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HomeMy WebLinkAboutItem 8.2 Purchase of Fuel CITY CLERK File # n~[Q][Q]-~1,?l AGENDA 8T A TEMENT CITY COUNCIL MEETING DATE: May 3, 2005 SUBJECT: Agreement with Alameda County for Purchase of Fuel Report Prepared by: Melissa Morton, Public Works Director ATTACHMENTS: Resolution, together with Exhibit "A," Agreement RECOMMENDATIO~ Adopt Resolution approving the Agreement with Alameda County for the purchase of fueL FINANCIAL STATEMENT: The first year net cost to the City is $22,700. The annual savings to the City thereafter is estimated at $10,300, plus avoided costs for future Capital Improvements required by regulatory agencles_ DESCRIPTION: Over the past several years, a number of new requirements related to air quality and hazardous materials have caused the City to make modifications to the gasoline tank on the Civic Center site_ Relatively minor modifications have been required periodically since the tank was installed, but major changes occurring in just the last few years resulted in expenditures of $35,282 in FY 2001-02 and $38,831 in FY 2002-03 in order to satisfY the requirements of the Bay Area Air Quality Management District (BAAQMD) and Alameda County Environmental Health Department. Staff was advised recently that yet another BAAQMD upgrade was required to be completed by April 1, 2005, at an estimated cost of $12,000. Coupled with the cost of annual permits and ongoing fuel testing, monitoring, and maintenance costs, which amount to at least $2,800 per year, It is not cost effective to continue to provide an on-site fueling facility. Alameda County has indicated a willingness to provide fuel to the City at its cost, plus an overhead charge of five cents per gallon. Through this agreement, fuel could be obtained at the County's Public Works facility just off Gleason Drive, or at any other County fueling facility_ The Gleason Drive facility is open 24 hours a day, 7 days a week. While the cost of fuel fluctuates, it appears the County is able to purchase fuel at about 20 cents per gallon less than the City has been paying, for a net savings (after the 5·cent overhead fee) of 15 cents per gal1on. The estimated annual usage for the current City Stafflvehic1e level is approximately 50,000 gallons, which results in an estimated savings of $7,500 in annual fuel cost. The fuel savings, coupled with the $2,800 ~~_____________________________~.___~__M________...____________ COPIES TO: Tom Fung, Alameda County \c1b'Z-- ITEM NO. 8·:¿ expended each year for testing, maintenance, and monitoring, would amount to a savings of $10,300 per year. The agreement would inc1ude Police and Public Works Inspector vehicles. as well as the two pool cars and the Senior Center van_ Fire vehic1es are already fueled through the Alameda County system. This agreement provides for the purchase of both gasoline and diesel fueL Other than fire apparatus, the City does not have any diesel-powered vehic1es at this time. In the event that the County's facility is not operational for some reason, the City has an existing account with a local commercial gas station, and it is also possible to use the County fuel cards to purchase gasoline at specific commercial stations. These purchases would be made at the current price at the commercial station, so this option would not be used unless the County facility is not available. This agreement is proposed to be reviewed periodical1y for continued feasibility and cost-effectiveness and amended if necessary. Once the City's gasoline tank is no longer being used, it should be removed in order to preclude the potential liability of underground contamination and also to eliminate payment of ongoing permit and monitoring fees. A Capital Improvement Project is proposed for the 2005-2006 Fiscal Year to remove the tank trom the Police parking lot. The cost of removal has been estimated at $35,000 to $45,000. Additional information on the tank removal project will be provided to the City Council as part of the Capital Improvement Program update. The Civic Center diesel tank is proposed to be retained as a fuel supply for the emergency generator only_ Staff recommends that the City Council adopt the resolution approving the Agreement with Alameda County for the purchase offuel. Page 2 "b "¿. løa(Q RESOLUTION NO. -05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********************** APPROVING AGREEMENT WITH ALAMEDA COUNTY FOR PURCHASE OF FUEL WHEREAS, due to ongoing environmental upgrade requirements and the cost of permits, monitoring, and fuel purchase costs, it is in the City's best interest not to supply gasoline at the Civic Center's on-site fueling station; and WHEREAS, Alameda County is willing to execute an agreement to allow the City to obtain fuel at Alameda County's fueling stations as a more cost-effective option; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of DubIin approves the agreement with Alameda County for the purchase of fuel, which agreement is attached hereto as Exhibit "A." BE IT FURTHER RESOLVED that the Mayor is authorized to cxecute the agreement. PASSED, APPROVED AND ADOPTED this 3rd day of May, 2005. AYES: NOES: ABSENT: ABSTAINING: Mayor ATTEST: City Clerk g; 1agenmlsc\reso fiud PUtc:hllSC 5-3-05 g.