaza (M -36)
Santa Ana, CA 92701
Fax 714 - 647 -5635
To Contractor: Ano Autogas
1960 Ramada Dr
Paso Robles, CA 93446
Fax 805 -239 -1237
X. TERMINATION
The City reserves the right to terminate the contract as follows:
In the event contractor fails or refuses to timely perform any of the provisions of this agreement
in the manner required, or if contractor violates any provision of this agreement, contractor shall
be deemed in default. City shall provide written notice of such default to contractor's project
manager. Contractor shall cure said default within a period of two (2) working days. If such
cure is not completed in a timely manner, City may terminate the agreement forthwith by giving
written notice to contractor's project manager. Contractor shall be responsible for all costs
incurred by City, including replacement costs of equipment and labor required to provide service
during contractor's default. In the event of such termination for cause, City shall pay contractor
that portion of compensation specified in the agreement that is earned and unpaid prior to the
effective date of termination. Contractor shall not be entitled to any compensation for lost profits
if terminated for cause.
2. This agreement may be terminated without cause by City upon thirty (30) days written notice
delivered to the contractor either personally or by mail. Upon termination, City shall pay to
contractor that portion of compensation specified in the agreement that is earned and unpaid
prior to the effective date of termination.
A. CONTRACTOR OPTION FOR TERMINATION
The contractor may request termination of the contract when conditions during the contract make it
impossible to perform or when prevented from proceeding with the contract by act of God, by law or
official action of a public authority or in the event on nonpayment by the City. Such request will require
one- hundred eighty (180) days written notice prior to contract termination date requested. In the event
of nonpayment of undisputed sums by the City, contractor shall give the City thirty (30) working days to
cure the alleged breach.
XII. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
Contractor shall perform all requirements under this contract in strict observance of and in
compliance with all applicable environmental, traffic, safety and any other laws, regulations,
ordinances, codes and any other legislative or statutory requirements.
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2. Contractor warrants that the performance of services under this contract shall be compliant with the
current codes and requirements as adopted by Federal, State, County and City jurisdictions and as
it may be amended or updated throughout the term of this contract.
XIV. ASSIGNMENT
Inasmuch as this contract is intended to secure the specialized services of contractor, contractor may
not assign, transfer, delegate or subcontract any interest herein without the prior written consent of City
and any such assignment, transfer, delegation or subcontract without the City's prior written consent
shall be considered null and void.
XV. JURISDICTION —VENUE
This contract has been executed and delivered in the State of California and the validity, interpretation,
performance and enforcement of any of the clauses of this contract shall be determined and governed
by the laws of the State of California. Both parties further agree that Orange County, California, shall
be the venue for any action or proceeding that may be brought or arise out of, in connection with or by
reason of this contract.
XVI. FINES
The contractor shall be liable for all violation fines levied against the City by federal, state, or local
agencies with regulatory authority related to contractor provided services.
XVII. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority
and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify
City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the
event that such authority or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body
of this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA CARVAHALO
City Attorney 'n /
I. /
By: _
Laura Sheedy
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Edwin "William" Galvez. P.E.
Interim Executive Director
Public Works Agency
CITY OF SANTA ANA
DAVID CAVAZOS
City Manager
SAN LUIS BUTANE DISTRIBUTORS, DBA
ARRO AUTOGAS
WILLIAM PLATZ
President
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EXHIBIT A
RFP — PROPANE FUELING STATION
SCOPE OF SERVICES
Assessment of Existing Conditions
Contractor shall review and analyze the location of the proposed project and shall compare existing
facilities and conditions with what is requested by City. Contractor has clarified and made City
aware of any errors, omissions, or discrepancies found.
II, Coordination
Contractor shall assist with coordination and approval of site work by others required to prepare the
site to install the propane dispensing system.
III. Refueling Station:
Contractor shall provide all equipment, materials and incidentals to provide a propane fueling
station, complete and in place, which meets the following requirements:
• Regulations: Project shall meet all regulations as set by the National Fire Protection Agency
(NFPA), the Department of Transportation (DOT), the Occupational Safety and Health
Administration (OSHA) the California Fire Code Article 58, Santa Ana Municipal Code
Chapter 14, City of Santa Ana Planning and Building Agency and the Orange County Fire
Authority.
• Bulk Storage Tank (Vessel): Provide (1) 2,000 gallon capacity horizontal tank, with 6"
diameter, concrete filled, crash bollards (painted yellow) per the layout shown on site plan
and per local building and fire codes. Bulk storage tank shall be constructed of steel in
accordance with (American Society of Mechanical Engineers (ASME) and the requirement
of state and local building and fire codes. Tank installation shall meet requirements of state
and local building and fire codes. Tank shall be installed proper distance from other tanks,
building, property lines and other structures as outlined in Codes. Tanks shall be painted a
light, reflective color. "Propane" shall be stenciled on sides.
