HomeMy WebLinkAbout22E - DIESEL FUEL
REQUEST FOR
COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
CITY COUNCIL MEETING DATE:
JANUARY 2, 2007
TITLE:
CONTRACT AWARD FOR
DIESEL FUEL
(SPEC. NO. 06-191)
APPROVED
D As Recommended
D As Amended
o Ordinance on 1 st Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
~~
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Award a contract to SC Fuels for the purchase of diesel fuel and petroleum
products for a one-year period in the annual amount not to exceed $325,000.
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, 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
petroleum products reflecting a 41 percent price
However, currently the diesel fuel price is the lowest
of diesel fuel and
increase in 2006.
it has been in 2006.
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, including street
sweepers. Currently, eight of 11 street sweepers are CNG units with two
more CNG units scheduled for delivery by year-end 2006. The final diesel
street sweeper CNG replacement has been ordered with a delivery date of May
2007.
Additionally, under the new Hybrid and Alternative Fuel Vehicle Acquisition
Policy, ten hybrid vehicles were purchased in 2006, and added to the seven
hybrid vehicles purchased in the preceding two years. The City has also
implemented and is testing hydrogen as an alternative fuel. There are
currently five hydrogen vehicles in the City's fleet.
22E-1
Contract Award for Diesel Fuel
January 2, 2007
Page 2
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, contracted with County of Orange for unleaded
fuel, was awarded as a result of open, competitive bidding, and meets the
City's requirements. The County of Orange has elected to extend the
current contract for an additional one-year period. G.P. Resources has
approved offering the City the same contract terms and conditions for a
one-year extension on the City's diesel fuel contract.
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.
~\\<;\."""-~ ~ '" "'. > \\.--& 'd .
~ Francisco Gutierrez f
Executive Director
Finance and Management Services Agency
FG/KM/06-191.2:uc
22E-2