~ ~~"Ï EXHIBIT "A" OF RESOLUTION -05 ~"b0 AGREEMENT TO PURCHASE MOTOR FUEL This AGREEMENT, made and entered into this day of . by and betwecn the COUNTY OF ALAMEDA, a political subdivision of the State of California ("County") and the City of Dublin ("City"). WHEREAS, the County owns and operates facilities or fuel stations located within the County of Alameda, California which dispense motor fuel; and, WHEREAS, the City, desires to purchase motor fuel from the County for City use in CITY motor vehicles; NOW, THEREFORE, it is mutually agreed as follows: 1. Fuel Cards: The County, through its General Services Agency ("GSA"), will provide to the City two types of use cards (an Operator Card and an Equipment Card) that authorize City employees to purchase motor fuel from one or more of specifically designated County self-service fuel stations or other stations. One card is an Operator Card which must be in the possession ofthc authorized City employee in order to purchase motor fuel under this Agreement. The second card is an Equipment Card which shall be used with the particular City vehicle for which fuel is needed. In order to purchase motor fuel under this Agreement at either a County or other station, both cards must be used simultaneously. The City shall submit all requests for cards under this Agreement in writing and allow a reasonable amount of time for the County to deliver the requested card(s). Requests by the City to terminate or deactivate a card or cards may be made verbally but shall be followed as soon as practical by written confirmation of that request. 2. Fuel Stations: The designated County seJ ~service fuel stations are identified on the attached Exhibit A. Th.e County agrees to use its best efforts to make motor fucl available to the City at those stations under the terms of this Agreement. GSA fuel stations will operate during regular business hours from 8:00 a.m. to 5 :00 p.m., and extended hours as identified on Exhibit A. These designatcd time/hours may be subject to change depending on the County's reasonable operating needs and/or budget constraints. 3. Responsibility for Card Use: The number of cards (Operator Cards and an Equipment Cards) provided by the County to the City will depend on the City's needs and requests to the County. The City will be solely responsible for the distribution, management and use of those cards once they have been provided by the County to the City. The City agrees that its employees will use the cards only for City-related purposes. Notwithstanding any misuse or alleged misuse ofthc cards provided to the City under this Agreement, the City agrees to pay the County as provided herein for all use of those cards. mIBIT A. -t 0 -t: It e 7?e.so /u:t/o n. 3t~ 4. Term of Agreement. This Agreement shall be renewed automatically on a year-to- year basis on July 1, upon the receipt of a written Purchase Order from the City setting forth the anticipated fuel to be purchased during the fiscal year. This Agreement can be tenninated upon thirty (30) days notice by either partY with or without cause without penalty except that City shall be responsible for all card usage as provided herein. 5. Charges: a. The City agrees to pay to the County an administrative fee of per card to generate and provide the Operator and Equipment Cards under this Agreement. The fee for Fiscal Year 2004-05, which is from July 1, 2004 . through June 30, 2005 is $4.30. The fee in Fiscal Year 2005-06 is estimated to be $4,44. 'lltis fee is subject to change as necessary to adjust for overhead cost and other reasonable costs incurred by the County to provide the cards. b. The City further agrees to pay the County, for every gallon of motor fuel purchased with the Card or Cards provided to the City under this Agreement, the County's net price per gallon of fuel whether purchased at a designated County facility or other facili ty. c. The City further agrees to pay to the County an additional administrative fee of $0.05 per gallon for every gallon of motor fuel purchased with the Card or Cards provided to the City under this Agreement. This fee applies to every gal10n purchased whether purchased at a designated County facility or other facility. This fee is subject to change as necessary to adjust for overhead cost and other reasonable costs incurred by the County to provide the cards. d. The County through GSA or other designated agency of the County will invoice the City on a monthly basis against the Purchase Order. The City shall pay all outstanding amounts on said invoices within 30 days of receipt of invoice. Checks shall be made payable Alameda County Treasurers and shall be submitted to the General Services Agency, ATTN: GSA-Accounting, 1401 Lakeside Drive, 10111 Floor, Oakland, CA 94612. 