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Council awards 3-year fuel deal
Written by Greg Ruland   
Wednesday, 15 December 2010 00:00

The estimated 29,200 gallons of fuel consumed by cars, trucks, buses and heavy machinery operated by the city will continue to be supplied by the same California energy provider that has been under contract with the city for the past nine years.

SC Fuels again won the contract to fuel Cottonwood’s transportation fleet by unanimous vote of council Dec. 7. The contract, renewed for three-year periods, has gone to SC Fuels in each of the last three cycles, according to Administrative Services General Manager Rudy Rodriguez.

“They have always been responsive and capable of resolving any issues promptly,” Rodriguez wrote in his recommendation.
Five requests for proposal were sent to alternative fuel providers. Suzy Q and Carter Oil Company did not respond. Requests mailed to Phoenix Fuels and Trejo Oil were returned as undeliverable.

“It’s not my responsibility to chase bidders down,” Rodriguez said. “They’re supposed to keep track of current addresses.”

Several fuel providers contact him each year and ask to be included in the list of potential contractors, Rodriguez said.

“It is unfortunate that no other provider submitted a bid for the off-site fueling services; however, it is not uncommon,” Rodriguez wrote in his recommendation. “SC Fuels has provided excellent services in the past and by keeping them we will avoid a transition to another company.”

The contract builds in protection against any fuel provider under contract with the city that might try to artificially inflate fuel prices.

The city uses the Oil Price Information System, Rodriguez stated. OPIS monitors and reports on fuel prices across the United States, tracking thousands of wholesalers and “maintains the world’s most comprehensive database of U.S. wholesale petroleum prices,” according to its website.

SF Fuels will be paid the OPIS price plus $0.12 for 87 octane unleaded gas per gallon and the OPIS price plus $0.11 for 87 ultra-low sulfur diesel.

 

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