REPORT TO COUNCIL
SUBJECT
Title
Authorize Amending an Existing Purchase Agreement with Valley Oil for Unleaded and Diesel Fuel (F22-059)
Report
REPORT IN BRIEF
Approval is requested to amend an existing purchase agreement with Valley Oil of Mountain View, for unleaded and diesel fuel, increasing the not-to-exceed amount by $260,000 for a new not-to-exceed amount of $765,000. Approval is also requested to authorize the City Manager to amend the not-to-exceed amount, 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, 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
The City's current contract with Valley Oil Company to provide 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 of 2020, of which the City is a participating member. While the price per gallon of fuel is less than the retail rate (the City is currently paying 3.85 per gallon for gasoline and 3.90 for diesel), and is marked up above a set rate of the Oil Price Information Service (OPIS) San Jose, the overall increase in the base cost of fuel has significantly impacted the rate of expenditure. To address this, this contract was amended to increase the not-to-exceed amount to $505,000 (RTC No. 21-0608) on June 8th.
In previous years, when participating in the Reverse Auction process the City would have multiple vendors ...
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