Questions and Answers to Project Documents — Business Opportunities
PROJECT:  Compressed Natural Gas Station Lease & Supply Agreement
NUMBER:  201840465-00

Current as of:  9/18/2018
 
Question Number  1:   What licenses will be needed by the City of Denver to pull permits and do this work associated with the compressed natural gas stations project?
    Answer:   The Contractor License requirement are specified in the City and County of Denver, Department of Aviation and Department of Public Works, Standard Specifications for Construction General Contract Conditions (Yellow Book). The requirements are set forth in Title 3- Contractor Performance and Services Section 317 Permits and Licenses. Please access the below link; https://www.denvergov.org/content/denvergov/en/contract-administration/contractor-resources/general-contract-conditions.html
Question Number  2:   Will the City of Denver except a City of Aurora Commercial Building Contractor license and Fuel Tank Contractor license as reciprocal licenses to permit and construct the compressed natural fueling stations for this RFP?
    Answer:   No, see answer to question #1
Question Number  3:   Please provide actual volume throughput with a breakdown of each station (6) by month by customer for the past 5 years. (There is only average hourly volume by site provided within the RFP, pages 111-115).
    Answer:   This information is not availbale to DEN
Question Number  4:   Is there any guaranteed volume throughput from City of Denver/Denver Airport?
    Answer:   There is not a guaranted volume from DEN
Question Number  5:   Scope of Work (page 75) indicates existing contract with Clean Energy will expire approximately 4/30/19. Please confirm that DEN will maintain contract with Clean Energy until new Contractor’s completion of design/build work, which is expected to last at minimum 9 months after contract execution?
    Answer:   The Current Contract states the following: Continuity of Services: Upon written notice to the Tenant at least sixty (60) days prior to the Expiration Date that a new tenant has been selected to operate at Denver International Airport after the Expiration Date, the Term of this Agreement shall automatically renew on the Expiration Date month-to-month during which time Tenant shall cooperate (to the extent commercially reasonable) with the City to create a phase in/phase out transition plan and a schedule that will address the following: the process of removal of any of Tenant's property in accordance with the Existing Agreement; any regulatory timelines and requirements applicable to closure of a CNG station; and any installation of equipment by the new tenant. During the renewal period(s), Tenant will continue to receive revenue from the CNG stations that it operates. Tenant shall work in good faith with the City and any new tenant to minimize disruption to operations and service at Denver International Airport to the extent practicable. However, notwithstanding the foregoing or anything to the contrary in the Existing Agreement, after the Expiration Date the Tenant may terminate the Existing Agreement upon thirty (30) days' prior written notice to the City, at any time for its convenience, without incurring any penalty or liability (financial, legal or otherwise). In no way shall Tenant be responsible for any act or omission by any new tenant or any equipment or other property of a new tenant.
Question Number  6:   Page 76. Please confirm performance bond amount of $15,000.00?
    Answer:   Yes, the amount is correct
Question Number  7:   Pricing Form, please confirm that contractor is to breakdown and list contractor profit only on each line item?
    Answer:   That is not correct. The contractor is requested to provide the total margin and a breakdown of the contractor's proposed margin in the three broad catagories: overhead and maintenance, utilities, and capital cost recovery. The Scope of Work states the following: The Operator shall procure the Compressed Natural Gas, the Operator shall charge all users that actual commodity cost including transportation fees, a handling fee not to exceed 6% of the actual commodity cost including transportation fees, and the Operator’s Margin.The Operator will provide information describing the margin, amount of the proposed margin and its components. The City would like to see the components broken into three broad categories: overhead and maintenance, utilities, and capital cost recovery. The term of the Contract (10 years) should provide sufficient time for the Operator to recover their Capital costs through the Margin. The Operator will provide a depreciation schedule for the equipment. The City would like the Operator to propose a contingent revenue sharing plan for the Capital Cost portion of the Operator’s Margin after the operator has recovered their costs. The City would like the Operator to submit as part of their proposal a revenue sharing methodology and pricing which would be divided with the Operator and the City.
Question Number  8:   Are Clean Energy CNG lines shown on aerial photos to remain in place for use by new Contractor? If so, please confirm the pressure rating and internal dimensions of these lines?
    Answer:   The service lines from the Xcel Supply lines and the facilities and a high pressure common line connecting the concourse compression and dispensing stations is owned and maintained by Clean Energy. The title to the service lines and the high pressure common line will be transferred to the selected Operator at a cost not to exceed $75,000 upon execution of the contract. (See Exhibit B)
Question Number  9:   Are the XCEL CNG lines shown on aerial photos to remain in place for use by new Contractor? If so, please confirm the pressure rating and internal dimensions of these lines?
    Answer:   The XCEL natural gas service lines will remain in place.The XCEL natural gas lines part of the utility agreement with the Airport
Question Number  10:   What is pressure of natural gas available at the utility Meter Set Assemblies (MSAs)? Where are MSAs located?
    Answer:   Utility system pressure is not known. Existing MSA’s are either on the West or North side of the equipment enclosures.
Question Number  11:   Please provide details on Tech 21 card reader replacement requirements.
    Answer:   DEN expects the proposer to determine which system they wish to propose.
Question Number  12:   Please indicate preference or requirement regarding gas engine drive or electric motor drive of compressors at all locations (noticed at least one compressor is listed as gas drive).
    Answer:   It is a requirement from DEN to have the ability to provide limited fueling on the concourses and rental car facilities in the event of a wide spread power outage. The choice is up to the proposer.
Question Number  13:   Please provide suction gas pressure and compressor flow rate specs for each location.
