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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: April 20, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Zeit Energy, LLC, for the CNG Fuel Station Maintenance & Repairs for the Solid Waste & Recycling Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7604 – awarded to Zeit Energy, LLC, for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $150,000). The Public Utilities Board recommends approval (6 - 0). INFORMATION/BACKGROUND On July 5, 2018, the construction of the Solid Waste Compressed Natural Gas (CNG) Fueling Station was completed. Currently, the department has a fleet of 24 vehicles utilizing the CNG fuel station. This contract will ensure the specialized maintenance and repairs required to keep the CNG station operational and the CNG fleet in service. Maintenance will be performed on a weekly, monthly, and annual basis, and repairs as needed. Maintenance activities include: • CNG Compressor Maintenance • CNG Dryer • Priority Panel and Gas Storage Inspection • Dispenser Inspection • Site Inspection • And Manufacturers specified weekly, monthly preventive maintenance Based on a historical spend and future projections the recommended not to exceed (NTE) for this contract is $150,000 for a total potential five (5) year contract. Requests for Proposals was sent to 585 prospective suppliers, including 67 Denton firms, of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received, references were checked, and proposals evaluated based upon published criteria including delivery, compliance with specifications, probable performance, and price. Based upon this evaluation, Zeit Energy, LLC was ranked the highest and determined to be the best value for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 910-(Service Only)-Building Maintenance, Installation & Repair Services & 961-(Service Only)- Miscellaneous Services, No. 1 (Not Otherwise Classified) Notifications sent for Solicitation sent in IonWave: 585 Number of Suppliers that viewed Solicitation in IonWave: 16 HUB-Historically Underutilized Business Invitations sent out: 54 SBE-Small Business Enterprise Invitations sent out: 271 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 13, 2016, City Council approved a contract with Zeit Energy LLC, in the not-to-exceed amount of $2,682,445 (Ordinance 2016-253). On April 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Zeit Energy, LLC, for the CNG Fuel Station Maintenance & Repairs for the Solid Waste & Recycling Department, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $150,000. SUSTAINABILITY MEASURES CNG, also known as compressed natural gas, is an eco-friendly alternative to gasoline. Made by compressing natural gas (methane) down to less than 1% of its volume, CNG fuel is safer than gasoline and diesel because it is non-toxic and does not contaminate groundwater. Goal 1: Maintaining and increasing the use of CNG will reduce carbon monoxide emissions. Goal 2: Through our Fleet Department, usage reports and cost-effectiveness will be generated. Goal 3: For every 1% increase in natural gas production, roughly 35,000 jobs can be created. Goal 4: Implementing the service contract will allow for the extended life of the CNG station. PRINCIPAL PLACE OF BUSINESS Zeit Energy, LLC Irving, TX ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These services will be funded from Solid Waste Operating Funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: LLC Members Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Arturo Garcia, 940-349-8021. Legal point of contact: Marcella Lunn at 940-349-8333.