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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 2, 2007 <br />TITLE: <br />CONTRACT AWARD FOR <br />DIESEL FUEL <br />(SPEC. NO. 06-191) <br />.l.!«.~ - <br />ITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1 ~~ Reading <br />^ Ordinance on Intl Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <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 />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, tanks are located at the Police facility, and <br />Fire Stations No. 1, 4, 5 and 6. <br />The rising cost of fuel has impacted the purchase price of diesel fuel and <br />petroleum products reflecting a 41 percent price increase in 2006. <br />However, currently the diesel fuel price is the lowest it has been in 2006. <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 />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 />22E-1 <br />