Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 2, 2008 <br />TITLE: <br />CONTRACT RENEWAL FOR <br />UNLEADED FUEL <br />(SPEC. NO. 06-066) <br />~~ f~, <br />CI Y MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 15t Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with G.P. Resources, Inc., for the purchase of unleaded <br />fuel for a one-year period in an annual amount not to exceed $1,400,000. <br />DISCUSSION <br />The Fleet Division of the Finance and Management Services Agency provides <br />fuel for all City gasoline and diesel operated vehicles. The fuel is <br />stored in underground tanks located at the Corporate Yard, the Police <br />facility, and Fire Stations No. 1, 4, 5 and 6. <br />Pricing for the City's fuel purchases are based upon daily benchmarks <br />published by the Oil Price Information Service (OPTS), plus fixed fees and <br />applicable taxes. Prices in the volatile petroleum market have increased <br />considerably in the 12-month contract period. G.P. Resources, Inc., <br />projects the basic price of unleaded gasoline to follow the same volatile <br />pattern, absent the peak experienced in June 2008, through the current <br />fiscal year. <br />In response, the City has established a program to evaluate the use of <br />alternative fuels to reduce consumption of gasoline and diesel fuel. <br />Currently, all 11 of the City's street sweepers are fueled with compressed <br />natural gas (CNG). Since the 05/06 fiscal year, 21 gasoline/electric <br />hybrid vehicles have been added to the City fleet. In addition, the City <br />is testing hydrogen as an alternative fuel and currently operates five <br />hydrogen/electric hybrid vehicles. <br />22A-1 <br />