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<br /> <br /> <br /> <br /> REQUEST FOR 4;, <br /> <br /> COUNCIL ACTION <br /> w <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> DECEMBER 19, 2011 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> CONTRACT AMENDMENT AND ? As Amended <br /> ? Ordinance on 1st Reading <br /> AWARD TO G.P. RESOURCES FOR ? Ordinance on 2nd Reading <br /> UNLEADED FUEL AND OIL ? Implementing Resolution <br /> PRODUCTS (SPEC. NO. 11-064) El Set Public Hearing For <br /> CONTINUED TO <br /> 1\~~ FILE NUMBER <br /> CITY MANAGER <br /> <br /> RECOMMENDED ACTION <br /> <br /> 1. Amend the contract with Maxum West dba G.P. Resources for unleaded fuel by $130,000 <br /> for a total amount not to exceed $1,220,000. <br /> <br /> 2. Award a contract with Maxum West dba G.P. Resources, Inc. for the purchase of <br /> unleaded fuel and oil products for a six month period in an amount not to exceed <br /> $625,000. <br /> DISCUSSION <br /> <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 <br /> fuel is stored in underground tanks located in the Corporate Yard, the Police facility, and Fire <br /> Station No. 1, 4, 5 and 6. 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 applicable taxes. <br /> <br /> The City has established a program to evaluate the use of alternative fuels to reduce <br /> consumption of gasoline and diesel fuel. Currently, all 10 of the City's street sweepers are <br /> fueled with compressed natural gas (CNG). Since the 05/06 fiscal year, 27 gasoline, electric, <br /> hybrid and hydrogen vehicles have been added to the City fleet. Furthermore FMCS has <br /> established a 5-year alternative energy plan to convert 75 - 85% percent of the fleet to <br /> alternative energy within the next five-years. The plan will vastly reduce fuel cost, carbon <br /> footprint, and the use of renewable energy in efforts of reducing the dependency on foreign oil. <br /> <br /> Oil prices have been volatile over the past several years and G.P. Resources, Inc. projects the <br /> price of unleaded petroleum to continue a steady climb. To date, the rising cost of fuel has <br /> increased 20 percent from January 2011 to December 2011. With higher than anticipated <br /> unleaded fuel rates, staff recommends amending the contract beyond the 10 percent change <br /> notice already approved for a contract total of $1,220,000 for payment of invoices, and provide <br /> uninterrupted fuel service until the new contract term becomes effective on January 1, 2012 (six <br /> month period). <br /> <br /> 22E-1 <br />