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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 7, 2010 <br />TITLE: <br />CONTRACT RENEWAL FOR <br />DIESEL FUEL <br />(SPEC. NO. 08-004) <br />CI MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1s' Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with SC Fuels for the purchase of diesel fuel and petroleum products for a one- <br />year period in an annual amount not to exceed $250,000. <br />DISCUSSION <br />The Fleet Division of the Finance and Management Services Agency provides diesel fuel at the City's <br />Corporate Yard for all City diesel-operated vehicles. In addition to the underground fuel storage tanks <br />at the Corporate Yard, tanks are located at the police facility, and various Fire Stations. <br />On February 4, 2008, the City Council awarded a contract to SC Fuels for a one-year period, with <br />provisions for four one-year renewals. The vendor has performed satisfactorily during the past <br />contract period and has agreed to renew the contract at the same rate structure. Staff recommends <br />the second renewal of the contract. Over the past year there has been a general reduction in the <br />consumption of diesel fuel as a result of decrease use of diesel vehicles. Staff is evaluating the <br />current diesel fleet for potential downsizing. <br />FISCAL IMPACT <br />Funds are available in the Equipment Maintenance Garage Operation Gas & Diesel account (no. <br />07510100-63300). <br />t, Q? ?, <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />KM <br />22A-1