HomeMy WebLinkAbout22E - CONTRACT AMEND AND AWARD G.P. RESOURCES SPEC 11-064REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 19, 2011
TITLE:
CONTRACT AMENDMENT AND
AWARD TO G.P. RESOURCES FOR
UNLEADED FUEL AND OIL
PRODUCTS (SPEC. NO. 11-064)
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1st Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Amend the contract with Maxum West dba G.P. Resources for unleaded fuel by $130,000
for a total amount not to exceed $1,220,000.
2. Award a contract with Maxum West dba G.P. Resources, Inc. for the purchase of
unleaded fuel and oil products for a six month period in an amount not to exceed
$625,000.
DISCUSSION
Facilities, Fleet and Central Stores (FMCS) 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 in the Corporate Yard, the Police facility, and Fire
Station 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.
The City has established a program to evaluate the use of alternative fuels to reduce
consumption of gasoline and diesel fuel. Currently, all 10 of the City's street sweepers are
fueled with compressed natural gas (CNG). Since the 05/06 fiscal year, 27 gasoline, electric,
hybrid and hydrogen vehicles have been added to the City fleet. Furthermore FMCS has
established a 5-year alternative energy plan to convert 75 - 85% percent of the fleet to
alternative energy within the next five-years. The plan will vastly reduce fuel cost, carbon
footprint, and the use of renewable energy in efforts of reducing the dependency on foreign oil.
Oil prices have been volatile over the past several years and G.P. Resources, Inc. projects the
price of unleaded petroleum to continue a steady climb. To date, the rising cost of fuel has
increased 20 percent from January 2011 to December 2011. With higher than anticipated
unleaded fuel rates, staff recommends amending the contract beyond the 10 percent change
notice already approved for a contract total of $1,220,000 for payment of invoices, and provide
uninterrupted fuel service until the new contract term becomes effective on January 1, 2012 (six
month period).
22E-1
Contract Amend and Award for Unleaded Fuel and Oil Products
December 19, 2011
Page 2
Unleaded fuel consumption for 2012 may be impacted pending any changes in fleet or City
operations. As such, staff recommends the new contract to G.P. Resources be awarded for six
months to allow the contract to be re-evaluated in July 2012. The current contract is based on
the prior year's consumption and pricing.
Santa Ana City Ordinance No. NS-2312 authorizes the City to purchase against contracts from
any public agency utilizing a competitive bid process. The City of San Buenaventura, contract for
the purchase of unleaded fuel and supplies from G.P. Resources, Inc. 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.
07510100-63300); Equipment Maintenance account (no. 07510100-63202) for petroleum
products. The amount of the fuel contract is estimated, as the actual expenditures will depend
upon the requirements through the annual period.
C tip';\?r ,mot. o
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
KM
22E-2