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sr-022812-3iID City of City Council Report Santa Monica City Council Meeting: February 28, 2012 Agenda Item: '3-1 To: Mayor and City Council From: Gigi Decavalles- Hughes, Director of Finance Subject: Extension of Contract for Purchase of Unleaded Gasoline Recommended Action Staff recommends that the City Council authorize a two -month extension to purchase orders 18609 -OF, 19481 -OF, and 19139 -OF with SC Fuels to continue purchasing premium and regular unleaded gasoline as required by the Fleet Management Division, Fire Department, and Big Blue Bus in an estimated amount of $115,550 for new total amount of $3,564,938. Executive Summary Staff recommends that the City Council authorize a two -month extension to continue purchasing premium and regular unleaded gasoline through SC Fuels, as required by the Fleet Management Division, Fire Department and Big Blue Bus, at specified per - gallon prices, in an estimated amount of $115,550 for a new total amount of $3,564,938. The extension will allow for a competitive bid process specific to the City of Santa Monica to be completed. Background , At its February 13, 2007 meeting, Council approved purchase orders to SC Fuels to supply and deliver premium and regular unleaded gasoline to the Fleet Management Division, Fire Department, and Big Blue Bus. The City participated in a cooperative bid conducted and led by the Los Angeles County Metropolitan Transportation Authority ( LACMTA), along with Montebello Bus Line for the solicitation to supply and deliver premium gasoline. The bid award was for a 24 -month period beginning February 2007 with three additional one -year renewal options at specified increases. Recently, LACMTA conducted an independent bid that allows for government agencies to secure the fuel at the same price. However, in order to ensure that the City receives the best 1 price and service, staff requests bids to provide the City fuel. This bid is anticipated to be completed by April 30, 2012. Discussion The City currently has emergency response vehicles in the fleet that have operated on 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. Obtaining a two - month extension for the purchase and delivery of gasoline from SC Fuels would allow for uninterrupted fueling services. Additionally, the extension would allow staff enough time to complete the bidding process to ensure that the City receives the best price and service. For future gasoline purchases, a recommendation for fuel purchasing will be presented to Council in April 2012. Staff recommends that the City Council authorize a two -month extension to continue purchasing premium and regular unleaded gasoline through SC Fuels, as required by the Fleet Management Division, Fire Department and Big Blue Bus, at specified per - gallon prices, in an estimated amount of $115,550 for a new total amount of $3,564,938. 2 Financial Impacts & Budget Actions The purchase order amendment to be awarded to SC Fuels is $115,550 for a new purchase order total of $3,564,938. Funds are included in the FY11 -13 budget at the following accounts: 54459.522910 "Vehicles -Fuels /Lubrication" $9,000 01312.522910 "Vehicles -Fuels /Lubrication" $8,550 41654.522961 "Fuel - Service Vehicles" $98,000 Total $115,550 Prepared by: Monica Diaz, Buyer Approved: Gigi Decavalles -Hu es Director of Finance 3 Forwarded to Council: Rod Gould City Manager