Item 19 - Amend Gasoline and Diesel Fuel Purchase Agreement

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Public Works Agency www.santa-ana.org/pw Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report October 4, 2022 TOPIC: Amend Gasoline and Diesel Fuel Purchase Agreement AGENDA TITLE Approve First Agreement Amendment with TACenergy for the Purchase of Gasoline and Diesel Fuel, to Increase the Contract Amount by $600,000 and Extend Through January 31, 2023 (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute the first amendment to the gasoline and diesel purchase agreement with TACenergy, by an increase of $600,000 and extend agreement services through January 31, 2023, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency’s Central Stores is responsible for purchasing and dispensing fuel at the fueling stations at the City’s Corporate Yard and Santa Ana Police Department. On December 19, 2017, City Council awarded an agreement to IPC Fuel Distribution, now known as TACenergy (Exhibit 1), to provide unleaded gasoline and diesel fuel to both fueling stations. The agreement is set to expire on December 31, 2022. The City has a fleet inventory of over 600 vehicles that use unleaded and diesel fuel. These vehicles are assigned to various departments Citywide and rely on gas and diesel fuel. The original agreement (Exhibit 2) had a not-to-exceed expenditure amount of $950,000 per calendar year. Due to the increase in wholesale fuel costs and fleet size, the City is on pace to exceed the expenditure amounts for the current calendar year. Staff recommends to increase the agreement amount to cover expenditures through the remainder of the agreement and extending the agreement until January 31, 2023, to account for any delays with the current procurement process for a subsequent fuel supplier (Exhibit 3). ENVIRONMENTAL IMPACT There is no environmental impact associated with the action.