REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Purchase Order for Valley Oil Company to provide Unleaded Gasoline and Diesel Fuel (F19-121)
Report
REPORT IN BRIEF
Approval is requested to amend an existing purchase order with Valley Oil Company of Mountain View, the City's unleaded gasoline provider, to include supply of diesel fuel and increase the not-to-exceed by $200,000, from $180,000 to $380,000.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
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
Most of the City's fleet of vehicles are powered by diesel fuel and unleaded gasoline. The fuel is stored in underground tanks at various locations in the City and the fuel supply is monitored by the Finance Department's Central Stores. On January 13, 2015, Council awarded purchase orders to Valley Oil Company for unleaded gasoline and to Golden Gate Petroleum for diesel fuel (RTC No. 14-1106).
The award was based on the results of the County of Santa Clara's online reverse auction, conducted through BidSync, which was held on October 28, 2014. The low bidder for the City's diesel fuel requirement was Golden Gate Petroleum for lots of up to 1,500 gallons (per delivery) with a bid of $0.17 above Oil Price Information Service (OPIS) San Jose, and for lots of up to 6,000 gallons (per delivery) with a bid of $0.075 above OPIS San Jose. On an annual basis, the City expends approximately $200,000 per year on diesel fuel.
On December 7, 2018, Golden Gate Petroleum was acquired by Di...
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