COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young - Transportation and Maintenance Superintendent
SUBJECT:Title
Action: Cooperative Purchase Agreement and Purchase of Fuel from Rebel Oil Company (Bill Young)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
To consider approval of Cooperative Purchase Agreement with Rebel Oil Company (500517) utilizing Mohave County Contract 23B23 for the procurement of gasoline and low sulfur diesel fuel in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
Lake Havasu City requires fuel for its fleet of vehicles and other equipment across various departments including Public Works, Parks and Recreation, and Emergency Services. Fuel procurement is a critical element of the City’s operational needs and must be done in a cost-efficient manner while ensuring the availability and quality of the fuel.
The City identified cooperative purchasing programs available through local, state, and national vendors that allow for fuel procurement under competitive pricing structures. By leveraging these cooperative agreements, the City will benefit from pre-negotiated contracts that offer favorable pricing and terms, as well as reliable delivery schedules.
Through cooperative purchasing programs and the bidding process, the City proposes to enter into an agreement with Rebel Oil Company for the procurement of bulk fuel to supply the newly built City Fueling Facility. The maximum term of the agreement, inclusive of all annual renewals, shall extend through August 6, 2029. The vendor selected was evaluated based on criteria such as pricing, reliability, delivery schedules, and fuel quality.
Historically the City has used approximately 144,200 gallons of unleaded gasoline and approximately 60,900 gallons of diesel fuel annually. This usage is expected to increase due to the additions to fleet and three (3) new ambulances to the City’s Emergency Response Fleet.
COMMUNITY IMPACT:
This agreement will ensure that the City has reliable access to gasoline and diesel fuel as needed, while optimizing costs through competitive purchasing. This will support the continued efficiency and operation of the City’s essential services.
FISCAL IMPACT:
Funds for fuel purchases are allocated and available in each Department’s budget and will be used as needed throughout the remainder of this fiscal year and into Fiscal Year 2025-26.
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended action
I move to approve and authorize the City Manager to execute the Cooperative Purchase Agreement with Rebel Oil Company, and approve the purchase of fuel in excess of the expenditure threshold annually for the term of the Agreement and its subsequent renewals.