Report to Mayor and City Council
Tuesday, June 20, 2017
Consent
SUBJECT:
Title
CONSIDER EXTENDING THE AGREEMENT WITH SC FUELS FOR BULK PURCHASING OF GASOLINE AND DIESEL FUEL (CITY COUNCIL)
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I. SUMMARY
The City's agreement for the purchase of bulk fuel (gasoline and diesel) will expire on June 30, 2017. The City originally awarded a three-year contract to Southern Counties Oil Company, dba SC Fuels, effective July 1, 2012 through June 30, 2015. In 2015 the City extended the contract for another year through July 1, 2016. On August 11, 2016 the City issued a purchase order to extend the contract for another six months through December 31, 2016. On January 24, 2017 the City issued a purchase order to extend the contract for another six months through June 30, 2017. Staff is recommending an extension of the agreement for an additional six month and approval of an additional sum of $157,400, while completing the bid process. Sufficient funds have been previously budgeted for this purchase.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the formal process for bidding and competitive proposals defined by the Carson Municipal Code, Chapter 6, of Title II, pursuant to Carson Municipal Code section 2611(f) ("Piggyback Purchasing").
2. APPROVE the extension of the agreement for bulk purchase of gasoline and diesel fuel with Southern Counties Oil Company, dba SC Fuels at a total cost of $157,400 ($144,600 for Unleaded Fuel and $12,800 for Diesel Fuel) through December 31, 2017.
3. AUTHORIZE the Mayor to execute the extension of the amendment with SC Fuels, following approval as to form by the City Attorney.
4. DIRECT staff to complete the competitive bidding process.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City's Warehouse Division is responsible for two underground fuel tanks located at the Corporate Yard - a 10,000 gallon capacity tank for 89 Octane Gasoline, and a 7,50...
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