AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH WESTERN STATES PETROLEUM, INC., FOR GASOLINE AND DIESEL FUEL, AND RATIFICATION OF EXPENDITURES
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Western States Petroleum, Inc., for gasoline and diesel fuel in a not to exceed amount of $15,300,000 for the entire term of the Agreement (initial term plus any renewals), and to authorize the City Manager to renew the Agreement, at the City Manager's discretion, for an additional two, one-year renewals, and to ratify previous expenditures in an approximate amount of $200,000 for fuel provided between October 1, 2016 and award of the Agreement. The initial term of the Agreement is effective October 1, 2016 through September 30, 2019.
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Background
In Fiscal Year 2015-16, the Fleet Management division of Public Works procured approximately 1.1 million gallons of fuel at a cost of approximately $2.1 million in gasoline and diesel fuel for use by the city fleet as staff drove over 7 million miles to deliver essential services to the community. The service areas that routinely consume the most fuel include Police, Fire, Solid Waste, Transportation, and Water Services.
On September 22, 2015, the city entered into a Linking Agreement with Supreme Oil, Contract No. C-10286, for the purchase of diesel and gasoline fuel, utilizing a cooperative purchase agreement with the City of Mesa. The initial term of the Agreement was effective through June 30, 2016, and the City of Mesa extended the agreement effective through September 30, 2016 allowing the city to follow suit and provide Fleet Management additional time to procure another vendor for fuel services.
Western States Petroleum, Inc. was awarded a bid by the City of Mesa for Gasoline and Diesel Fuel. Staff is requesting to utilize the cooperative purchase w...
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