• Dispenser: Shall serve two vehicles from two sides. Provide propane refueling dispenser,
double hose, with fully integrated electronics to interface with the City of Santa Ana
Corporate Yard current fuel management system. Key card system shall be pre - certified.
IV. Service and Purchase Agreement:
Contractor shall provide 5 -year service and propane purchase agreement. Service shall include
necessary maintenance and repair as required to ensure safety, proper function and use. All
equipment, including but not limited to, hose, fittings, piping, valves, adapter thread, tank,
shall be inspected on a monthly basis for leaks, corrosion, dents, bulging, rust and /or other damage
and repaired /replaced when necessary.
Fuel provider must provide qualified technicians for the dispenser. Documentation shall be provided
evidencing that personnel who will be dispensing propane have been properly trained on safe
propane handling procedures. Qualified trainings include, but are not limited to: Department of
Transportation Hazmat Training, National Propane Gas Association's Certified Employee Training
Program (CETP), and the GAS Check training Program. OSHA mandates that protective equipment
be worn.
Fuel will be re- filled and charged by gallon. Contractor shall provide a revenue share of $.10 per
gallon of propane sold to the public, to enable City to recover costs associated with providing
propane fuel. Contractor will provide the data required by City to audit the accuracy of City revenue
share receipts.
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Contractor will monitor fuel supply in the propane tank and the reorder /refill without downtime to
City facility.
V. Fuel:
Propane must meet the California Air Resources Board (CARE) propane motor fuel specified levels.
Fuel provider must provide alternative refueling locations with public access and 24 -hour card
reader electronic point of sale (EPOS) system throughout Southern California.
VI. Erosion Control Plan / SWPPP
For construction related projects having less than one (1) acre of disturbed soil, contractor shall
prepare an erosion and sediment control plan immediately after award of the contract, for approval
by the City.
The erosion control plan shall remain in effect until approval to remove is granted by the City.
VII. Record Drawings:
Contractor shall provide record drawings of facility as installed, and all related permits.
LICENSES AND PERMITS
Contractor shall apply for and obtain all necessary permits as required by the City and all
other regulatory agencies including Federal, State, and County jurisdictions, including the
Orange County Fire Authority. City permits will be "no fee" permits. All fees required by other
jurisdictions shall be the responsibility of the contractor.
OWNERSHIP
Fueling Station: Contractor to pay for, provide and install equipment (bulk storage tank,
dispensing unit, motor /pump, key card system), which will be property of oontractor for the term of
this Agreement. When Agreement period ends, Contractor shall remove said equipment from site.
Commodity Purchase: City of Santa Ana will purchase propane fuel for City of Santa Ana Fleet Service
vehicles at agreed upon cost. Contractor shall contract independently with private companies for their fuel
purchase. Contractor shall obtain business and seller's permits as outlined in RFP 13 -012.
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EXHIBIT B
PRICE PROPOSAL
February 5, 2014
City of Santa Ana
20 Civic Center Plaza
Santa Ana, Ca 92702
Dear Suzi Furjanic / AIA,LEED Green Associate,Assoc. PL Planner;
Re: Now propane Fueling Station -Fleet Services
This letter is in response to your email dated February 4, 2014 to the following questions in bold.
Will we purchase fuel monthly? Will the rack price be revisited and taken into account at that
time. Is "rack price" the correct language to use?
Arro Autogas will bill the City of Santa Ana twice a month for all transactions during any two week
period. All transactions will be recorded through the on -site Fuel Master Unit. The price Arro quoted on
RFP #13 -012 was (Propane price to be $0.30 over Arro Autogas's laid in cost on date of delivery + taxes)
Laid in is what it cost to truck the propane from the oil refinery to our Pomona facility, currently laid in is
$0.11. This equals a total margin /delivery cost of $0,41. The correct language is "AePEX Los Angeles
rack on the date of transaction ".
Did we agree that we would pay:
Rack price + .30 ( +tax) for 0 -50k gallons
Rack price + .25 (+tax) for 50 -75k gallons
Rack price + .20 ( +tax) for 75k+ gallons
Yes, we will offer a discount for volume as stated above. The discount will be based on gallons sold to
the City of Santa Ana during each and every twelve month period of the five year term. The gallons will
be calculated once the propane infrastructure is installed and approved for service by all local
jurisdictions. This is not a cumulative number, but based on twelve months. The discount will be as
follows:
AePEX LA Rack +$0.41( +tax) for 0- 50,000 gallons within 12 months as described above.
AePEX LA Rack +$0.36( +tax) for 50,001. 75,000 gallons within 12 months as described above.
AePEX LA Rack +$0.31( +tax) for 75,001 + gallons within 12 months as described above.
Thank You,
Ted Olsen
Market Manager
Arro Autogas
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