TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Bruce Moe, Finance Director
Gwen Eng, General Services Manager
SUBJECT: Title
Ratification of Motor Fuel Purchase from Southern Counties Oil Co. in the Amount of $27,044.26
APPROVE
Body
____________________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bidding per Municipal Code Section 2.36.140 (waivers); and
b) ratify the purchase of fuel from Southern Counties Oil Co. in the amount of $27,044.26.
FISCAL IMPLICATIONS:
Sufficient funds are available in the Public Works Fleet budget for this purchase.
DISCUSSION:
The City operates a fueling station located at the City Yard. Our most recent contract for motor fuels was not renewed by the vendor because they wished to renegotiate the pricing structure. Additionally, because of the instability in wholesale fuel markets, few vendors are willing to enter into a contract, even with pricing indexed to market movements. Staff has determined that same day bidding and ordering (making formal bidding impractical) is the best method to secure deliveries.
On July 27, 2012, staff purchased motor fuels. The informal process resulted in the following bids:
Vendor & Total Bid (Incl. Tax)
1. Southern Counties Oil Co. $27,044.26
2. General Petroleum $27,296.85
3. Merrimac Energy Group $27,590.13
Southern Counties Oil Co. was the lowest bidder for this requirement. Because the total purchase exceeded the formal bid limit of $20,000, staff is now seeking City Council ratification for this expenditure, as required by Municipal Code Section 2.36.140 (waivers). Due to the change in City Council meeting schedule for August and need for motor fuels, this request is not within the required thirty (30) days ratification window.
Additional fuel purchases will be made approximately every 30-45 days, and if the purchase exceeds $20,000, it will ...
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