HomeMy WebLinkAbout22A - SPEC - DIESEL FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 3, 2010
TITLE: -
CONTRACT AMENDMENT AND
AWARD TO SC FUELS FOR DIESEL
FUEL
(SPEC. NO. 08-004 and 11-051)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 15t Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
1. Amend the contract with SC Fuels for diesel fuel by $50,000 for a total amount not to
exceed $300,000.
2. Award a contract with SC Fuels for the purchase of diesel fuel, petroleum products and
biodiesel for a one-year period with provision for four one-year renewals in an annual
amount not to exceed $325,000.
DISCUSSION
The Fleet Management-Central Stores 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
various Fire Stations. Soy biodiesel is being introduced as a new subdivision to our diesel fuel usage.
Santa Ana City Ordinance No. NS-2312 authorizes the City to purchase against contracts from any
public agency utilizing a competitive bid process. The SC Fuels' contract with The Cooperative
Purchasing Network (TCPN) for diesel fuel and products was awarded as a result of open,
competitive bidding, and meets the City's requirements. 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.
The current contract is based on the prior year's consumption and pricing. To date, the rising cost of
fuel at 27 percent has exceeded the anticipated rate increase of 12 percent projected last September
2010. Amending the contract will allow for the payment of invoices and will provide uninterrupted fuel
service until the new contract term becomes effective.
22A-1
Contract Amend and Award for Diesel Fuel
October 3, 2011
Page 2
FISCAL IMPACT
Funds are available in the Equipment Maintenance Garage Operation Gas & Diesel account (no.
07510100-63300).
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
KM
22A-2