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OREQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 22, 2011 <br />TITLE: <br />CONTRACT RENEWAL TO G.P. <br />RESOURCES FOR UNLEADED FUEL <br />AND OIL PRODUCTS <br />(SPEC. NO. 06-066) <br />F t ? <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1St 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 G.P. Resources, Inc. for the purchase of unleaded fuel and oil products for a <br />one-year period in an annual amount not to exceed $990,000. <br />DISCUSSION <br />Facilities, Fleet and Central Stores (FMCS) Division of the Finance and Management Services <br />Agency provides fuel for all City vehicles, including gasoline and diesel-operated vehicles. The fuel is <br />stored in underground tanks located in the corporate yard, the Police facility, and Fire Stations No. 1, <br />4, 5 and 6. Pricing for the City's fuel purchases are based upon daily benchmarks published by the <br />Oil Price Information Service (OPIS), plus fixed fees and applicable taxes. Oil prices have been <br />volatile over that past several years and G.P. Resources, Inc. projects the price of unleaded <br />petroleum to continue a steady climb. <br />Nevertheless, the City has established a program to evaluate the use of alternative fuels to reduce <br />consumption of gasoline and diesel fuel. Currently, all 11 of the City's street sweepers are fueled <br />with compressed natural gas (CNG). Since the 05/06 fiscal year, 27 gasoline, electric, hybrid and <br />hydrogen vehicles have been added to the City fleet. The City reduced its annual usage of unleaded <br />gasoline by 5 percent to-date. Furthermore FMCS is establishing a 5-year alternative energy plan to <br />convert 75 - 85% percent of the City's fleet to alternative energy. The 5-year plan will vastly reduce <br />fuel cost, carbon footprint, and the use of renewable energy in efforts of reducing the dependency on <br />foreign oil. <br />On June 5, 2006, the City Council awarded a contract to G.P. Resources, Inc. for a one-year period <br />with provision for four, one-year renewals. The vendor has performed satisfactorily during the past <br />contract period and has agreed to renew the contract without an increase in pricing on the base rate. <br />Staff recommends the final renewal of the contract. <br />22A-1