REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement to Valley Oil Company in the Amount of $875,000 for Unleaded and Diesel Fuel (F25-139)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a purchase agreement in the amount of $875,000 for unleaded and diesel fuel to Valley Oil Company of Mountain View. Approval is also requested to authorize the City Manager to increase the purchase agreement amount as needed for gasoline purchases through January 2026, subject to available budget and if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 (d) 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.
Section 2.08.220 (b) of the Sunnyvale Municipal Code authorizes the purchasing officer to direct the city's participation with one or more 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.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
In January 2022, the City's contract with Valley Oil Company to supply fuel citywide expired. To ensure continuity of operations, the City Manager, pursuant to the authority delegated by Council for the procurement of goods for which the cost to the City is $250,000 or less, awarded a new contract to Valley Oil Company. This new agreement was based on a cooperative reverse auction led by the County of Santa Clara in December 2020, in which the City participated as a membe...
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