    Answer:   Please access the below link to review response to question No. 13 http://business.flydenver.com/bizops/rfp.asp Look under Additional Documents "
Question Number  14:   Is gas chromatograph required at Car Rental?
    Answer:   No
Question Number  15:   What is the purpose of Exhibit B-Cost of Piping info? Are those pipes that are to remain? Are those all high-pressure pipes?
    Answer:   The information would be the basis of the negotiations with the incumbent on the purchase of the lines. Refer to the Scope of Work Background Section. The lines were originally installed by Xcel Enenergy during constrcution of the airport. DEN does not own the lines and can not answer the question if they are high pressure lines.
Question Number  16:   Should Maintenance site have card readers (shown on drawings, but not listed in equipment list)?
    Answer:   No
Question Number  17:   Dryers are listed at some locations, but not all. Are dryers required at all locations?
    Answer:   This is a decision of the proposer.
Question Number  18:   Page 9 , IP – 5 Preparation of Proposal: Please confirm the only deliverable a LLC is to provide for this section is the certificate of good standing from the Secretary of State.
    Answer:   Please note Page 9, IP – 5 Preparation of Proposal, are just instructions on how a proposer shall submit their Proposal Forms. Proposers must submit all Required Forms Referenced in Attachments 2, 3, 5, and 8.
Question Number  19:   Page 17, IP-13 G. Financial conditions: In the event of company policy not to include financials in proposal, may the financials be mailed directly to April Hannon, in a separate package? Would an acceptable alternative be a signed letter, from our chief officer, outlining the current financial condition of the company?
    Answer:   Yes, financials may be mailed or delivered on a separate flash drive in a separate package. However, it must be labeled with the Company's name, RFP Number, Project Name, and addressed and forwarded to the following location: April Hannon, Contract Services, Administration Office Building (AOB), Room 8810, Denver International Airport, 8500 Peña Boulevard, Denver, Colorado 80249‐6340. No, the City would not accept an alternative option such as a signed letter, from the company's chief officer, outlining the current financial condition of the company.
Question Number  20:   At the site walk it was stated that the airport would like increased capacity at the Fleet Shop and 78th Avenue station. What capacity is needed at each site?
    Answer:   The DEN Fleet Maintenance Department (fleet shopsite) has requested the following or similar equipment:A single IMW Compressor, 5 stage, electric driven, 250 hp, 20 psig inlet pressure design, 760 SCFM output Cold Weather Package Two Kraus light duty dispensers, four 3600psi hoses. The 78th Ave Station, Den is looking for the proposer to recommend the capacity. Three ASME division 1 storage vessels Fuel Management System (Smart Panels) Future add a second service pad and install gas and electric conduits next to this new single compressor. This way if we decide to start filling busses or snow plow equipment at our facility all we would need to do is drop in a second compressor and double the output.
Question Number  21:   Would you provide information related to the required capacity at each station?
    Answer:   The capacity is to be determined by the proposer.
Question Number  22:   Please confirm that other than the Fleet Shop and 78th Avenue stations, all other station capacities can remain the same?
    Answer:   The information provided in the RFP should be the minimum capacity requirement. The proposer should provide their recommendation on the capacity in their proposal.
Question Number  23:   At the site walk it was stated that there are fees related to going through the security orientation. How much are these fees and are they applied to every person that comes onsite?
    Answer:   Please refer to the Request for Proposal Attachement 1, Instructions to Proposers related to security, IP-15 through IP-19. DEN also has a webpage on the www.Flydenver.com website to get additional information. http://business.flydenver.com/bizops/tenServices/security/index.asp
Question Number  24:   Will the existing CMU wall and foundations remain in the chance that the winning proposer is not the incumbent?
    Answer:   Under the current contract with the incumbant Section 6.16 TITLE TO IMPROVEMENTS states: Tenant agrees that all improvements to the Lease Premises, including approved changes and renovations, which are affixed to the realty, other than Tenant's Equipment, shall become the property of the City upon their completion and acceptance by the City. Notwithstanding the foregoing, any fuel storage and distribution system lines installed by Tenant shall remain the property of Tenant and shall be Tenant's Equipment as herein defined. The City expressly denies any ownership, operation, responsibility or liability for the installation, operation, maintenance or removal of any fuel storage and distribution system or lines at any time during or after the termination of this Lease Agreement.
Question Number  25:   Are all proposers expected to propose all new equipment and materials? Including tubing, foundations, dispenser islands, etc.
    Answer:   Yes on all new equipment and materials. The proposer will need to determine if the existing lease areas are sufficent for the new equipment placement.
Question Number  26:   Is the airport able to extend the existing contract with the incumbent to allow more time to transition from their system to a different proposer?
    Answer:   Yes, the city must provide notice to the incumbant 60 days in advance of the expiration date that a new vendor has been selected. The incumbant then continues on month to month basis and continues to receive revenue from the stations in their operation. the Incumbant does have the ability to terminate the agreement after the expiration date with 30 day notice to the City.
Question Number  27:   Is it possible to temporarily combine multiple stations to allow time to upgrade the other facilities?
    Answer:   Potentially, that will need to be proposed in the transistion plan. Some locations do not lend themsleves to combination due to the station's location and whom has access to fuel at the stations.
Question Number  28:   What is the existing suction pressure, transformer rating, and flow rate for each location?
    Answer:   See question 13.
Question Number  29:   Is the airport open to a different fuel management system?
    Answer:   DEN Fleet Management at the Maintenance facility location only operates on Fuel Force version 6.5.0 software with a SQL database and currently at this time we are not upgrading. The proposer's fuel management system will needs to interface with the current DEN Fuel Force System.