200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: SEPTEMBER 13, 2022
FROM: FINANCE DEPARTMENT
SUBJECT: RATIFY AN INCREASE TO THE ANNUAL AGREEMENT FOR
AIRCRAFT JET FUEL
ATTACHMENT (Y/N): NO ITEM # 09
RECOMMENDATION:
That the City Council, by Motion, ratify the increase to the current Master Agreement with Epic Aviation LLC, by $210,000 for the as-needed purchase of aviation jet fuel for the period ending January 31, 2023, from a total of $190,000 to a not to exceed amount of $400,000 (plus applicable taxes) to account for the increases in jet fuel prices over the last 12 months.
DISCUSSION:
In January of 2018, Council approved a competitively bid agreement for bulk purchases of jet fuel. The initial award amount was $279,769 of which $190,000 was allotted to the City of Anaheim based on historical usage. The agreement was shared between Anaheim and the Orange County Fire Authority. Pricing was calculated using the Los Angeles Area Pipeline Mean spot price, icing inhibitor, surcharges, plus the vendor’s mark-up margin. Due to increases in jet fuel prices, the original agreement amount will no longer cover the City’s projected annual expense. Based on the current average usage per month provided by Anaheim Police Department (APD) staff, it was estimated that another $210,000 was needed to meet the City’s fuel requirements through the end of the current agreement. Staff requests the Council ratify the previously applied increase to the agreement in order to continue making regular payments to the vendor during the summer months. Ratification of the increase will allow the continued purchase of the fuel required for the Air Support Detail to provide continued support for the APD.
IMPACT ON BUDGET:
Sufficient funds are available in the Police Department’s Fiscal Year 2022/23 General Fund Budget.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Jorge Cisneros
Purchasing Agent Chief of Police