SR-081396-6N
PURCH:PW:DH:sd/f:\finance\purch\strfrpts\srbd2584
Councll Meeting: August 13, 1996 Santa Monica,
"N
califorlbt 1 3 1996
TO: Mayor and C~ty Council
FROM: Clty Staff
SUBJECT. Recommendation to Award Bid to Furnish and Dellver Diesel
Fuel, Bid #2584
Introduction
This report concerns an award of bid to furnish and dellver diesel
fuel at specified unlt prices, plus all applicable taxes, wlth
two(2) one-year renewal options.
Backqround
In response to publlshed Notices Inviting Bids (published June 19
and June 20, 1996) to furnish and deliver diesel fuel in accordance
wlth Clty speciflcations, b~ds were received and publicly opened
and read on July 1, 1996 Proposal forms were mailed to eighteen
vendors and notices were advertised ~n accordance wlth City Charter
and Municlpal Code prov~s~ons.
Eight proposals were recelved as
indicated in Attachment A.
In accordance wlth Resolution No. 8966 (Burma POIlCY), none of the
bldders do business in or with companies involved ln Burma.
In accordance with past practice of the City's fuel suppliers, fuel
prices are based on the weekly publication referred to as the ~Oil
Prlce Information Services n (OPIS) because of price volatility.
This means that bids for the diesel fuel are based on a "Flxed
- 1 -
"N
AUG , 3 1996
Adder or Discount" aga~nst this referenced price exclusive of all
taxes. The "OPIS" pr~ce published on Monday of each week will be
the basl.s for prl.ces of products delivered during the seven-day
period commenc~ng on Monday and running through the following
Sunday. It is necessary to establish a reference point by using
the "OPIS" publlcation ln a volat~le market.
Staff has evaluated the low bid and f~nds that it meets City
specif~catlons.
Budget/Financial Impact
Flscal Year 1996-97 appropriation authority for this purchase is
in the fuel accounts of various departments. Diesel fuel is
primarily used by the follow~ng departments: Environmental and
Public Works Management (Fleet), Fire, and Transportation. As the
diesel fuel is used, it wlll be expensed against available FY 1996-
97 appropriat~on author~ty. For the period July 1, 1996 through
June 30/ 1997, appropr~ation authority is set forth in the adopted
FY 1996-97 budget.
Recommendation
It is recommended that the award of Bid #2584 be made to General
Petroleum at spec~f~ed un~t prices, plus all applicable taxes/ as
the lowest and most responsible bidder.
Prepared By:
Pam Wortham, Purchasing Agent
Diane Howell, Buyer
7/26/96
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