EXHIBIT_C_(1).docx

This is a Compensation exhibit (Exhibit C) for a contract between the City of Palo Alto and a contractor for compressed natural gas (CNG) compressor repair and maintenance services at two municipal fueling stations. The three-year contract runs from April 1, 2026, to March 31, 2029, and requires the contractor to provide quarterly preventative maintenance (three times annually), annual comprehensive maintenance, and 24-hour emergency repair services with a 4-hour response time. The solicitation requires proposal submission by January 13, 2026, at 3:00 p.m., with questions accepted until December 29, 2025. The existing infrastructure includes a public CNG station (built 1993, equipped with an Ariel Model JGP/1 compressor and three 4,000 psi storage tanks) and a non-public fleet station (built 2007, equipped with an Ariel Model JGP/2 compressor and three 5,500 psi storage tanks). The City operates approximately 18 CNG-fueled vehicles and maintains fueling agreements with Palo Alto Unified School District and Greenwaste.

Compensation is structured on a not-to-exceed basis with hourly rates for normal working hours, after-hours, and weekend/holiday services, supplemented by an estimated annual parts and consumables budget of $10,000. All labor, parts, equipment, transportation, miscellaneous overhead, and taxes are included within the quoted prices. The compensation exhibit specifies quarterly preventative maintenance fees and annual preventative maintenance service fees for each year of the three-year contract term, though specific dollar amounts are not filled in within this document. Additional services beyond the base scope require a detailed written proposal submitted by the contractor and must be authorized in advance by the City's Project Manager, John Dimas Flores. Contractors must demonstrate financial stability through audited or reviewed financial statements, a letter of good standing, or a Dun & Bradstreet report, and must be certified technicians capable of conducting initial assessments and developing manufacturer-recommended preventative maintenance plans.