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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 20, 2016 <br />TITLE; <br />AGREEMENT WITH IPC FUEL <br />DISTRIBUTION, A SANTA ANA VENDOR, <br />FOR THE PURCHASE OF UNLEADED AND <br />DIESEL FUEL <br />(STRATEGIC PLAN NO. 6,2) <br />e --Q, , � - <br />ITY MANAGER <br />1:7FM15161004WIMIllus ►1 <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s` Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a one-year agreement from <br />January 1, 2017 through December 31, 2017 with IPC Fuel Distribution for the purchase of <br />unleaded and diesel fuel in a total amount not to exceed $950,000, subject to non -substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The City has an inventory of nearly 500 vehicles that use unleaded or diesel fuel. Over the past <br />several years, Finance and Management Services Agency - Fleet Services has utilized a <br />cooperative agreement with SC Fuels from Orange, California to provide fuel for these vehicles. <br />The fuel storage tanks that are located at the City Corporate Yard and Police facility are very <br />large and as a result, the City can obtain the lowest pricing options due to the large one-time <br />delivery amount. Upon reviewing our scope and fuel delivery options, staff learned that there are <br />not any local county contracts that are similar in nature. Most other jurisdictions have much <br />smaller storage tanks which require more frequent and expensive deliveries. Staff has identified <br />though a contract between Ventura County and IPC Fuels that could be temporarily utilized until <br />a formal Request for Proposal process can be developed during calendar year 2017. <br />IPC Fuels is a Santa Ana based company and the delivery terms of their agreement with Ventura <br />County is very similar to our needs. Additionally, the pricing for this contract is approximately <br />$.04 cents a gallon less than our current pricing structure. The City currently has a sales tax <br />rebate agreement with IPC Fuels, but this agreement would have no impact on such payments <br />made to the vendor. All federal and state taxes and fees will be consistent with the existing <br />agreement and any future agreement. <br />25C-1 <br />