HomeMy WebLinkAboutAgenda Statement 1973/11/27 Item 09AGENDA ITEM N0. [ 9 ]
CHULA VISTA CITY COUNCIL MEETING OF: November 27, 1973
ITEM TITLE: Resolution - Authorizing San Diego Liquid Gas & Appliance Inc. to
Increase Price of Liquefied Petroleum Gas
INITIATED BY:
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Purchasing Agent
Council Resolution #6895, dated June 20, 1973, awarded the contract to San Diego
Liquid Gas & Appliance Inc. for the City's liquefied petroleum gas requirements
for the period June 15, 1973 through June 14, 1974. The contract price for delivery
to the Police facility and the Public Works Yard is $.19 per gal. The only other
bidder, Petrolane Gas Service, proposed $.284 per gallon for delivery to the Police
facility and $.318 for delivery to the Public Works Yard.
The Federal Government has allowed Atlantic-Richfield to increase the cost of
propane to San Diego Liquid Gas & Appliance Inc. by $.03 on August 20, 1973 and
an additional $.03 on October 1, 1973. Due to these increases, our supplier has
requested that the City authorize an i ncrease of $.06 to bring the unit price
to $.25 per gallon.
Vendors of LPG have been contacted regarding possible bids on our requirements
and they state that at this time they are unable to take on new customers due
to their allocation limitations.
ATTACHED: Resolution [X] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [X] No. ~,2
Financial Statement:
Commission-Board Recommendation:
Department Head Recommendation:
City Manager Recommendation:
Purchasing Agent recommends authorization to
increase unit price of liquefied petroleum
gas from $.19 to $.25 per gallon.
Concur with Department Head. Estimated cost impact is $3,000 additional. The option
of cancellation of the contract in lieu of allowing this request, in view of the fuel
shortage and the potention problems of securing new bids, makes this position the most
practical.
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