HomeMy WebLinkAbout22A - UNLEADED FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 2, 2008
TITLE:
CONTRACT RENEWAL FOR
UNLEADED FUEL
(SPEC. NO. 06-066)
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CI Y MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 15t Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Renew the contract with G.P. Resources, Inc., for the purchase of unleaded
fuel for a one-year period in an annual amount not to exceed $1,400,000.
DISCUSSION
The Fleet Division of the Finance and Management Services Agency provides
fuel for all City gasoline and diesel operated vehicles. The fuel is
stored in underground tanks located at the Corporate Yard, the Police
facility, and Fire Stations No. 1, 4, 5 and 6.
Pricing for the City's fuel purchases are based upon daily benchmarks
published by the Oil Price Information Service (OPTS), plus fixed fees and
applicable taxes. Prices in the volatile petroleum market have increased
considerably in the 12-month contract period. G.P. Resources, Inc.,
projects the basic price of unleaded gasoline to follow the same volatile
pattern, absent the peak experienced in June 2008, through the current
fiscal year.
In response, the City has established a program to evaluate the use of
alternative fuels to reduce consumption of gasoline and diesel fuel.
Currently, all 11 of the City's street sweepers are fueled with compressed
natural gas (CNG). Since the 05/06 fiscal year, 21 gasoline/electric
hybrid vehicles have been added to the City fleet. In addition, the City
is testing hydrogen as an alternative fuel and currently operates five
hydrogen/electric hybrid vehicles.
22A-1
Contract Renewal
September 2, 2008
Page 2
for Unleaded Fuel
On June 5, 2006, The City Council awarded a contract to G.P. Resources,
Inc., for a one-year period with provision for four, one-year renewals.
The vendor has performed satisfactorily during the past contract period
and has agreed to renew the contract with a $.005 increase per gallon to
cover higher trucking expenses, for a new fixed fee cost of $.018 per
gallon. Staff determined this increase is consistent with the market and
recommends the second renewal of the contract. The overall contract dollar
amount has been increased by six percent in response to current pricing.
FISCAL IMPACT
Funds are available
(no. 75-111-6382).
expenditures will
period.
in the Equipment
The amount of the
depend upon the
~ _..
G~r .ncisco Gutierrez
Executive Director
Finance and Management Services Agency
FG/KM/06-066R2.2:ush
Maintenance
contract is
requirements
Garage Operation account
estimated, as the actual
throughout the annual
22A-2