HomeMy WebLinkAbout22C - SPEC - DIESEL AND UNLEADED FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 16, 2013
TITLE:
CONTRACT RENEWAL WITH
SC FUELS FOR UNLEADED AND
DIESEL FUEL (SPEC. NO. 11-051)
ITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on I" Reading
? Ordinance on 2ntl Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Renew the contract with SC Fuels for unleaded and diesel fuel for a one-year period in an
amount not to exceed $1,325,000, subject to non-substantive changes approved by the City
Manager and City Attorney.
DISCUSSION
The Finance and Management Services Fleet Division provides fuel for all City vehicles including
diesel-operated utility vehicles. Gasoline is stored in underground tanks located in the Corporate
Yard and Police Facility. As a result of the Fleet Division Alternative Energy Strategic Plan and
green initiative efforts, consumption of unleaded fuel has decreased by 2% percent since 2011.
The Alternative Energy Plan will further help reduce fuel consumption by transitioning 85 percent
of its fleet to alternative fuel vehicles by 2016.
On October 3, 2011, the City Council awarded a contract to SC Fuels for diesel fuel for a one-
year period, with provisions for four one-year renewals based on the contract with The
Cooperative Purchasing Network. On June 8, 2012 the City renewed a separate fuel contract
with G. P. Resources for unleaded gasoline. Effective February 1 2013, G. P. Resources merged
with SC Fuels resulting in SC Fuels supplying both unleaded and diesel fuel to the City. Pricing
for the City is based on daily benchmarks published by the Oil Price Information Service plus a
margin of $0.0175 per gallon. This equates to the lowest possible price per gallon/per day for
both fuel products. Staff recommends the second renewal of the contract
FISCAL IMPACT
Funds are available in the Finance and Management Services Equipment Maintenance Garage
Operation account (no. 07510100-63300).
Francisco Gutierrez sX
Executive Director
Finance and Management Services Agency
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