HomeMy WebLinkAbout22C - DIESEL FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 2, 2009
TITLE:
CONTRACT RENEWAL FOR
DIESEL FUEL
(SPEC. NO. 08-004)
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CITY ANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 151 Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Renew the contract with SC Fuels for the purchase of diesel fuel and
petroleum products for a one-year period in an annual amount not to exceed
$325,000.
DISCUSSION
The Fleet Division of the Finance and Management Services Agency provides
diesel fuel at the City's Corporate Yard for all City 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 City has established a program to move its fleet to alternative fuels,
where applicable. Additionally, the South Coast Air Quality Management
District (AQMD) Ruling 1186.1 and 1196 requires the City to move from
diesel engine vehicles to gasoline or alternative-fuel engines in the
heavy-duty category. The 11 street sweepers are all CNG units. However,
the City's fleet still consists of diesel-powered vehicles, including fire
engines and diesel powered back-up generators for emergency operations.
On February 4, 2008, the City Council awarded a contract to SC Fuels, for a
one-year period with provision for four one-year renewals. The vendor has
performed satisfactorily during the past contract period and has agreed to
renew the contract at the same rate structure. In the last year, the City
experienced a 67 percent gyration in the cost of diesel in the volatile
fuel market, currently paying the same cost as in early 2008. However, the
City's consumption has decreased by 1.85 percent, enabling the cost of the
renewal to remain at the same level as the prior year, $325,000. Staff
recommends the first renewal of the contract.
22C-1
Contract Renewal for Diesel Fuel
February 2, 2009
Page 2
FISCAL IMPACT
Funds are available in the Equipment Maintenance Garage Operation Gas &
Diesel account (no. 75-111-6382).
-~cFrancisco Gutierrez
'T Executive Director
Finance and Management Services Agency
FG/KM/08-004R
22C-2