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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 5, 2006 <br />TITLE: <br />CONTRACT AMENDMENT AND AWARD <br />FOR UNLEADED FUEL <br />(SPEC. NOS. 00-169 AND 06-066) <br />CIT MAN GER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1S` Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />1. Amend the contract with G.P. Resources, Inc. for unleaded fuel in the <br />amount not to exceed $250,000. <br />2. Award a contract to G.P. Resources, Inc. for the purchase of unleaded <br />fuel for a one-year period with provision for four one-year renewals, <br />in the annual amount not to exceed $1,320,000. <br />DISCUSSION <br />The Fleet Division of Finance and Management Services Agency provides <br />diesel and unleaded fuel at the City's Corporate Yard for all City gasoline <br />and diesel operated vehicles. In addition to the underground fuel storage <br />tanks at the Corporate Yard, fuel tanks are located at the Police facility, <br />and Fire Stations No. 1, 4, 5 and 6. <br />The rising cost of fuel has impacted the purchase price of unleaded fuel <br />with a 65 percent increase over the past year. G.P. Resources, Inc. <br />projects the basic price of unleaded gasoline to reach over $3.20 per <br />gallon in the upcoming 12 months for local jurisdictions. The City is <br />exempt from the $0.184 per gallon Federal Excise Tax. <br />Overall, the City has established a program to move its fleet to <br />alternative fuels where applicable. With the South Coast Air Quality <br />Management District (AQMD) Ruling 1186.1 and 1196 in calendar year 2000, <br />the City is also required to move from diesel engine vehicles to gasoline <br />or alternative-fuel engines in the heavy-duty category that includes street <br />sweepers. Currently, eight of 11 street sweepers are CNG units with two <br />more CNG units on order and scheduled for delivery in November 2006. The <br />final diesel street sweeper is budgeted for replacement in fiscal '06-'07. <br />In addition, during the past year seven hybrid vehicles have been purchased <br />and ten additional vehicles have been identified for replacement for Fiscal <br /> <br />22E-1 <br />