AgdaPkt 2016-10-24 Closed and Joint SA PFA HHCC

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8.1.D. - Page 2 First, Public Works Service staff has reviewed PAUSD's competitive bidding process, completed in June 2016, and confirmed that the competitive bidding requirements are equivalent to that prescribed by the City Charter or the Purchasing Ordinance of the City. Second, such contract conforms to City specifications because both Redwood City and PAUSD have policies that all contracts or purchases in excess of a certain dollar amount shall require sealed bids and be awarded to the lowest responsible bidder after due notice is given by publication, the contract is in excess of the dollar amount specified by both agencies, PAUSD required sealed bids, and the contract was awarded to the lowest responsible bidder after due notice was given by publication. Third, the estimated price of this purchase is equal to or lower than that estimated for such purchase if made directly by the City pursuant to the competitive bidding requirements of the Purchasing Ordinance. The PAUSD bid process established that base fuel prices would be based on the "Oil Pricing Information Service" (OPIS) for the San Jose area wholesale pricing. OPIS is the world's most recognized comprehensive database of the U.S. wholesale petroleum prices, as well as other key markets. All bidders were to bid a guaranteed profit margin that shall not change during the contract period of three years, with two possible one- year extensions. The bid results are below: Contractor Unleaded Diesel Profit Margin/Gallon Profit Margin/Gallon Valley Oil Co. $0.035 $0.065 SC Fuel $0.46654 $0.16562 Western States Oil $0.055 $0.055 ALTERNATIVES Council may elect not to approve the contract with Valley Oil, resulting in the City conducting a separate competitive bid process that would likely not result in any cost savings since the PAUSD's bid process included the same criteria and requirements that a Redwood City competitive bid process requires. FISCAL IMPACT Fuel costs are included in the Fleet division's annual authorized budget. The contract is not to exceed $700,000. Fuel costs are charged to the operating budget of the user departments. ENVIRONMENTAL REVIEW This activity does not constitute a "Project" under the California Environmental Quality Act (CEQA) Section 15378 as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment.