AGENDA #4n

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Bid: Installation of Compressed Natural Gas Refueling Equipment

DATE: January 10, 2000

The attached resolution would accept the bid of Clean Energy Enterprises (a wholly owned subsidiary of Public Service Company of North Carolina), the lowest responsive bidder, and award a contract for the installation of compressed natural gas refueling equipment for the Town of Chapel Hill.

BACKGROUND

As authorized by the Council, we submitted a Mobile Source Emissions Reduction grant application to the Division of Air Quality, Department of Environment and Natural Resources, State of North Carolina, in December 1998. Our grant application requested $100,000 to support two electric vehicles and four compressed natural gas vehicles. On April 5, 1999, the North Carolina Department of Environment and Natural Resources notified us that our grant application had been approved for $85,100, which funded about 85% of our request.

We subsequently developed a request for proposals for the installation of compressed natural gas refueling equipment to be installed at the Public Works compound and at the Parks and Recreation administration building. A “Notice to Bidders” was published in the November 14, 1999, edition of The Chapel Hill News. A bid opening was scheduled on November 30, 1999; however, no bids were received. A second “Notice to Bidders” was published in the December 5, 1999, edition of The Chapel Hill News and a second bid opening was held on December 14, 1999. One bid was received from Clean Energy Enterprises as follows:

Item Cost

(1) Fuelmaker FMQ-8-36, Vehicle Refueling Appliance $18,665

(1) Fuelmaker Fast-fill Storage System $14,540

(1) Fuelmaker FMQ-2-36, Vehicle Refueling Appliance $ 5,800

Shipping Charges $ 875

Miscellaneous Supplies and Hardware $ 775

Installation Labor $ 1,800

Total $42,455

DISCUSSION AND EVALUATION

The bid of Clean Energy Enterprises would provide and install the equipment listed above. Additional funds would be necessary to extend natural gas lines to the installed appliances and make the final connections. We estimate this cost to be about $5,000. The total project cost would be about $47,500. Due to increases in the cost of this equipment since we prepared our grant application, the total estimated project cost is about $8,800 more than the original estimate. About $32,900 of the total project cost would be recoverable from the approved Mobile Source Emissions Reduction Grant. The balance of approximately $14,600 is available from the fiscal 1999-2000 CIP budget under the “Energy Efficiency Projects” account.

We expect that the installation of this equipment will be accomplished within 90 days contract award. We will place orders for four compressed natural gas vehicles during January 2000. The expected delivery time for these vehicles is 90 to 120 days. These vehicles should be operational by about May 1, 2000. The vehicles to be ordered include two full-size sedans, one for Parks and Recreation and one the Police Department, one ¾-ton cargo van for the Police Department and one ¾-ton pick-up truck for the Parks and Recreation Department.

RECOMMENDATION

That the Council adopt the attached resolution accepting the bid of Clean Energy Enterprises in the amount of $42,455 for the installation of compressed natural gas refueling equipment for the Town of Chapel Hill as the lowest responsive bid.

A RESOLUTION ACCEPTING A BID AND AWARDING A CONTRACT FOR THE INSTALLATION OF COMPRESSED NATURAL GAS REFUELING EQUIPMENT (2000-01-10/R-13)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in the November 14, 1999, edition of The Chapel Hill News in accordance with G.S. 143-128, for the installation of compressed natural gas refueling equipment and received no bids in response to this solicitation; and

WHEREAS, the Town of Chapel Hill has solicited, for a second time, formal bids by advertisement in the December 5, 1999, edition of The Chapel Hill News in accordance with G.S. 143-128, for the installation of compressed natural gas refueling equipment; and

WHEREAS, the following bid was received from Clean Energy Enterprises and opened on December 14, 1999: