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 $27,541.06
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 $27,541.06.
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. Fuel market volatility and the inability to obtain pricing that is valid for more than one day requires staff to bid and order fuel on the same day. As a result, formal bidding is not possible. The City's municipal code provides for such situations, but requires that the purchase be ratified by the City Council within 30 days of purchase.
On October 22, 2012, staff purchased motor fuels. The informal bid process resulted in four responses. The comparison in Attachment "1" shows the aggregate price, including sales tax and shipping.
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).
Additional fuel purchases are made approximately every 30-45 days, and if the purchase exceeds $20,000, it will be presented for City Council ratification.
Attachment:
1. Fuel Bid Comparison