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HomeMy WebLinkAbout22G - UNLEADED FUEL REQUEST FOR COUNCIL ACTION ' ~..~t~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JANUARY 4, 2010 TITLE: APPROVED ? As Recommended CONTRACT RENEWAL FOR ? As Amended UNLEADED FUEL ? Ordinance on 1St Reading ? Ordinance on 2"d Reading (SPEC . NO . 0 6 - 0 6 6 ) ? Implementing Resolution ? Set Public Hearing For CONTINUED TO ~'cf, ~ - FILE NUMBER CITY MANAGER RECOMMENDED ACT{ON 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 $900,000. DISCUSSION The Fleet Division of the Finance and Management Services Agency provides fuel for all City vehicles, including 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 (OPIS), plus fixed fees and applicable taxes. As in past years, prices in the volatile petroleum market have repeated the same high season and low season, but with a marked reduction in the price structure over the last 12 months. G.P. Resources, Inc., projects the price on unleaded gasoline to follow the same volatile pattern in the next contract cycle. 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. The City reduced annual usage of unleaded gasoline by 4.45% in 2009. 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 without an increase in pricing. Staff recommends the third renewal of the contract. 22G-1 Contract Renewal for Unleaded Fuel January 4, 2010 Page 2 FISCAL IMPACT Funds are available in the Gas & Diesel account (no. 07510100 63300). The amount of the contract is estimated, as the actual expenditures will depend upon the requirements throughout the annual period. Francisco Gutierrez Executive Director Finance and Management Services Agency KM/06-066R3 22G-2