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Resolution No. 2011-084RESOLUTION NO. 2011-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING THE DIRECTOR OF COMMUNITY SERVICES & WATER TO MAKE NECESSARY PURCHASES ON BEHALF OF THE CITY OF VERNON IN CONNECTION WITH THE PURCHASE AND DELIVERY OF FUEL FOR THE CITY'S FLEET VEHICLES WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on November 24, 2008, the City Council of the City of Vernon adopted Resolution No. 9763 authorizing the Director of Community Services to approve any purchases and delivery of fuel for the City's fleet vehicles in a sum not to exceed Twenty -Five Thousand Dollars and No Cents ($25,000.00) without prior City Council approval; and WHEREAS, due to increasing fuel costs, City staff recommends that the authorized limit be increased at an amount not to exceed Thirty -Five Thousand Dollars and No Cents ($35,000.00). WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to authorize the Director of Community Services & Water to make purchases of fuel on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves and authorizes the Director of Community Services & Water to approve any purchases and delivery of fuel for the City's fleet vehicles in a sum not to exceed Thirty -Five Thousand Dollars and No Cents ($35,000.00) without prior City Council approval. SECTION 3: The City Council of the City of Vernon hereby authorizes the Director of Community Services & Water to take any action deemed necessary and to execute any and all documents as shall be required to carry out or to perform such other acts and deeds as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. SECTION 4: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 17th day of May, 2011. A2141-4, Name: Hilario Gonzales ^ Title: Mayor / _ e_r_� ATTFjST llard G.-,"Y�fna/gughij City Clerk 2 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-84, was duly passed, approved and adopted by the City.Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, May 17, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of May, 2011, at Vernon, California. 4.1lar'd akagiXc4i, City Clerk (SEAL) 3 CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: May 19, 2011 TO: S. Kevin Wilson, Director of Community Services & Water FROM: Willard Yamaguchi, City Clerk/Interim City Attorney RE: Resolution No. 2011-84 — A Resolution of the City Council of the City of Vernon Authorizing the Director of Community Services & Water to Make Necessary Purchases on Behalf of the City of Vernon in Connection With the Purchase and Delivery of Fuel for the City's Fleet Vehicles Transmitted herewith is a copy of Resolution No. 2011-84 referenced above, which was approved by City Council on May 17, 2011. Thank you. WY:dj Attachment c: Martha Valenzuela Purchasing Department Resolution No. 2011-84 R 1VED MAY 0 ?nil CITY C L RKI S Ofp10E STAFF REPORT PURCHASING DEPARTMENT RECEIVED MAY 0 4 2011 CITY ADMINISTRATION DATE: May 11, 2011 TO: Mayor and City Council FROM: Martha V.alenzuela, Director of Business Services/Personne RE: Fuel for the City's Fleet Vehicles Purpose The Purpose of this Staff report is to obtain permission from City Council to authorize an increase to the amount approved by City Council Resolution No. 9763 for the purchase of fuel for the City's fleet vehicles. Background The resolution authorizes the Director of Community Services to approve purchases and delivery of fuel for the City's fleet vehicles in a sum not to exceed $25,000.00 per purchase. The department makes numerous purchases throughout the year. This amount has allowed the department to expediently replace the fuel on an as needed basis. The City cost of fuel is dependent on the amount it purchases each time it refills its tanks. Therefore, it is most cost efficient to drain the tank to as much as possible while keeping a safe reserve and maximizing the amount of fuel it purchases each time. However, due to the high increased cost of fuel the last two fuel purchases were close to exceeding the department's authorized limit. Given that it is anticipated that fuel prices are going to continue to rise, it is recommended that the authorization limit be increased. Recommendation The Purchasing Section recommends the authorized I limit be increased at a not to exceed cost of $35,000.00. Fiscal Impact There is a possible fiscal impact to the City caused by the increasing fuel cost. The various departments of the City are charged for the fuel as allocated. Each department has appropriated funds to cover fuel expenses however, again due to the unforeseen soaring increased cost of fuel, departments may go over budget.