HomeMy WebLinkAbout22D - DIESEL FUEL
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 20, 2004
TITLE:
CONTRACT AMENDMENT AND
CONTRACT RENEWAL FOR
DIESEL FUEL
(SPEC. NO. 02-146)
CLERK OF COUNCIL USE ONLY:
APPROVED
o As Recommended
o As Amended
o Ordinance on 1 st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
~
C2Ifa
CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Amend the contract with SC Fuels for the purchase of diesel gasoline
fuel by $10,000 for a total not to exceed $208,000.
2. Renew the contract with SC Fuels, under the Cooperative Purchase
Provision of Orange County, for the purchase of diesel gasoline fuel
for a one-year period, in an annual amount not to exceed $270,000.
DISCUSSION
The Finance and Management Services Agency's Fleet Maintenance Division
orders diesel fuel for the City's diesel-operated vehicles. The County of
Orange awarded a contract to SC Fuels, formerly known as Southern Counties
Oil Co., based on a competitive bid process. The price is based on the
index published in the Oil Pricing Information Service (OPIS) newsletter
for Southern California by United Communications Group, Bethesda,
Maryland, and a delivery charge.
On January 6, 2003, the City Council awarded a contract to SC Fuels
Counties Oil Co. for a one-year period, with provision for three one-year
renewals. The vendor has performed satisfactorily during the past
contract period, and pricing continues with the index published in the
OPIS newsletter. During the past year, OPIS has experienced a 50 percent
increase in its published diesel rate. The recommended contract amount
reflects that 50 percent increase. Staff recommends the second renewal of
the contract. Additionally, staff is requesting an amendment to the
existing contract with SC Fuels to provide payment on invoices. The
rising cost of diesel fuel has caused a shortage in the contract funds.
220-1
cs. 383
Contract Amendment and Contract Renewal
for Diesel Fuel (Spec. No. 02-146)
December 20, 2004
Page 2
FISCAL IMPACT
Funds are available in the Equipment Maintenance, Garage Operation
Gasoline and Diesel Fuel account (account no. 75-111-6382).
oma
Director
nd Management Services Agency
Executi
Finance
6Y
RRC/KM/02-146-A-R2.2:1i
220-2