Agenda Item
City Council
Item #: 3.27. 7/12/2022 File #: 22-0418
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Authorize purchase and delivery of diesel fuel and gasoline from Southern Counties Oil Co., a California Limited Partnership dba SC Fuels.
2. SUMMARY
Purchase and delivery of diesel and gasoline fuel for the City fleet.
3. RECOMMENDED ACTION
Approve the purchase agreement with Southern Counties Oil Co. a California Limited Partnership dba SC Fuels, in the amount not to exceed $1,440,000 for the purchase and delivery of diesel and gasoline fuel using a cooperative purchasing agreement from the City of Westminster; and authorize the Mayor and the City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this agreement is $1,440,000 and will be funded through (710) Fleet Maintenance Fund.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
SC Fuels is offering a cooperative purchasing contract for the acquisition of diesel and gasoline fuel.
Utilizing a cooperative purchase agreement with the City of Westminster, who has similar fuel consumption to Orange, Westminster awarded SC Fuels the bid for renewable vehicle fuel at its regular council meeting on September 9, 2020. Pricing will be based on the Oilfield Publication Information Service (OPIS) which varies daily as fuel is a publicly-traded commodity. The annual average fuel consumption for the City is 250,000 gallons of diesel and gasoline. The average price is $4.80 per gallon.
The agreement is for 12 months starting July 1, 2022, with two one-year extension options expiring on June 30, 2025. The not-to-exceed amount of the contract will be $1,440,000 for Fiscal Year 2023, City of Orange Printed on 7/7/2022Page 1 of 2
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Item #: 3.27. 7/12/2022 File #: 22-0418
on June 30, 2025. The not-to-exceed amount of the contract will be $1,440,000 for Fiscal Year 2023, which includes a 20% contingency for future price escalation.
SC Fuels currently supplies diesel and gasoline fuel to the city, and staff has determined they can continue to meet the needs of the City. Staff will continue to monitor the cost to ensure the City is getting the best value available.
7. ATTACHMENTS
· Agreement tag on with the City of Westminster
· Westminster Award Letter to SC Fuels
City of Orange Printed on 7/7/2022Page 2 of 2
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