REPORT TO COUNCIL
SUBJECT
Title
Modify Existing Purchase Agreements with Valley Oil Company in the Amount of $1,555,000 and Western States Oil Company in the Amount of $740,000 for Fuel (F26-201 & F26-203)
Report
REPORT IN BRIEF
Approval is requested to modify the existing purchase agreement (PA) with Bosco Oil, Inc., dba Valley Oil Company, increasing the PA amount from $875,000 to $1,555,000, and the existing PA with Tom Lopes Distributing, Inc., dba Western States Oil Company, increasing the PA amount from $400,000 to $740,000; and to extend the term of both PAs through January 11, 2027. The PA amounts require modification due to increased fuel consumption, higher per-gallon pricing, and expanded fleet operational needs. Approval is also requested to authorize the City Manager to modify the PA amounts if additional fuel is required, 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 SMC 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
The City has participated in the County of Santa Clara's (County) fuel contracts with Valley Oil Company and Western States Oil Company as a result of a Reverse...
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