Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Hunt and Sons, LLC for the Delivery of Unleaded and Diesel Fuels to City Fueling Stations for a Total Amount Not-to-Exceed $2,800,000.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section (Existing Facilities). (Public Works 60141580)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) currently uses a combination of diesel, gasoline, and electricity to power its vehicle fleet and equipment. The City fueling stations at the Maintenance Service Center and Fire Stations require regular delivery of fuel to ensure the City's fleet and backup generators can provide uninterrupted emergency and other City services. Staff recommends approval of a five-year agreement with Hunt and Sons, LLC (Hunt and Sons) for the delivery of unleaded and diesel fuels. The proposed agreement piggybacks on Hunt and Sons agreement with the State of California (State), a process allowed in the City's Administrative Instruction Number 5 (Purchasing Policy). The authorized amount in the proposed agreement is based on past consumption, inflation and a contingency for the volatility of the cost of fuel. Hunt and Sons is not guaranteed the authorized amount and will only bill for the actual volume of fuel delivered. As the City continues to transition to zero emission vehicles, fuel consumption will decline. The exact rate of that decline and the degree of fuel price volatility over the next five years is difficult to predict. Therefore, staff recommends a not-to-exceed of $2,800,000 over the five-year term, which is based on total City fuel costs in Fiscal Year 2022-23 when the price per gallon was notably high. Actual costs will be allocated based on consumption to the various operating budget...
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