TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE: JULY 28, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
AWARD OF CONTRACT TO COMPRESSOR DESIGN SERVICES, INC. FOR COMPRESSED NATURAL GAS FUELING STATION MAINTENANCE AND REPAIR SERVICES (FUNDING SOURCE: MOTOR FLEET FUND)
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SUMMARY
The City operates a Compressed Natural Gas (CNG) fueling station located at the City Yard, which is used primarily to fuel the City’s CNG-powered sanitation fleet. The CNG station is a critical component of the City’s solid waste operations and requires regular preventative maintenance, inspections, and timely repairs to ensure reliable operation and compliance with applicable safety standards.
The City utilizes renewable CNG as the fuel source for its sanitation fleet. Renewable CNG is a cleaner fuel alternative that can reduce greenhouse gas emissions compared to conventional fossil fuels. To ensure continued reliability of the CNG fueling infrastructure, the City issued a Request for Proposals (RFP) for CNG station maintenance and repair services in May 2026. The RFP solicited proposals from qualified firms to provide routine maintenance services, as well as on-call repair services when needed.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Award a contract to Compressor Design Services, Inc. for CNG station maintenance and repair services and authorize the City Manager to enter into a three-year contract with two optional one-year extensions in an amount not to exceed $190,000 per contract year, for a total contract amount of $950,000 over the five-year term; and
B. Appropriate $90,000 from the Motor Fleet Fund to cover the cost of one-time repairs.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request more information from staff.
FINANCIAL REVIEW
The 2026-27 Motor Fleet operating budget currently has $71,000 available for CNG station maintenance and repairs. In addition, since the budget was developed, staff has identified approximately $90,000 in one-time capital repair needs, including rebuilding two CNG compressors and one human-machine interface panel. Staff anticipate 2026-27 expenditures will remain under $161,000, including the one-time repairs.
The scope and cost of CNG station repairs cannot always be reliably projected over a three-year contract term and potential extension periods; therefore, staff recommends establishing a not-to-exceed contract amount of $190,000 per fiscal year to provide flexibility for both the identified one-time repairs and unanticipated maintenance needs. The recommended contract authority will allow the City to address necessary repairs without requiring contract amendments or delaying critical maintenance activities. Expenditures in future fiscal years will remain subject to annual budget appropriations. Under the contract, any proposed repairs must be quoted by the contractor and approved in writing by the City. All repairs will be completed at contract labor and material rates.
This purchase complies with all City purchasing guidelines. Bid and contract documents are available for review in the City Clerk's office.
The staff cost to prepare this report and administer this contract is estimated at $2,100 and is included in the operating budget of the Community Services Department.
ANALYSIS
The City received three bids in response to the RFP. The submitted proposals were reviewed for responsiveness and cost competitiveness. The bid results are summarized below:
Based on the evaluation of the submitted bids, Compressor Design Services, Inc. was determined to be the lowest responsive bidder for both the standard maintenance services and the hourly repair rate. Awarding the contract to Compressor Design Services, Inc. will provide the City with a qualified contractor to perform required preventative maintenance and respond to repair needs in a timely manner.
Compressor Design Services, Inc. has extensive experience providing CNG station maintenance and repair services for public agencies. The company has maintained several long-term contracts with agencies including Garden Grove Unified School District, Walnut Valley Unified School District, City of Corona, City of Covina, and Poway Unified School District. A reference check conducted by City staff confirmed that Compressor Design Services, Inc. is a reputable and reliable contractor with demonstrated experience supporting public agency CNG fueling operations.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, 2026-28 Budget, and the Youth and Family Master Plan.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jeremy Swan Kristin Mikula
Community Services Director Community Services Manager