HomeMy WebLinkAboutStaff Report 107-11TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: JANUARY 10,2011 CMR:I07:11
SUBJECT: Use of Ci~ Manager's Emergency Contracting Authority to Extend the
Contract Period for Contract C08124799 with Western States Oil Company
This is an informational report and no Council action is required.
BACKGROUND
nus report provides information on the use of the City Manager's emergency contracting authority
to extend the contract period for contract C08124799 with Western States Oil Company for an
.-----additional 20 days to ensure uninterrupted fuel deJivery. The original contractwas set :kLexpim-ou.on.L--___ _
December 16, 2010 and with this contract extension, the new expiration date will be March 31, 2011.
This eXtension will allow adequate time for staff to solicit bids for a new contract, which will be in
place before the new expiration date.
City operations use approximately 350,000 of gasoline and diesel fuel annually, so it is imperative
that a contract with a fuel provider be in place at all times so that staff/can order fuel whenever it is
needed. This contract covers the provision and delivery of fuel to numerous locations throughout the
City. Bidders bid the cost of delivery only; the price of fuel purchased is indexed to the Oil Price
Information Service (OPIS) daily "Rack Average" pricing for the San Jose market. Western States
Oil Company has agreed to the extension of time with no increase to their delivery costs.
DISCUSSION
Typically, bids would be solicited for this contract in September so that a new contract would be in
place prior to the expiration of the current contract. However, due to staffing shortages and
additional workload in Equipment Management, the RFQ submittals were not delivered to
purchasing in time to facilitate a seamless transition. The RFQ submittals are now complete, and
bids will be solicited in early January.
This action will not increase the cost of this contract. Use of the emergency authority of the City
Manager was necessary only to extend the contract period, in order to insure the continued delivery
of critical City services.
RESOURCE IMPACT
Funds for this contract are budgeted in the FY 2011 Public Works Equipment Management
Operating Budget.
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