HomeMy WebLinkAbout22A - SPEC - UNLEADED FUEL AND OIL PRODUCTSOREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 22, 2011
TITLE:
CONTRACT RENEWAL TO G.P.
RESOURCES FOR UNLEADED FUEL
AND OIL PRODUCTS
(SPEC. NO. 06-066)
F t ?
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1St Reading
? Ordinance on 2nd 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 and oil products for a
one-year period in an annual amount not to exceed $990,000.
DISCUSSION
Facilities, Fleet and Central Stores (FMCS) 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 in 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. Oil prices have been
volatile over that past several years and G.P. Resources, Inc. projects the price of unleaded
petroleum to continue a steady climb.
Nevertheless, 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, 27 gasoline, electric, hybrid and
hydrogen vehicles have been added to the City fleet. The City reduced its annual usage of unleaded
gasoline by 5 percent to-date. Furthermore FMCS is establishing a 5-year alternative energy plan to
convert 75 - 85% percent of the City's fleet to alternative energy. The 5-year plan will vastly reduce
fuel cost, carbon footprint, and the use of renewable energy in efforts of reducing the dependency on
foreign oil.
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 on the base rate.
Staff recommends the final renewal of the contract.
22A-1
Contract Award for Unleaded Fuel and Oil Products
February 22, 2011
Page 2
FISCAL IMPACT
Funds are available in the Gas & Diesel account (no. 07510100 63300) and Equipment Maintenance
(no. 07510100 63202) for petroleum products. The amount of the fuel contract is estimated, as the
actual expenditures will depend upon the requirements through the annual period.
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
KM
22A-2