TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Authorize the purchase and delivery of diesel fuel and gasoline for an amount not to exceed $1,100,000 from Southern Counties Oil Co. dba SC Fuels, a California Limited Partnership
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2. Summary
Purchase and delivery of diesel and gasoline fuel for the City fleet for a not to exceed amount of $1,100,000.
3. Recommended Action
recommendation
Approve the purchase agreement with Southern Counties Oil Co., a California Limited Partnership dba SC Fuels, in the amount not to exceed $1,100,000 for the purchase and delivery of diesel and gasoline fuel using a cooperative purchasing agreement; and authorize the Mayor and the City Clerk to execute on behalf of the City.
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4. Fiscal Impact
The expense for this agreement is $1,100,000 and will be funded through (100) General Fund:
100-5401-53201- Repair & Maintenance Supplies
5. Strategic Plan Goals
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
Goal 5: Improve Infrastructure, Mobility, and Technology
6. Discussion and Background
SC Fuels offers a cooperative purchasing contract to acquire diesel and unleaded fuel.
The City of Orange utilized a cooperative purchase agreement to secure vehicle fuel pricing for an agreement with SC Fuels at the July 12, 2022, City Council Meeting. SC Fuels will honor the pricing structure that was established through the 2022 agreement, which is approximately $4.80 per gallon. This pricing relies on the Oilfield Publication Information Service (OPIS), which fluctuates daily because fuel is a publicly traded commodity.
The agreement is for 12 months, starting July 1, 2026, and expiring June 30, 2027. The not-to-exceed amount of the contract will be $1,100,000 for Fiscal Year 2027, based on recent average fuel consumption.
SC Fuels supplies diesel and gasoline fuel to the City, and staff have determined they can continue meeting its needs. Staff will continue monitoring the cost to ensure the City gets the best value available.
7. ATTACHMENTS
• Agreement with SC Fuels FY 26-27