Title
[Contract] Cooperative Purchase Contract for Compressed Natural Gas and Renewable Natural Gas [Published for 10-Day Review 04/24/2026]
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FileID
File ID: 2026-00644
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) authorizing, through “piggybacking” City Code Section 3.56.240, the use of the San Diego Metropolitan Transit System (“MTS”) contract with Clean Energy (MTS Doc. No. G2627.0-22) ) for the provision of gas service for Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG) fuel, in an amount not-to-exceed $6,000,000 with a full five year term and four additional one year options; and 2) authorizing the City Manager or designee to execute the City of Sacramento form cooperative purchase/piggybacking agreement, all other documents necessary to effectuate this agreement, and, any renewal options specified above provided that sufficient funds are available in the budget adopted for the applicable fiscal year.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works’ Fleet Management Division maintains responsibility for ensuring that all City departments have the fuel, services, and materials necessary to effectively operate and maintain the municipal fleet. As part of this ongoing operational requirement, the City must routinely procure Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG) to fuel 113 City fleet assets that rely on these energy sources for daily operations. These vehicles include essential service units that support waste collection, street maintenance, infrastructure repair, and other critical public functions. Securing a reliable supply of CNG and RNG ensures continuity of service delivery, maintains compliance with fleet sustainability goals, and supports safe and efficient City operations.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56. which requires City Council approval of actions of $250,000 or more and which provides for the use of cooperative purchase/piggybacking agreements without competitive bidding (Section 3.56.240). Additionally, in accordance with the Sacramento City Code Section 4.04.020 and Council’s Rules of Procedure (Chapter 7, Section E.2.d) unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be posted on the City’s website and be made available to the public at least 10 days prior to council action.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act: No environmental review is necessary because the recommendations in this report involve the purchasing of renewable natural gas and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: The purchase of CNG and RNG directly supports the City’s Fleet Sustainability Policy (Resolution 2017-0478), adopted by the City Council on December 12, 2017. Utilizing CNG and particularly RNG provides measurable environmental benefits when compared with conventional gasoline and diesel fuels, including reductions in greenhouse gas emissions, lower particulate matter output, and improved regional air quality. RNG, in particular, can achieve carbon-neutral or carbon-negative lifecycle emissions because it captures methane generated from organic waste streams. Piggybacking through the MTS contract with Clean Energy ensures access to cleaner fuel options consistent with Citywide sustainability, climate action, and emission-reduction goals.
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Commission/CommiteeAction
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Department of Public Works recommends approval of this action based on three core considerations: Policy Alignment and Environmental Benefits, Procurement Leveraging Strategy, and Operational Need.
1. Policy Alignment and Environmental Benefits
Using CNG and RNG for appropriate fleet assets advances the City’s sustainability objectives and aligns with the adopted Fleet Sustainability Policy. RNG significantly reduces lifecycle greenhouse gas emissions, mitigates methane release, and supports the City’s commitment to reducing its carbon footprint. This fuel strategy complements the City’s broader efforts to transition toward lower-emission technologies, maintain environmental compliance, and promote climate-forward municipal operations.
2. Procurement Leveraging Strategy
Leveraging the MTS competitively bid purchase agreement with Clean Energy allows Sacramento to benefit from pricing advantages associated with significantly higher fuel volumes. Using this approach maximizes taxpayer value, reduces administrative burden, and achieves more favorable pricing and terms than the City could secure through an independent solicitation. Piggybacking is a best-practice procurement strategy that enables government agencies to reduce cost and risk while increasing efficiency.
3. Operational Need
A dependable supply of CNG and RNG is essential to the uninterrupted operation of critical City vehicles, including solid-waste collection trucks, pavement maintenance dump trucks, patching equipment, and other heavy-duty units. Without these fuel purchases, the City would be unable to maintain core public services such as waste removal, street repair, and infrastructure maintenance. The recommended procurement ensures continuity of operations and supports the City’s ability to meet service delivery expectations.
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FinancialConsiderations
Financial Considerations: Adequate funding is available in the Department of Public Works, Fleet Management Division’s Fiscal Year 2025/26 operating budget (Fleet Fund, Fund 6501) to support purchases through June 30, 2026. Any purchases made after this date will be contingent upon future budget appropriations as approved by the City Council during subsequent budget cycles. No additional appropriations are required at this time.
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LocalBusinessEnterprise(LBE)
Local Business Enterprise (LBE): Clean Energy is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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