HomeMy WebLinkAbout23A - PROJ - REJECT PROPOSAL PROPANE FUELINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 21, 2013
TITLE:
REJECT THE PROPOSAL FOR A NEW
PROPANE FUELING STATION AT THE
SANTA ANA CORPORATE YARD
(PROJECT NO.111300)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2ntl Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Reject the proposal for the new propane fueling station, service agreement, and propane supply at
the Corporate Yard.
DISCUSSION
Rejecting the one bid that was submitted authorizes the closure of this current bid cycle and allows
staff to re-bid or re-scope the project so that the City receives competitive pricing within available
funds. The City of Santa Ana Corporate Yard was constructed in 1994 with gasoline and diesel
fueling stations. In response to the availability and growing popularity of alternative fuels,
compressed natural gas and hydrogen fueling stations were later added. In February 2011, Fleet
Services prepared the City of Santa Ana Green Facilities, Fleet and Central Stores Strategic Plan
(Strategic Plan) in an effort to continue and expand the process of creating environmentally
responsible facilities, fleet, and stores operations. The provision of alternative fuels and fuel
efficiency are the cornerstones of this plan.
In 2012, Fleet Services was successful in receiving Clean Transportation funding through the
Mobile Source Air Pollution Reduction Review Committee (MSRC), in the New Expanded or
Upgraded Alternative-Fuel Infrastructure category to install a propane fueling station. Through the
provision of this alternative fuel, the City could continue progress toward the goals of the Strategic
Plan.
On June 19, 2013, a Request for Proposals (RFP) was published via the City website, e-mail, and
an online planning room. The Scope of Work consisted of three parts: (1) design and build a
propane fueling facility, including concrete work, fencing, tank, dispensing unit, and related
infrastructure; (2) a five-year service agreement; and (3) a propane supply. Although two Letters of
Intent had been received prior to publishing the RFP, only one proposal was received. The
proposal received was submitted by Arro Autogas for a lump sum cost of $205,000 for the design-
build component of the project. This exceeded the Engineer's Estimate of $80,000.
23A-1
Rejection of Proposal for a new Propane Fueling Station
at the Santa Ana Corporate Yard
October 21, 2013
Page 2
As part of the proposal and fee evaluation process, and in an effort to investigate why fees
exceeded the estimate, the proposer was interviewed and a request was made for a cost
breakdown. The proposer refused this request. As a result, staff finds the proposer to be
nonresponsive, and recommends rejecting the proposal and advertising the project again.
Following Council approval to reject the proposal, two new RFPs will be issued, separating the
design-build component from the service agreement/propane supply component. It is anticipated
that this approach will increase interest and competiveness.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Edwin "William" alve , P. E.
Interim Executive Director
Public Works Agency
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
EWG/SF
Exhibit 1: Project Location Map
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rROAW L0CA710N
EXHIBIT 1
a
SANTA ANA CITY COUNCIL 1 '
F AGENDA ?`
DATES PROJECT (11-1300) PROPANE FUELING
OCTOBER 21. STATION AT CORPORATE YARD
„., c ms. w. 2013
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