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REQUEST FOR <br /> <br /> COUNCIL ACTION ' <br /> ~..~t~ <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> JANUARY 4, 2010 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> CONTRACT RENEWAL FOR ? As Amended <br /> UNLEADED FUEL ? Ordinance on 1St Reading <br /> ? Ordinance on 2"d Reading <br /> (SPEC . NO . 0 6 - 0 6 6 ) ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> ~'cf, ~ - FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACT{ON <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 $900,000. <br /> DISCUSSION <br /> The Fleet Division of the Finance and Management Services Agency provides <br /> fuel for all City vehicles, including gasoline and diesel operated <br /> vehicles. The fuel is stored in underground tanks located at the <br /> Corporate Yard, the Police 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 (OPIS), plus fixed fees and <br /> applicable taxes. As in past years, prices in the volatile petroleum <br /> market have repeated the same high season and low season, but with a <br /> marked reduction in the price structure over the last 12 months. G.P. <br /> Resources, Inc., projects the price on unleaded gasoline to follow the <br /> same volatile pattern in the next contract cycle. <br /> The City has established a program to evaluate the use of alternative <br /> fuels to reduce consumption of gasoline and diesel fuel. Currently, all <br /> 11 of the City's street sweepers are fueled with compressed natural gas <br /> (CNG) Since the 05/06 fiscal year, 21 gasoline/electric hybrid vehicles <br /> have been added to the City fleet. The City reduced annual usage of <br /> unleaded gasoline by 4.45% in 2009. <br /> On June 5, 2006, The City Council awarded a contract to G.P. Resources, <br /> Inc., for a one-year period with provision for four, one-year renewals. <br /> The vendor has performed satisfactorily during the past contract period <br /> and has agreed to renew the contract without an increase in pricing. Staff <br /> recommends the third renewal of the contract. <br /> 22G-1 <br /> <br />