HomeMy WebLinkAbout22E - AMEND/AWARD UNLEADED FUEL
REQUEST FOR
COUNCIL ACTION
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CITY CO.UNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
JUNE 5, 2006
TITLE:
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CIT MAN GER
APPROVED
D As Recommended
D As Amended
D Ordinance on 1 sl Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
CONTRACT AMENDMENT AND AWARD
FOR UNLEADED FUEL
(SPEC. NOS. 00-169 AND 06-066)
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Amend the contract with G.P. Resources, Inc. for unleaded fuel in the
amount not to exceed $250,000.
2. Award a contract to G.P. Resources, Inc. for the purchase of unleaded
fuel for a one-year period with provision for four one-year renewals,
in the annual amount not to exceed $1,320,000.
DISCUSSION
The Fleet Division of Finance and Management Services Agency provides
diesel and unleaded fuel at the City's Corporate Yard for all City gasoline
and diesel operated vehicles. In addition to the underground fuel storage
tanks at the Corporate Yard, fuel tanks are located at the Police facility,
and Fire Stations No.1, 4, 5 and 6.
The rising cost of fuel has impacted the purchase price of unleaded fuel
with a 65 percent increase over the past year. G.P. Resources, Inc.
proj ects the basic price of unleaded gasoline to reach over $3.20 per
gallon in the upcoming 12 months for local jurisdictions. The City is
exempt from the $0.184 per gallon Federal Excise Tax.
Overall, the City has established a program to move its fleet to
alternative fuels where applicable. With the South Coast Air Quality
Management District (AQMD) Ruling 1186.1 and 1196 in calendar year 2000,
the City is also required to move from diesel engine vehicles to gasoline
or alternative-fuel engines in the heavy-duty category that includes street
sweepers. Currently, eight of 11 street sweepers are CNG units with two
more CNG units on order and scheduled for delivery in November 2006. The
final diesel street sweeper is budgeted for replacement in fiscal '06-'07.
In addition, during the past year seven hybrid vehicles have been purchased
and ten additional vehicles have been identified for replacement for Fiscal
22E-1
Contract Amendment and Award
for Unleaded Fuel
(Spec. Nos. 00-169 and 06-066)
June 5, 2006
Page 2
Year 06-07 that meet the hybrid requirements under the new Hybrid and
Alternative Fuel Vehicle Acquisition Policy. The City has also implemented
and is testing hydrogen as an alternative fuel as well. There are currently
five hydrogen vehicles in the City's fleet.
The current contract is based on the prior year's consumption and pricing.
To date, the rising cost of fuel has exceeded the anticipated rate increase
proj ected last April 2005. Amending the contract will allow for the
payment of invoices and will provide uninterrupted fuel service until the
new contract term becomes effective. The new contract will cover a new one
year term.
Santa Ana City Ordinance No. NS-2312 authorizes the City to purchase
against contracts from any public agency utilizing a competitive bid
process. G.P. Resources contract with County of Orange for unleaded fuel
was awarded as a result of open, competitive bidding, and meets the City's
requirements. G.P. Resources has approved offering the City the same
contract terms and conditions.
FISCAL IMPACT
Funds are available in the Equipment Maintenance Garage Operation Gas &
Diesel account (account no. 75-111-6382). The amount of the contract is
estimated, as the actual expenditures will depend upon the requirements
throughout the annual period.
'1. \\r'\ ~~ \ N' t:> \\. ~ c..-'
,XFranci~co G~tierrez
~'Executlve Dlrector
Finance and Management Services Agency
FG/KM/00-169A & 06-066.2:uc
22E-2