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SR-205-008 (3) e .- J City of Santa Moniea~ City Council Report City Council Meeting: February 13, 2007 Agenda Item: 1:- D To: Mayor and City Council From: Carol Swindell, Chief Financial Officer Subject: Award Purchase Orders for Unleaded Gasoline Recommended Action Staff recommends that the City Council award purchase orders to SC Fuels to supply and deliver premium and regular unleaded gasoline as required by the Fleet Management Division, Fire Department, and Big Blue Bus. Executive Summary Award purchase orders to supply and deliver premium and regular unleaded gasoline as required by the Fleet Management Division, Fire Department, and Big Blue Bus to SC Fuels at specified per-gallon prices, in an estimated amount of $693,000 annually. The bid award is for a 24-month period beginning February 2007 with three additional one-year renewal options at specified price increases. The total estimated expenditure for the five-year term is $3,449,388. Discussion Backqround The City currently has emergency response vehicles in the fleet that operate on 1 premium and regular unleaded gasoline. These vehicles include Police motorcycles, patrol and detective cars, and various Fire emergency response vehicles. The City's reduced emission fuel policy currently allows an exception for the use of unleaded gasoline when required to operate emergency response vehicles. The Fleet Management Division, Big Blue Bus, and Fire Department maintain fuel storage tanks at their locations where these emergency response vehicles obtain fuel. Vendor Selection The City participated in a cooperative bid led by Los Angeles County Metropolitan Authority (LACMT A), along with Montebello Bus Line, for the solicitation to supply and deliver premium and regular unleaded gasoline. Bid forms were mailed to ten vendors and notices were advertised in four newspaper publications. Four bids were received and opened per Attachment A. Bids were evaluated based on competitive pricing and the estimated annual usage of each agency participating in the bid. Based upon these criteria, SC Fuels is recommended as the best bidder. Budget/Financial Impact Since Fiscal Year 2006/2007 has begun, the estimated expenditure for the remainder of the fiscal year will be $231,000. Funds are available for the amount of $231,000 in the following accounts: 2 . $50,000 in account 54461.522910, "Vehicles-Fuels/Lubrication" . $2,000 in account 01312.522910, "Vehicles-Fuels/Lubrication" . $179,000 in account41.111007, "Inventory- Premium Unleaded", which is initially recorded as inventory and will be expensed as fuel is dispensed. Budget authority for subsequent years will be included in each annual proposed City budget. Prepared by: Diane Howell, Purchasing Agent Approved: Forwarded to Council: ~LJ!jJ Carol Swinde Chief Financial Officer Attachments: Attachment A - Pricing 3 e o +:; cu :J .c cu ..... 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