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HomeMy WebLinkAboutR-11040 modifying purchasing procedures for the procurement of diesel fuel for City Transit OperationsRESOLUTION NO. 11040 (2019 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, MODIFYING PURCHASING PROCEDURES FOR THE PROCUREMENT OF DIESEL FUEL FOR CITY TRANSIT OPERATIONS WHEREAS, the City of San Luis Obispo Transit system deploys diesel fuel buses for daily transit service whin the City; and WHEREAS, the City purchases approximately $320,000 of diesel fuel per fiscal year through the Transit Fund; and WHEREAS, J.B. Dewar is the only bulk -fueling company located within City limits; and WHEREAS, J.B. Dewar has a card -lock price advantage program which gives the City tax-free diesel fuel; and WHEREAS, ancillary services are provided on-site to clean the buses overnight while being fueled; and WHEREAS, while issuing a public request for bid for the fuel could result in lower-cost bids, the fuel would have to be trucked in from outside City limits; resulting in increased greenhouse gas emissions directly caused by the purchase; and WHEREAS, delivery by truck tanker fueling increases the City's environmental liability risk and requires separate services for the daily cleaning of the buses. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Resolution No. 11040 (2019 Series) Page 2 SECTION 1: That the Public Works Department — Transit Division is authorized to purchase diesel fuel by sole -source with J.B. Dewar until such time as other companies provide the same level of service within City limits allowing for competitive bids or electrification of the City's transit service renders the contract obsolete. Upon motion of Council Member Christianson, seconded by Council Member Gomez, and on the following roll call vote: AYES: Council Members Christianson, Gomez and Stewart Vice Mayor Pease and Mayor Harmon NOES: None ABSENT: None The foregoing resolution was adopted this 3rd day of ATTEST: li Teresa Purrington City Clerk APPROVED AS TO FORM: J. 1stine Dietrlck ity Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 16-111- `111- day of , 2019. A F eresa Purrington City Clerk R 11040