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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 4, 2008 <br />TITLE: <br />CONTRACT AWARD FOR <br />DIESEL FUEL <br />(SPEC. NO. 08-004) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 15~ Reading <br />^ Ordinance on 2"d 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, with the provision for four one-year <br />renewals, in an annual amount not to exceed $325,000. <br />DISCUSSION <br />The Fleet Division of the Finance and Management Services Agency provides <br />diesel fuel at the City's Corporate Yard for all City diesel-operated <br />vehicles. In addition to the underground fuel storage tanks at the <br />Corporate Yard, tanks are located at the Police facility, and Fire Stations <br />No. 1, 4, 5 and 6. <br />The City has established a program to move its fleet to alternative fuels, <br />where applicable. Additionally, the South Coast Air Quality Management <br />District (AQMD) Ruling 1186.1 and 1196 in year 2000 requires the City to <br />move from diesel engine vehicles to gasoline or alternative-fuel engines in <br />the heavy-duty category. To date, all 11 street sweepers are now CNG units, <br />as the final diesel sweeper was replaced in May 2007. However, the City's <br />fleet still includes diesel-powered vehicles, including fire engines. <br />Additionally, the City has been investing in back-up generators for <br />emergency operations, which are diesel-powered. Therefore, staff <br />recommends continuing the same dollar amount of $325,000 for the next <br />contract period. <br />22B-1 <br />