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AGENDA ITEM REVIEW FORM |
7.B.
Regular City Council Meeting
- Meeting Date:
- 08/24/2022
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the authorization to approve McNeece Bros. Oil Company, Inc. for the purchase of gasoline and diesel fuels from Pacific Pride for Fiscal Year 2022-2023. (Jorge Perez, Assistant Director of Public Works)
SUMMARY:
Staff is seeking approval for the purchase of gasoline and diesel fuels from Pacific Pride gas station for Fiscal Year 2022-2023. Per our procurement code cumulative purchases over $45,000.00 need to go through a bidding process. Estimated purchases to Pacific Gas Pride are $720,000.00.
McNeece Bros. Oil Company, Inc., has been providing our gasoline purchases since 2008. We looked into other vendors and considered a bidding process; however, due to the fluctuating cost of gasoline, no vendor wants to commit to a set price for gasoline, hence going to bidding would not be feasible nor useful. Following good practices, we performed an analysis that showed that McNeece is the best alternative for gasoline for the City of San Luis, due to its accessibility and tax advantage savings. The City of San Luis does not pay tax on fuel with McNeece Bros. Oil Company, thus saves 18.4 cents for lightweight vehicles and 24.4 cents on heavyweight vehicles.
The Finance and Fleet Services Departments are asking the City Council to waive the formal purchasing procedures as permitted under Purchasing Code Section 3.05.010 (F) for gasoline purchases from McNeece. Waiving formal purchasing procedures is justified, since obtaining bids in the current environment of fluctuating gas prices is not feasible.
McNeece Bros. Oil Company, Inc., has been providing our gasoline purchases since 2008. We looked into other vendors and considered a bidding process; however, due to the fluctuating cost of gasoline, no vendor wants to commit to a set price for gasoline, hence going to bidding would not be feasible nor useful. Following good practices, we performed an analysis that showed that McNeece is the best alternative for gasoline for the City of San Luis, due to its accessibility and tax advantage savings. The City of San Luis does not pay tax on fuel with McNeece Bros. Oil Company, thus saves 18.4 cents for lightweight vehicles and 24.4 cents on heavyweight vehicles.
The Finance and Fleet Services Departments are asking the City Council to waive the formal purchasing procedures as permitted under Purchasing Code Section 3.05.010 (F) for gasoline purchases from McNeece. Waiving formal purchasing procedures is justified, since obtaining bids in the current environment of fluctuating gas prices is not feasible.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE PURCHASE OF GASOLINE AND DIESEL FUELS FROM MCNEECE BROS. OIL COMPANY FOR FISCAL YEAR 2022-2023 AND WAIVE FORMAL PURCHASE PROCEDURES FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $720,0000
- BUDGETED AMOUNT:
- YES
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Account #70005 - Gas & Oil ( See fiscal impact statement)
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The fiscal impact is estimated. The expense is allocated into all departments city wide in the gas and oil account.