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