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HomeMy WebLinkAbout22E - DIESEL FUEL REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: CITY COUNCIL MEETING DATE: JANUARY 2, 2007 TITLE: CONTRACT AWARD FOR DIESEL FUEL (SPEC. NO. 06-191) APPROVED D As Recommended D As Amended o Ordinance on 1 st Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For ~~ CONTINUED TO FILE NUMBER RECOMMENDED ACTION Award a contract to SC Fuels for the purchase of diesel fuel and petroleum products for a one-year period in the annual amount not to exceed $325,000. DISCUSSION The Fleet Division of Finance and Management Services Agency provides diesel and unleaded fuel at the City's Corporate Yard for all City gasoline and diesel operated vehicles. In addition to the underground fuel storage tanks at the Corporate Yard, tanks are located at the Police facility, and Fire Stations No.1, 4, 5 and 6. The rising cost of fuel has impacted the purchase price petroleum products reflecting a 41 percent price However, currently the diesel fuel price is the lowest of diesel fuel and increase in 2006. it has been in 2006. Overall, the City has established a program to move its fleet to alternative fuels, where applicable. With the South Coast Air Quality Management District (AQMD) Ruling 1186.1 and 1196 in calendar year 2000, the City is also required to move from diesel engine vehicles to gasoline or alternative-fuel engines in the heavy-duty category, including street sweepers. Currently, eight of 11 street sweepers are CNG units with two more CNG units scheduled for delivery by year-end 2006. The final diesel street sweeper CNG replacement has been ordered with a delivery date of May 2007. Additionally, under the new Hybrid and Alternative Fuel Vehicle Acquisition Policy, ten hybrid vehicles were purchased in 2006, and added to the seven hybrid vehicles purchased in the preceding two years. The City has also implemented and is testing hydrogen as an alternative fuel. There are currently five hydrogen vehicles in the City's fleet. 22E-1 Contract Award for Diesel Fuel January 2, 2007 Page 2 Santa Ana City Ordinance No. NS-2312 authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. G. P. Resources, contracted with County of Orange for unleaded fuel, was awarded as a result of open, competitive bidding, and meets the City's requirements. The County of Orange has elected to extend the current contract for an additional one-year period. G.P. Resources has approved offering the City the same contract terms and conditions for a one-year extension on the City's diesel fuel contract. FISCAL IMPACT Funds are available in the Equipment Maintenance Garage Operation Gas & Diesel account (account no. 75-111-6382). The amount of the contract is estimated, as the actual expenditures will depend upon the requirements throughout the annual period. ~\\<;\."""-~ ~ '" "'. > \\.--& 'd . ~ Francisco Gutierrez f Executive Director Finance and Management Services Agency FG/KM/06-191.2:uc 22E-2