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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 16, 2013 <br />TITLE: <br />CONTRACT RENEWAL WITH <br />SC FUELS FOR UNLEADED AND <br />DIESEL FUEL (SPEC. NO. 11 -051) <br />/V <br />ITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on I" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with SC Fuels for unleaded and diesel fuel for a one -year period in an <br />amount not to exceed $1,325,000, subject to non - substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Fleet Division provides fuel for all City vehicles including <br />diesel- operated utility vehicles. Gasoline is stored in underground tanks located in the Corporate <br />Yard and Police Facility. As a result of the Fleet Division Alternative Energy Strategic Plan and <br />green initiative efforts, consumption of unleaded fuel has decreased by 2% percent since 2011. <br />The Alternative Energy Plan will further help reduce fuel consumption by transitioning 85 percent <br />of its fleet to alternative fuel vehicles by 2016. <br />On October 3, 2011, the City Council awarded a contract to SC Fuels for diesel fuel for a one - <br />year period, with provisions for four one -year renewals based on the contract with The <br />Cooperative Purchasing Network. On June 8, 2012 the City renewed a separate fuel contract <br />with G. P. Resources for unleaded gasoline. Effective February 1 2013, G. P. Resources merged <br />with SC Fuels resulting in SC Fuels supplying both unleaded and diesel fuel to the City. Pricing <br />for the City is based on daily benchmarks published by the Oil Price Information Service plus a <br />margin of $0.0175 per gallon. This equates to the lowest possible price per gallon /per day for <br />both fuel products. Staff recommends the second renewal of the contract <br />FISCAL IMPACT <br />Funds are available in the Finance and Management Services Equipment Maintenance Garage <br />Operation account (no. 07510100 - 63300). <br />Francisco Gutierrez sX <br />Executive Director <br />Finance and Management Services Agency <br />22C -1 <br />