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8.1.D. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> October 24, 2016 <br /> SUBJECT <br /> Purchase Contract for Gasoline and Diesel Fuel <br /> RECOMMENDATION <br /> Approve by motion the contract with Valley Oil to provide fuel for three years, with two <br /> possible one-year extensions, not to exceed $700,000 per fiscal year <br /> BACKGROUND <br /> The Fleet and Facilities Division of the Public Works Services Department manages the <br /> City's fuel supply system for daily usage and maintains a fuel reserve for emergency <br /> needs. The fuel supply system consists of seven fuel filling stations throughout the City <br /> and provides service not only to City's operations, but to outside agencies. Currently, <br /> vehicles from the Town of Atherton, Town of Woodside, and Silicon Valley Clean Water <br /> are being fueled through the City's fuel supply system. <br /> In the process of procuring fuel for this fiscal year and the future, staff found that the <br /> Palo Alto Unified School District (PAUSD) recently conducted a bid for Red-Dyed Diesel <br /> and Unleaded gasoline. Valley Oil was found to be the lowest responsible bidder and <br /> was awarded a contract by the PAUSD Board of Trustees for a term of three years with <br /> two potential one-year extensions. The City of Redwood City staff has reviewed the bid <br /> documents and found that they meet our bid standards. It would be in the City's best <br /> interest to "piggyback" off of the PAUSD contract with Valley Oil for a term of three <br /> years with two possible one-year extensions. <br /> Section 2.80 of the Redwood City's Purchasing Ordinance and section 20118 of the <br /> Public Contract Code authorize the purchase of commodities through contracts <br /> awarded by other public agencies. This process allows the City to "piggyback" on <br /> pricing that has been achieved through another public agency's bidding process. <br /> Based on historical consumption data, staff projected that approximately 120,000 <br /> gallons of unleaded gasoline and 52,000 gallons of diesel fuel are needed for internal <br /> usage and outside agencies' purchases. <br /> ANALYSIS <br /> Staff indicates that the necessary findings under Section 2.80 may be made for the <br /> following reasons. <br />