Officials this week signed a one-year contract extension with San Marcos-based Sac-n-Pac, Inc. to provide gasoline and diesel for city vehicles and equipment.
Keeping police cars and excavators and utility trucks going will cost an estimated $479,614, Finance Director Rosie Vela said. The municipal government operates 263 gasoline- and 113 diesel-powered fuel systems.
Sac-n-Pac’s current three-year contract, which expires in February, allows for three one-year extensions.
Under terms of the contract extension, Sac-n-Pac makes about 4.9 cents per gallon sold to the city after taxes, fees and freight. A per-gallon rate is calculated each week based on the current Oil Price Information Service’s wholesale rate plus .2731 cents, a 5 percent increase over the previous year not counting market increases, according to the agreement.
Last fiscal year, city departments consumed 152,900 gallons of gasoline and 48,540 gallon of diesel. The total bill was $456,744.
City’s fuel contract extension with Sac-n-Pac council cover memo [pdf]