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HomeMy WebLinkAbout22B - DIESEL FUELREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 4, 2008 TITLE: CONTRACT AWARD FOR DIESEL FUEL (SPEC. NO. 08-004) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15~ Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to SC Fuels for the purchase of diesel fuel and petroleum products for a one-year period, with the provision for four one-year renewals, in an annual amount not to exceed $325,000. DISCUSSION The Fleet Division of the Finance and Management Services Agency provides diesel fuel at the City's Corporate Yard for all City 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 City has established a program to move its fleet to alternative fuels, where applicable. Additionally, the South Coast Air Quality Management District (AQMD) Ruling 1186.1 and 1196 in year 2000 requires the City to move from diesel engine vehicles to gasoline or alternative-fuel engines in the heavy-duty category. To date, all 11 street sweepers are now CNG units, as the final diesel sweeper was replaced in May 2007. However, the City's fleet still includes diesel-powered vehicles, including fire engines. Additionally, the City has been investing in back-up generators for emergency operations, which are diesel-powered. Therefore, staff recommends continuing the same dollar amount of $325,000 for the next contract period. 22B-1 Contract Award for Diesel Fuel February 4, 2008 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. SC Fuels' contract with County of Orange for diesel fuel was awarded as a result of open, competitive bidding, and meets the City's requirements. FISCAL IMPACT Funds are available in the Equipment Maintenance Garage Operation Gas & Diesel account (no. 75-111-6382). ~~Francisco Gutierrez G~ ~ Executive Director ~ Finance and Management Services Agency FG/KM/08-004.2: 22B-2