REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
Subject:
title
Award and authorize execution of a 3-Year Contract with Merrimac Petroleum Inc. dba Merrimac Energy Group for Bulk Fuel Service - Gasoline and Diesel in an amount not to exceed $1,500,000 per year
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Statement of Issue:
In September of 2018, the City received bids for Bulk Fuel Services. City Council action is requested to award a three-year contract to the lowest responsive and responsible bidder, Merrimac Petroleum Inc. dba Merrimac Energy Group in an amount not to exceed $1,500,000 annually and $4,500,000 over the full three-year term.
Financial Impact:
Funds in the amount of $1,559,000 are budgeted annually in the Public Works Fleet Management account 10085701.63495 for fuel purchases.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute the "Service Agreement Between the City of Huntington Beach and Merrimac Petroleum Inc. dba Merrimac Energy Group for Bulk Fuel Services - Gasoline and Diesel" in an amount not to exceed amount of $1,500,000 per year for three years.
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Alternative Action(s):
Do not approve the contract award and direct staff to proceed differently.
Analysis:
The Public Works department manages the maintenance and restocking of the city's fuel infrastructure, which includes nine fuel islands and underground fuel storage tanks. City operations require approximately 330,000 gallons of unleaded gasoline and 80,000 gallons of diesel fuel annually. Public Works fleet maintenance staff works with a wholesale fuel broker to place timely fuel orders as needed and to ensure sufficient fuel inventory for Police, Fire, Public Works, and other city operations.
The city's former contracted fuel broker resigned their contract abruptly and without notice in early 2018. Since that time, staff has ...
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