TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Merrimac Energy Group for the purchase of unleaded, diesel, bio-diesel and Jet A fuel, on the same terms and conditions afforded to Saddleback Valley Unified School District, Foothill Transit Agency, City of Anaheim and County of Los Angeles, in an amount not to exceed $5,000,000 including tax, for one year with the option of renewing for two additional one-year periods, plus a
25 percent contingency if necessary and if funds are available. (Citywide)
DISCUSSION
City Council approval is being requested authorizing the City Manager to execute a contract with Merrimac Energy Group for the purchase of unleaded, diesel, bio-diesel (B20 blend) and Jet A fuel to support City-owned equipment and vehicles.
The City Charter provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The Department of Financial Management, Purchasing Division, has investigated procurement options and discovered that Merrimac Energy Group (Long Beach, CA, WBE) has contracts with the following agencies pursuant to a competitive bid process:
· Saddleback Valley Unified School District for unleaded fuel
· Foothill Transit Agency for diesel fuel
· City of Anaheim for bio-diesel
· Los Angeles County for Jet A fuel
In conjunction with the Department of Public Works, Fleet Services Bureau, it was determined that the fuel specifications meet the City's requirements. This cooperative purchase agreement will facilitate the timely acquisition of fuel and provide a number of cost benefits to the City.
This matter was reviewed by Deputy City Attorney Amy R. Burton on September 2, 2008 and Budget Management Officer Victoria Bell on September 3, 2008.
SUSTAINABIL...
Click here for full text