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Home My WebLink About2006/09/19 Item 3 COUNCIL AGENDA STATEMENT ITEM: MEETING DATE: 09/19/06 :3 SUBMITTED BY: REVIEWED BY: Resolution Authorizing the purchase of unleaded gasoline and diesel fuel on an as-needed basis from The SOCO Group, Inc., in accordance with terms and conditions of cooperative agreement 7325-05-Z-RFP 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. Director of Fin7Treasurer JK City Manager (jI (4/5ths vote: Yes_No~ ITEM TITLE: Approximately 186,500 gallons of unleaded and 125,000 gallons of diesel fuel are purchased annually for City use from fuel vendors. In addition, approximately 53,000 gallons of diesel fuel will be purchased for Transit use. (Not included in this Council Action is approximately 100,000 gallons of unleaded gasoline purchased from the County of San Diego.) RECOMMENDATION: That Council adopt the resolution authorizing bulk purchase of unleaded gasoline and diesel fuel on an as-needed basis from The SOCO Group, Inc., in accordance with terms and conditions of City of San Diego Request for Proposal #7325-05-Z-RFP. BOARDS/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The City of Chula Vista has purchased fuel through cooperative agreements with the City of San Diego since 1995. These agreements have worked well and have eliminated the necessity for Chula Vista to bid out fuel as a standalone requirement. Due to the constant rise in fuel prices the City of San Diego originated a Request For Proposal to seek price discounts based on an economy of scale. Request For Proposal #7325-05-0Z-RPF was issued as a cooperative procurement initiative, which included the City of San Diego and thirty-one other public agencies throughout San Diego County (list attached). The estimated total annual amount offuel to be purchased was 15,000,000 gallons. Fifty-one vendors were contacted. No local vendors responded because there are no commercial fuel suppliers in the City of Chula Vista that meet proposal requirements. Five proposals were received. The bid was awarded on a cost ranking established by an estimated usage by the City of San Diego. Vendor Name Total Extended Price The SoCo Group (Carlsbad, CA) $8,118,094 Southern Counties Oil/SC Fuels (Orange, CA) $8,301,444 Falcon Fuels, Inc. (Paramount, CA) $8,356,339 Plavan Petroleum (San Diego, CA) $8,536,516 Buck Petroleum (El Cajon, CA) Incomplete 3-1 Page 2, Item _ Meeting Date 09/19/06 The City ofChula Vista was named a primary agency in the RFP. Chula Vista provided usage data and delivery points and is entitled to all rights and privileges delineated in the proposal. DECISION MAKER CONFLICTS: Staff has reviewed the decision contemplated by this action and 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. FISCAL IMPACT: Using pricing figures from the City of San Diego's analysis, the annual cost for unleaded gasoline and diesel fuel purchased through this contract is estimated to be $863,296. There are sufficient funds included in the. Central Garage Operations budget for this contract; no appropriations are required as a result of approval of this item. 3-2 Attachment Meeting Date 09/19/06 List of participating Pnblic Agencies (From the City of San Diego report to the City Council RFP 7325-05-Z-RFP) Due to the constant rise in fuel prices, the City of San Diego led the effort to seek additional potential price discounts based on an economy of scale and also assist other public agencies, by issuing Request for Proposal Number 7325-05-A-RFP as a cooperative procurement initiative, which included the City of San Diego and thirty-one (31) other various public agencies throughout the County of San Diego as listed below. Chula Vista Elementary School District City of Carlsbad City of Chula Vista City of Coronado City of Escondido City of La Mesa City of Oceanside City of Santee County of San Diego Escondido Union High School District Grossmont Union High School District Lemon Grove School District Miracosta Community College National City Transit North County Transit District Ramona Unified School District Rancho Santa Fe Fire District San Diego Community College District San Diego County Office of Education San Diego State University San Diego "Transit Corporation San Diego Unified Port District San Diego Zoo San Dieguito Union High School District San Pasqual Union School District South Bay Union School District Southwestern Community College District Sweetwater Authority Sweetwater Union High School District Vista Unified School District Yuma Municipal Water District 3-3 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF UNLEADED GASOLINE AND DIESEL FUEL ON AN AS- NEEDED BASIS FROM THE SOCO GROUP, INC., IN ACCORDANCE WITH TERMS AND CONDITIONS OF COOPERATIVE AGREEMENT 7325-05-Z-RFP 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, approximately 186,500 gallons of unleaded and 125,000 gallons of diesel fuel are purchased annually for the City ofChu1a Vista's use from fuel vendors; and WHEREAS, approximately 53,000 gallons of diesel fuel will be purchased for transit use; and WHEREAS, the City of Chula Vista has purchased fuel though cooperative agreements with the City of San Diego since 1995. These agreements have worked well and have eliminated the necessity for Chula Vista to bid out fuel as a standalone requirement; and WHEREAS, the City of San Diego originated and issued Request for Proposal No. 7325- 05-Z-RFP as a cooperative procurement initiative, which included the City of San Diego and thirty-one other public agencies throughout San Diego County; and WHEREAS, five proposals were received, none in Chula Vista because there are no local commercial fuel supplies that meet proposal requirements. The bid was awarded to The SOCO Group, Inc., on a cost ranking established by an estimated usage by the City of San Diego; and WHEREAS, using pricing figures from the City of San Diego's analysis, the annual cost for unleaded gasoline and diesel fuel purchased through this contract is estimated to be $863,296. The Central Garage Operations has $1,499,996 budgeted for fuel and includes the anticipated purchase of $240,000 of unleaded gasoline from the County of San Diego, approved in Resolution 2004-002. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the purchase of unleaded gasoline and diesel fuel on an as-needed basis from The SOCO Group, Inc., in accordance with terms and conditions of Cooperative Agreement 7325-05-Z-RFP 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. Presented by Approved as to form by Maria Kachadoorian Director of Finance J :\Attomey\RESO\FINANCE\Purchase of diesel fuel on as-needed basis. doc 3-4