HomeMy WebLinkAbout22E - UNLEADED FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 20, 2007
TITLE:
CONTRACT RENEWAL FOR
UNLEADED FUEL
(SPEC. NO. 06-066)
~1,
CI ANAGE
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1~~ Reading
^ Ordinance on 2n° Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Renew the contract with G.P. Resources, Inc., for the purchase of unleaded
fuel for a one-year period in an annual amount not to exceed $1,320,000.
DISCUSSION
The Fleet Division of the Finance and Management Services Agency provides
diesel and unleaded fuel for all City gasoline and diesel operated
vehicles. The fuel is stored in underground tanks located at the Corporate
Yard, the Police facility, and Fire Stations No. 1, 4, 5 and 6.
Pricing for the City's fuel purchases are based upon daily benchmarks
published by the Oil Price Information Service (OPIS) plus fixed fees and
applicable taxes. Prices in the volatile petroleum market have increased
58 percent since January 2007 and G.P. Resources, Inc., projects the basic
price of unleaded gasoline to follow the same pattern through the current
fiscal year.
As a result of the volatile petroleum market, the City has established a
program to evaluate the use of alternative fuels where applicable to reduce
consumption of gasoline and diesel fuel. Currently, ten of the City's
eleven street sweepers are fueled with compressed natural gas (CNG). Since
the 05/06 fiscal year, 12 gasoline/electric hybrid vehicles have been added
to the City fleet. In addition, the City is testing hydrogen as an
alternative fuel and currently operates five hydrogenfelectric hybrid
vehicles.
On June 5, 2006, Th
Inc., for a one-year
vendor has performed
agreed to renew the
recommends the first
e City Council awarded a contract to G.P. Resources,
period with provision for four, one-year renewals. The
satisfactorily during the past contract period and has
contract without an increase in base pricing. Staff
renewal of the contract.
22E-1
Contract Renewal for Unleaded Fuel
August 20, 2007
Page 2
FISCAL IMPACT
Funds are available
(no. 75-111-6382).
expenditures will
period.
in the Equipment
The amount of the
depend upon the
Maintenance
contract is
requirements
l1 Francisco Gutierrez J
executive Director
Finance and Management Services Agency
FG/KM/06-066R1.2:uc
Garage Operation account
estimated, as the actual
throughout the annual
22E-2