22C - SPEC - UNLEADED FUEL - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2012 TITLE: CONTRACT RENEWAL TO G.P. RESOURCES FOR UNLEADED FUEL AND OIL PRODUCTS (SPEC. NO. 11-064) r CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1s` Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contract with Maxum West dba G.P. Resources for the purchase of unleaded fuel and oil products for a one-year period in an annual amount not to exceed by $1,050,000. DISCUSSION The Facilities, Fleet and Central Stores Division (FMCS) of the Finance and Management Services Agency provides fuel for all City vehicles. Gasoline is stored in underground tanks located in the Corporate Yard and the Police facility. Pricing for the City's fuel purchases are based upon daily benchmarks published by the Oil Price Information Service (OPIS), plus regulated fees. Oil prices vary widely throughout the year. G.P. Resources, Inc. reports this price pattern will continue, with a minimal climb over last year's cost per gallon. Unleaded fuel prices increased 2.9 percent from March 2011 to March 2012. FMCS has established an alternative energy plan to convert 75-85 percent of the fleet to alternative energy within the next five-years, budget permitting. The contracting of fire services to the County Fire Authority, coupled with a trend of lower fuel consumption by the City results in an anticipated decrease of approximately four percent in unleaded fuel and oil product cost in the coming year. A greater savings will be realized in the contract for diesel fuel. On December 19, 2011, the City Council awarded a contract to G.P. Resources, Inc. for unleaded fuel, with provisions for five one-year renewals. The vendor has performed satisfactorily during the past contract period and staff recommends the first renewal to the contract. 22C-1