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<br />REQUEST FOR <br />COUNCIL ACTION <br /> <br /> <br />CITY COUNCIL MEETING DATE: <br /> <br />DECEMBER 20, 2004 <br /> <br />TITLE: <br /> <br />CONTRACT AMENDMENT AND <br />CONTRACT RENEWAL FOR <br />DIESEL FUEL <br />(SPEC. NO. 02-146) <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />APPROVED <br />o As Recommended <br />o As Amended <br />o Ordinance on 1 st Reading <br />o Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Public Hearing For <br /> <br />~ <br /> <br />C2Ifa <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />1. Amend the contract with SC Fuels for the purchase of diesel gasoline <br />fuel by $10,000 for a total not to exceed $208,000. <br /> <br />2. Renew the contract with SC Fuels, under the Cooperative Purchase <br />Provision of Orange County, for the purchase of diesel gasoline fuel <br />for a one-year period, in an annual amount not to exceed $270,000. <br /> <br />DISCUSSION <br /> <br />The Finance and Management Services Agency's Fleet Maintenance Division <br />orders diesel fuel for the City's diesel-operated vehicles. The County of <br />Orange awarded a contract to SC Fuels, formerly known as Southern Counties <br />Oil Co., based on a competitive bid process. The price is based on the <br />index published in the Oil Pricing Information Service (OPIS) newsletter <br />for Southern California by United Communications Group, Bethesda, <br />Maryland, and a delivery charge. <br /> <br />On January 6, 2003, the City Council awarded a contract to SC Fuels <br />Counties Oil Co. for a one-year period, with provision for three one-year <br />renewals. The vendor has performed satisfactorily during the past <br />contract period, and pricing continues with the index published in the <br />OPIS newsletter. During the past year, OPIS has experienced a 50 percent <br />increase in its published diesel rate. The recommended contract amount <br />reflects that 50 percent increase. Staff recommends the second renewal of <br />the contract. Additionally, staff is requesting an amendment to the <br />existing contract with SC Fuels to provide payment on invoices. The <br />rising cost of diesel fuel has caused a shortage in the contract funds. <br /> <br />220-1 <br /> <br />cs. 383 <br /> <br />