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<br />REQUEST FOR <br />COUNCIL ACTION <br /> <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />CITY COUNCIL MEETING DATE: <br /> <br />JANUARY 2, 2007 <br /> <br />TITLE: <br /> <br />CONTRACT AWARD FOR <br />DIESEL FUEL <br />(SPEC. NO. 06-191) <br /> <br />APPROVED <br />D As Recommended <br />D As Amended <br />o Ordinance on 1 st Reading <br />D Ordinance on 2nd Reading <br />D Implementing Resolution <br />D Set Public Hearing For <br /> <br />~~ <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Award a contract to SC Fuels for the purchase of diesel fuel and petroleum <br />products for a one-year period in the annual amount not to exceed $325,000. <br /> <br />DISCUSSION <br /> <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, tanks are located at the Police facility, and <br />Fire Stations No.1, 4, 5 and 6. <br /> <br />The rising cost of fuel has impacted the purchase price <br />petroleum products reflecting a 41 percent price <br />However, currently the diesel fuel price is the lowest <br /> <br />of diesel fuel and <br />increase in 2006. <br />it has been in 2006. <br /> <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, including street <br />sweepers. Currently, eight of 11 street sweepers are CNG units with two <br />more CNG units scheduled for delivery by year-end 2006. The final diesel <br />street sweeper CNG replacement has been ordered with a delivery date of May <br />2007. <br /> <br />Additionally, under the new Hybrid and Alternative Fuel Vehicle Acquisition <br />Policy, ten hybrid vehicles were purchased in 2006, and added to the seven <br />hybrid vehicles purchased in the preceding two years. The City has also <br />implemented and is testing hydrogen as an alternative fuel. There are <br />currently five hydrogen vehicles in the City's fleet. <br /> <br />22E-1 <br />