TITLE
Recommendation to adopt Specifications No. ITB FS17-019 and award contracts to Merrimac Energy Group and Airspace, LLC, dba JFI JetCenter, both of Long Beach, CA, as primary vendors and Falcon Fuels, Inc., of Paramount, CA, as the secondary vendor, for the purchase and delivery of petroleum fuels, in an annual aggregate amount not to exceed $3,000,000, for a period of three years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to award contracts to Merrimac Energy Group, Airspace, LLC, dba JFI JetCenter, and Falcon Fuels, Inc., for the purchase and delivery of petroleum fuels, including jet fuel, for an annual aggregate amount not to exceed $3,000,000, for a wide variety of vehicles and equipment used by City departments, as well as the Water and Harbor Departments. Annual costs are based on current expenditures and the U.S. Energy Information Administration website projections for petroleum fuels in the West Coast distribution region.
In 2016, the City purchased 986,450 gallons of unleaded fuel, 274,420 gallons of renewable diesel fuel, and 33,085 gallons of jet fuel. The total cost of petroleum fuel and renewable diesel fuel purchases was $2,701,200. Of the total 2016 City fuel purchases, more than 52 percent of the total used was renewable (diesel or Liquefied Natural Gas) as opposed to conventional, fossil fuel petroleum.
Of the City fleet, 24 percent of the vehicles use alternative fuel and more are being introduced each year. Despite reductions in petroleum fuel consumption, however, petroleum fuels are still needed for use in certain motorized vehicles, helicopters, generators and other equipment until alternatively fueled counterparts become available. The City currently operates 17 fuel sites storing and/or dispensing diesel and unleaded gasoline.
The bid was advertised in the Long Beach Press-Telegram on December 24, 2016, an...
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