REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of Purchase Orders to Bosco Oil Company DBA Valley Oil and Tom Lopes Distributing, Inc. DBA Western States Oil Company for the Purchase of Unleaded Fuel 87-Octane, Ultra-Low Sulfur Diesel, and Renewable Diesel Fuel Through January 31, 2029 and Ratify Purchase Orders Issued After Prior City Council Authorization Expired
Report
BACKGROUND
On March 9, 2021 (RTC 21-206), the City Council authorized the City Manager to execute purchase orders for unleaded fuel 87-octane, ultra-low sulfur diesel, and renewable diesel fuel with Bosco Oil Company DBA Valley Oil (Valley Oil) and Tom Lopes Distributing, Inc. DBA Western States Oil Company (Western States Oil Company) pursuant to the County of Santa Clara's (County) cooperative fuel agreements through January 11, 2026.
The Department of Public Works (DPW) Fleet Management Division purchases unleaded and renewable diesel fuel to support more than 600 City fleet assets for the Public Works, Fire, Police, Silicon Valley Power, Water & Sewer Utilities, Community Development, and Parks & Recreation Departments, etc. Reliable access to fuel is essential to ensure uninterrupted delivery of City services.
The 2021 City Council authorization allowed the City to purchase fuel under the County's cooperative agreements but did not establish a not-to-exceed compensation amount, providing operational flexibility to ensure sufficient fuel supply. Since 2021, the City has issued purchase orders under these cooperative agreements totaling $5,372,900, as summarized in Table 1 below.
Table 1: Fuel Purchases Under County Cooperative Agreements
Calendar Year
Amount
2021
$660,000
2022
$1,328,500
2023
$1,200,000
2024
$1,131,400
2025
$1,053,000
Total
$5,372,900
DISCUSSION
The County of Santa Clara has extended its cooperative agreements with Valley Oil and Western States Oil Company for another year through January 11, 2027. Staff is requesting City Council authorization to continue iss...
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