Fuel Management

City of Santa Rosa Signs $5M Fuel Contract

September 14, 2011

SANTA ROSA, CA – The City of Santa Rosa, Calif. has signed a two-year contract, with three one-year renewal options, for gasoline and diesel fuel. The City signed the contract with Southern Counties Company, L.P., dba SC Fuels for $4,880,000 and with Redwood Coast Petroleum for $120,000. According to City documents, Santa Rosa purchases approximately $2.2 million annually worth of unleaded regular gasoline and diesel fuel for the City’s fleet.

The contract award of $5 million is based on the City's estimated bi-annual expenditures of $4.4 million, plus an additional 15 percent to accommodate any future cost increases. The contract also specifies that the contractor must agree that the City will be guaranteed a first delivery priority during a fuel shortage to allow the City to maintain emergency services.

The City’s background documents state that the current bulk purchasing process for fuel requires bidding almost weekly in order to comply with City Code requirements for competition and to issue purchase orders. The contract will streamline the process and save administrative time because weekly bidding will no longer be required.

The City stated that it also purchases gasoline and diesel fuels from local Arco service stations and via a cardlock system with Redwood Coast Petroleum for multi-point access and back up purposes. Fuel purchases made through those processes would not be affected by the new contract.

The fleet consists of 133 police department vehicles, 45 fire department vehicles, 60 transit vehicles (including coaches), and 768 miscellaneous vehicles (trucks, vans, sedans, scooters, sweepers, tractors, etc.) and motorized pieces of equipment (compressors, emergency generators, trenchers, chippers, etc).

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