HomeMy WebLinkAbout22C - SPEC - UNLEADED FUELREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 18, 2012
TITLE:
CONTRACT RENEWAL TO G.P.
RESOURCES FOR UNLEADED FUEL
AND OIL PRODUCTS
(SPEC. NO. 11-064)
r
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1s` Reading
? Ordinance on 2"d Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Renew the contract with Maxum West dba G.P. Resources for the purchase of unleaded fuel
and oil products for a one-year period in an annual amount not to exceed by $1,050,000.
DISCUSSION
The Facilities, Fleet and Central Stores Division (FMCS) of the Finance and Management
Services Agency provides fuel for all City vehicles. Gasoline is stored in underground tanks
located in the Corporate Yard and the Police facility. Pricing for the City's fuel purchases are
based upon daily benchmarks published by the Oil Price Information Service (OPIS), plus
regulated fees. Oil prices vary widely throughout the year. G.P. Resources, Inc. reports this
price pattern will continue, with a minimal climb over last year's cost per gallon. Unleaded fuel
prices increased 2.9 percent from March 2011 to March 2012.
FMCS has established an alternative energy plan to convert 75-85 percent of the fleet to
alternative energy within the next five-years, budget permitting. The contracting of fire services
to the County Fire Authority, coupled with a trend of lower fuel consumption by the City results in
an anticipated decrease of approximately four percent in unleaded fuel and oil product cost in the
coming year. A greater savings will be realized in the contract for diesel fuel.
On December 19, 2011, the City Council awarded a contract to G.P. Resources, Inc. for
unleaded fuel, with provisions for five one-year renewals. The vendor has performed
satisfactorily during the past contract period and staff recommends the first renewal to the
contract.
22C-1
Contract Renewal for Unleaded Fuel and Oil Products
June 18, 2012
Page 2
FISCAL IMPACT
Funds are available in the Equipment Maintenance Garage Operation
no. 07510100-63300); and the Equipment Maintenance for petroleum
07510100-63202). The amount of the fuel contract is estimated, as the
depend upon the requirements through the annual contract period.
3 "\?? -, 71, C , ---? "?)-
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
KM
Gas & Diesel (account
products (account no.
actual expenditures will
22C-2