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HomeMy WebLinkAbout2012/02/28 Item 04CITY COUNCIL. AGENDA STATEMENT ,,,;~;;,~ can of CHULAVISTA 2/28/12, Item 7 ITEM TITLE: SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF MOTOR VEHICLE FUEL, ON AN AS-NEEDED BASIS FROM SOCO GROUP, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF REQUEST FOR PROPOSAL NUMBER 10015195-12-Z AND THE COOPERATIVE AGREEMENT WITH THE CITY OF SAN DIEGO, FOR BEGINNING DATE OF AWARD, WITH FOUR ADDITIONAL ONE-YEAR PE D~ DIRECTOR OF PUBLIC WORKS ADMINISTRATIVE S VICES AGER CITY MANAGER ASSISTANT CITY NAGER Lj~ A PERIOD OF ONE YEAR OPTIONS TO RENEW FOR ~~ 4/STHS VOTE: YES ^ NO SUMMARY Approximately 109,100 gallons of gasoline and 104,400 gallons of biodiesel are purchased annually for use in City vehicles and equipment. The City of San Diego has issued a Request for Proposal (RFP) and awarded a contract for the purchase of various motor vehicle fuels. The City of Chula Vista Municipal Code Section 2.56.140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage. The City of San Diego participated in a competitive bid process. The City now has an opportunity to participate in a current City of San Diego bid for favorable terms and pricing. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of continuing city administrative/maintenance activities, which will not result in any adverse physical change or impact to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. 4-1 2/28/12, Item 2 of 2 BOARDS/COMMISSION RECOMMENDATION Not applicable DISCUSSION The SoCo Group was one of 286 potential proposers contacted by the City of San Diego, and one of three proposers who responded to the RFP to supply various motor vehicle fuels at a predictable price. The City of San Diego staff conducted an extensive analysis and evaluation of the proposals that were received, and has determined the proposal submitted by The SoCo Group to provide motor vehicle fuel to be the best overall value and in the best interest of the City of San Diego. The City of Chula Vista was named in the RFP as a participating agency, one of 21 agencies in addition to the City of San Diego, so that the proposers would be aware of our intention to purchase fuel under this agreement. The price of the fuel is determined on the date of delivery, and is based upon the Oil Price Information Service (OPIS) "Unbranded Low Rack" fuel price benchmark for. San Diego. The "Unbranded Low Rack" is a snapshot of the lowest supplier fuel price posting in the OPIS rack market for the day. The RFP required contractors to propose a market differential for the OPIS rack market for each given delivery item listed in the RFP. The market differential is a four-digit decimal numerical value, that is added to the benchmark index for the price of a given fuel product. The market differential includes all cost and profit components determined by the contractor, excluding any applicable fuel taxes. The rack price plus the market differential is the total price to be paid by the City upon delivery of fuel. To ensure the City is receiving the best possible price, staff will monitor the fuel delivery invoices and the OPIS rack market price on a daily basis. The City of San Diego contract is for one year, with four annual one-year renewal options. Staff recommends that SoCo Group be awarded the purchasing agreement as the lowest responsive bidder. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT FISCAL YEAR IMPACT Sufficient funds have been budgeted in Central Garage for the purpose of purchasing motor vehicle fuel. There is no direct fiscal impact from approving this resolution in that funds expended for subsequent fiscal years will have been approved through the normal budget or appropriation process. ONGOING FISCAL IMPACT There is no direct ongoing fiscal impact from approving this resolution in that funds expended for subsequent fiscal years will have been approved through the normal budget or appropriation process. ATTACHMENT List of Participating Agencies Prepared by: Steve Dorsey, Fleet Manager, Public Works H.' IPUBLIC WORKSIAGENDAI CAS2012102-28-121Agenda Statement - SoCo Group (4). doc 4-2 PARTICIPATING AGENCIES City of Carlsbad City of Chula Vista City of Coronado City of La Mesa City of Santee County of San Diego Escondido Union High School District La Mesa Spring Valley School District Metropolitan Transit System Port of San Diego Rancho Santa Fe Fire Protection District San Diego Community College District San Diego County Office Of Education San Diego Metropolitan Transit System San Diego Unified School District Zoological Society of San Diego -San Diego Zoo and San Diego Zoo Safari Park San Dieguito Union High School District South Bay Union School District Sweetwater Authority Sweetwater Union High School District 4-3 RESOLUTION 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF MOTOR VEHICLE FUEL, ON AN AS-NEEDED BASIS FROM SOCO GROUP, 1N ACCORDANCE WITH THE TERMS AND CONDITIONS OF REQUEST FOR PROPOSAL NUMBER 10015195-12-Z AND THE COOPERATIVE AGREEMENT WITH THE CITY OF SAN DIEGO, FOR A PERIOD OF ONE YEAR BEGINNING DATE OF AWARD, WITH OPTIONS TO RENEW FOR FOUR ADDITIONAL ONE-YEAR PERIODS WHEREAS, the City of Chula Vista ("City") purchases approximately 104,400 gallons of biodiesel and 109,100 gallons of gasoline annually; and WHEREAS, the City of San Diego issued an Request for Proposal {"RFP"} for the purchase of various motor vehicle fuels, utilizing a competitive bid process, which the City's purchasing agent determined to be consistent with good purchasing practices; and WHEREAS, the Soco Group was one of 286 potential proposers contacted by the City of San Diego, and one of three proposers who responded to the RFP to supply various motor vehicle fuels at a predictable price; and WHEREAS, the City of San Diego staff conducted an extensive analysis and evaluation of the proposals that were received, and determined the proposal submitted by The Soco Group to provide motor vehicle fuel to be the best overall value and in the best interest of the City of San Diego, and WHEREAS, the City of Chula Vista Municipal Code Section 2.56.140 authorizes the City to participate in cooperative bids with other government agencies for the purchase of materials of common usage; and WHEREAS, the City of Chula Vista was named in the RFP as a participating agency, one of 21 agencies in addition to the City of San Diego, so that the proposers would be aware of the City's intention to purchase fuel under this agreement, and WHEREAS, as a result of the RFP, the City of San Diego entered into a contract with The Soco Group; and WHEREAS, the RFP and the resultant contract allow, but do not obligate, the City of Chula Vista to purchase fuel from The Soco Group pursuant to the terms of the RFP and the contract, and require The Soco Group to provide fuel to the City of Chula Vista, and the other participating agencies, at the prices bed in response to the RFP; and 4-4 Resolution No. Page 2 WHEREAS, the contract price for the various fuels contemplated. in the RFP is based upon the Oil Price Information Service (OPIS) "Unbranded Low Rack" daily fuel price in San Diego and such pricing represents the best value for the City of Chula Vista. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the purchase of motor vehicle fuel, on an as-needed basis, from The Soco Group, in accordance with the terms and conditions of Request for Proposal number 10015195-12-z and the Cooperative Agreement with the City of San Diego (copies of which are on file with the City Engineer) for a period of one year beginning on date of award, with options to renew for four additional one-year periods. Presented by Richard A. Hopkins Director of Public Works/City Engineer Approved as to form by >~~ Glen R. Googins '~ ' (; ~~ City Attorney ~ U 4-5