REPORT TO COUNCIL
SUBJECT
Title
Modify an Existing Contract Purchase Agreement with Western States Oil for Diesel Fuel (F23-062) and Find that this Action is Exempt from CEQA Pursuant to CEQA Guideline 15378(b)(2).
Report
REPORT IN BRIEF
Approval is requested to modify an existing contract purchase agreement with Western States Oil of San Jose for diesel fuel, increasing the not-to-exceed amount by $150,000 from $240,000 to $390,000. Approval is also requested to authorize the City Manager to further modify the not-to-exceed amount for this contract and to renew for up to three (3) additional years, both subject to available budget and if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
In accordance with SMC Section 2.08.220(a), the purchasing officer may authorize the City's participation with one or more other governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids using methods similar to those set forth in Sunnyvale Municipal Code Section 2.08.060.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(2) (administrative and maintenance activities including purchases of supplies).
BACKGROUND AND DISCUSSION
The City's current contract with Western States Oil to provide diesel fuel citywide was awarded under the City Manager's authority as a result of the County of Santa Clara's cooperative multi-agency Reverse Auction conducted in December 2020. While the price of fuel is less than the retail rate (the City currently pays $3.95 per gallon for diesel), and is marked up at a set rate of t...
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