City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01519 9/24/2024 Consent Item 12.
Cooperative Purchase Contract: Various Types of Fuels and Lubricants [Published for 10-Day Review on 09/13/2024]
File ID: 2024-01519
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the cooperative purchase agreement from the Sacramento Area Council of Governments (SACOG) with Hunt & Sons, LLC. (Contract No.
CT250004) for the purchase of various types of fuel that includes a total not to exceed of $32,000,000 until the contract is no longer available for use; 2) approving the use of the cooperative purchase contract (sub-agreement) from SACOG with Hunt & Sons, Inc. (Contract No.CT250003) for the purchase of propane and lubricants for a total amount not to exceed $250,000 until the contract is no longer available for use; and 3) authorizing the City Manager or the City Manager’s designee to execute the purchases specified above.
Contact: Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Contracts
Description/Analysis
Issue Detail: The Fleet Management Division of the Department of Public Works procures and supplies various types of fuel to meet the needs of the City’s fleet vehicles and equipment. SACOG solicits bids for fuel and lubricants for many local governments and municipalities to obtain a lower costs due to the amount of supplies purchased. The current contract is expiring; therefore, a new bid was conducted which requires new purchasing authority and City Council approval.
Policy Considerations: The recommendations in this report are in accordance with City Code Section 4.04.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to the City
File ID: 2024-01519 9/24/2024 Consent Item 12.
Council action. The use of a cooperative purchasing agreement is an exception to competitive bidding requirements. (City Code Section 3.56.240). This item was published for 10-day review on September 13, 2024, incompliance with the City Code.
Economic Impacts: None.
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase various fuels and lubricants for City vehicles and equipment and is not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act (CEQA) guidelines.
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478). SACOG’s cooperative purchase contract with Hunt & Sons, LLC will provide renewable diesel fuel to the City which is produced using fats, oils, or greases rather than petroleum. This fuel is chemically like petroleum diesel but is 100% renewable and sustainable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This contract has been competitively bid, meets the needs of the City’s fleet, offers better pricing than the City would receive through its own bid process due to a higher purchase volume, and eliminates the lengthy process of bidding and executing individual City contracts.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Financial Considerations: Purchases under the recommended cooperative purchase contract will be made from the Department of Public Works Fiscal Year (FY) 2024/2025 operating budget (Fleet Fund, Fund 6501) and charged to the appropriate Department’s operating budget. Fuel costs are a routine and necessary cost associated with the City’s operations.
File ID: 2024-01519 9/24/2024 Consent Item 12.
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived for the City’s use of cooperative purchase contracts that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.