HomeMy WebLinkAbout22G - UNLEADED FUEL REQUEST FOR
COUNCIL ACTION '
~..~t~
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
JANUARY 4, 2010
TITLE: APPROVED
? As Recommended
CONTRACT RENEWAL FOR ? As Amended
UNLEADED FUEL ? Ordinance on 1St Reading
? Ordinance on 2"d Reading
(SPEC . NO . 0 6 - 0 6 6 ) ? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
~'cf, ~ - FILE NUMBER
CITY MANAGER
RECOMMENDED ACT{ON
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 $900,000.
DISCUSSION
The Fleet Division of the Finance and Management Services Agency provides
fuel for all City vehicles, including 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. As in past years, prices in the volatile petroleum
market have repeated the same high season and low season, but with a
marked reduction in the price structure over the last 12 months. G.P.
Resources, Inc., projects the price on unleaded gasoline to follow the
same volatile pattern in the next contract cycle.
The City has established a program to evaluate the use of alternative
fuels to reduce consumption of gasoline and diesel fuel. Currently, all
11 of the City's street sweepers are fueled with compressed natural gas
(CNG) Since the 05/06 fiscal year, 21 gasoline/electric hybrid vehicles
have been added to the City fleet. The City reduced annual usage of
unleaded gasoline by 4.45% in 2009.
On June 5, 2006, The City Council awarded a contract to G.P. Resources,
Inc., 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 without an increase in pricing. Staff
recommends the third renewal of the contract.
22G-1
Contract Renewal for Unleaded Fuel
January 4, 2010
Page 2
FISCAL IMPACT
Funds are available in the Gas & Diesel account (no. 07510100 63300). The
amount of the contract is estimated, as the actual expenditures will
depend upon the requirements throughout the annual period.
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
KM/06-066R3
22G-2