| | | | | | | | Agenda Item - 4.f.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Authorize an increase of the purchase order with AAA Oil, Inc. dba California Fuels and Lubricants for fueling City vehicles. (Cost: $100,000) (Action Item) | Date: | 5/8/2018 |
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| | | | | | | | OBJECTIVE
To secure City Council authorization to increase the purchase order with AAA Oil Inc., dba California Fuels and Lubricants for an additional $100,000 to purchase fuel for city vehicles. |
| | | | | | | | BACKGROUND
The Public Works Department is responsible for providing all city departments with safe and reliable vehicles. The City was in year one (1) of a contract with ii Fuels when they informed the City that they could no longer fulfill the contract regarding fuel purchase and delivery. On April 11, 2018, the City Manager approved an emergency purchase order with AAA Oil Inc. dba California Fuels and Lubricants for $50,000 to provide fuel for the city’s fleet of vehicles. |
| | | | | | | | DISCUSSION
Due to rising costs of fuel and the time required to establish a long term contract with another vendor, the monetary threshold specified in the emergency purchase order has been exhausted. Staff is requesting City Council's approval for an additional $100,000 to continue purchasing fuel until a new, long term contract can be established through the bid process. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. The financial impact is $100,000 to the Fleet Management Operating Budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Authorize the Finance Director to increase the amount of the purchase order with AAA Oil Inc., dba California Fuels and Lubricants for the purchase of city vehicle fuel for an additional $100,000.
By: Steve Sudduth, Equipment Maintenance Supervisor
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