TITLE:
title
AMENDMENT FOR UNLEADED FUEL PROCUREMENT AND DELIVERY SERVICES WITH PINNACLE PETROLEUM, INC.
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DEPARTMENT: PUBLIC WORKS/MAINTENANCE SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: ROBERT RYAN, MAINTENANCE SERVICES MANAGER, (714) 327-7499
RECOMMENDATION:
recommendation
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the agreement with Pinnacle Petroleum, Inc., increasing Fiscal Year 2021-2022's annual amount by $120,000 and increasing the annual not to exceed amount for subsequent years by $400,000, resulting in annual allocation of $800,000.
2. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement.
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BACKGROUND:
The City's Public Services Department, Equipment Maintenance Section, is responsible for maintaining a total of twelve (12) fuel storage tanks and ensuring that the City has an adequate and uninterrupted supply of fuel. This includes five (5) above ground storage tanks and seven (7) underground storage tanks. These tanks provide fuel storage and dispensing at the City's Corporation Yard, Police Department and Fire Stations 1, 2, 3, 5, and 6. The City also has ten (10) emergency generators located at various sites with storage tanks. The Equipment Maintenance Section maintains, monitors, coordinates fuel deliveries, and oversees fueling operations in compliance with Federal, State and County regulations.
ANALYSIS:
The City is currently purchasing unleaded fuel utilizing pricing provided by Cooperative Agreement RCA-017-21010021 with the County of Orange (Attachment 2). Using the County's Cooperative Agreement has proven to be an effective means of purchasing fuel and ensures that the City receives the best possible prices.
Due to unprecedented rising fuel costs, the current $400,000 allotment provided under the original agreement has been expended. Based on projected demand and fuel costs, an...
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