6. Indemnity: a. CITY shall assume liability and shall pay cost of defense and hold the COUNTY hannless from loss, costs, or expenses to the extent caused by the negligent or wrongful act or omission of CITY officers, agents, and employees occurring in the performance of this agreement. In addition, when liability arises pursuant to Section 830, et. seq., of the Government Code, by reason of a dangerous condition of public property of the CITY, CITY shall assume liability and pay cost of defense and hold the COUNTY harmless from loss, costs, or expenses caused by the negligent or wrongful act or omission of CITY officers, agents, and employees arising in the performance of this agreement. 4t:>lP b. COUNTY will assume liability and pay cost of defense and hold the CITY harmless from loss, costs, Of expenses to the extent caused by negligent or wrongful act or omission by COUNTY officers, agents, and employees occurring in the performance of this agreement. In addition, when liability arises pursuant to Section 830, et. seq., of the Government Code, by reason of a dangerous condition of the public property ofthe COUNTY, the COUNTY shall assume liability and pay cost of defense and hold the CITY harmless from loss, costs, or expenses caused by the negligent or wrongful act or omission of COUNTY officers, agents, and employees arising in the performance of this agreement. 7. Release: City shall assume all associated risks of damage to its property or death or injury to its personnel associated with its purchase of motor fuel under this Agreement. The City hereby releases the County from all claims, losses, damages, liabilities or expenses, including reasonable attorney fees incurred in the defense thereof, for the death or injury to its personnel or damage to its property which arise out of or are connected with the City's purchase of motor fuel under this Agreement. 8. Motor Fuel Dispensed: The City is solely responsible for determining its fuel needs and the compatibility of the fuel provided under this Agreement to meet those needs. For examplc, at the designated fuel stations, GSA currently dispenses a B20 blend of biodiesel fuel in its diesel tanks. That fuel may not be compatible with all vehicles and equipment and the City shall be solely responsible for making that determination. 9. Fuel Availability: The County will use its best efforts to make motor fuel available at the designated stations to the City under this Agreement. However, despite those efforts, the parties recognizc that sufficient quantities of motor fuel may not by available to meet the City's needs. In recognition of that possibility, the City agrees that the County shall not be liable for any delay or other damages, losses or claims whethcr incurred or allegedly incurrcd by the City or by its employees, agents, contractors or subcontractors which arise out of or are connected with the unavailability of motor fuel at the designated or other stations. 10. County Policy: Proper conduct is expected of City's personnel when on Of using County premises or facilities. This includes, but not limited to, adhcring to the County's non-smoking Ordinance, a drug-free workplace policy, not using alcoholic beverages, and treating employees and members of the public courteously. 6~tp 11. Modifications: Any modifications to this Agreement must be in writing signed by both an authorized representative of the County and by an authorized representative of the City. County: County of Alameda For the City of Dublin By: By: Aki K. Nakao, Director Title: General Services Agency Its: Date: Date: lß6b~ EXHIBIT A Dublin ~ Santa Rita Fuel Station 6175 Madigan Road, Dublin (comer of Madigan Road and Gleason Drive) Type of Work: Unleaded & diesel fuel Hours of Operation: 2417 hours, including weekends and holidays Hayward ~ Turner Court Fuel Station 951 Turner Court, Hayward (comer of Turner Court and Kay Avenue) Type of Work: Unleaded & diesel fuel Hours of Operations: Monday ~ Friday, 5:30 a.ill. ~ 5:00 p.m., close on county holidays Hayward - West Winton Fuel Station 224 West Winton Avenue, Hayward (Between Amador Street and Santa Clara Street) Type of Fuel: UIÙeaded fuel Hours of operation: 2417 hours, including weekends and holidays Oakland ~ A1copark Fuel Station 13th Street at Jackson Street, Oakland Type of Fuel: Unleaded fuel Hours of Operation: 2417 hours, including weekends and holidays San Leandro - OES Fuel Station 2000 ~ 1 50th A venue, San Leandro (between Foothill Blvd. and Van Avenue) Type of Fuel: Unleaded fuel Hours of Operation: 2417 hours, including weekends and holidays EXHIBIT ..A -1:0 +/te A~evr