Legislative Public Meetings

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File #: 21-0608   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 6/8/2021
Title: Modify a Purchase Agreement with Valley Oil for Unleaded and Diesel Fuel (F21-152)
REPORT TO COUNCIL

SUBJECT
Title
Modify a Purchase Agreement with Valley Oil for Unleaded and Diesel Fuel (F21-152)

Report
REPORT IN BRIEF
Approval is requested to amend an existing purchase agreement with Valley Oil of Mountain View, CA, for unleaded and diesel fuel, increasing the not-to-exceed amount by $260,000 for a new not-to-exceed total amount of $505,000.

With the implementation of the City's new financial system, the terminology of "Purchase Order" has changed to "Purchase Agreement." This report, and future reports, will use this new terminology.

EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of good and/or services greater than $250,000 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 and unleaded gasoline. The fuel is stored in underground and aboveground tanks at various locations in the City and the inventory and refueling coordination is managed by Central Stores. Currently, the City uses approximately 2,000 gallons of fuel each week and expends almost $600,000 annually to fuel fleet vehicles for all departments.

The City's current contract for fuel with Valley Oil Company 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 of 2020, of which the City was a participating member. Staff decided to award the contract under the total contract amount expected for the complete fiscal year for several reasons. There was a delay in receiving the contract a...

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