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FULL PACKET_2012-06-18
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FULL PACKET_2012-06-18
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4/6/2017 4:38:28 PM
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6/14/2012 6:02:14 PM
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City Clerk
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Agenda
Agency
Clerk of the Council
Date
6/18/2012
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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 18, 2012 <br />TITLE: <br />CONTRACT RENEWAL TO G.P. <br />RESOURCES FOR UNLEADED FUEL <br />AND OIL PRODUCTS <br />(SPEC. NO. 11-064) <br />r <br />CITY 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 2"d Reading <br />? Implementing Resolution <br />? Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with Maxum West dba G.P. Resources for the purchase of unleaded fuel <br />and oil products for a one-year period in an annual amount not to exceed by $1,050,000. <br />DISCUSSION <br />The Facilities, Fleet and Central Stores Division (FMCS) of the Finance and Management <br />Services Agency provides fuel for all City vehicles. Gasoline is stored in underground tanks <br />located in the Corporate Yard and the Police facility. Pricing for the City's fuel purchases are <br />based upon daily benchmarks published by the Oil Price Information Service (OPIS), plus <br />regulated fees. Oil prices vary widely throughout the year. G.P. Resources, Inc. reports this <br />price pattern will continue, with a minimal climb over last year's cost per gallon. Unleaded fuel <br />prices increased 2.9 percent from March 2011 to March 2012. <br />FMCS has established an alternative energy plan to convert 75-85 percent of the fleet to <br />alternative energy within the next five-years, budget permitting. The contracting of fire services <br />to the County Fire Authority, coupled with a trend of lower fuel consumption by the City results in <br />an anticipated decrease of approximately four percent in unleaded fuel and oil product cost in the <br />coming year. A greater savings will be realized in the contract for diesel fuel. <br />On December 19, 2011, the City Council awarded a contract to G.P. Resources, Inc. for <br />unleaded fuel, with provisions for five one-year renewals. The vendor has performed <br />satisfactorily during the past contract period and staff recommends the first renewal to the <br />contract. <br />22C-1
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