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HomeMy WebLinkAboutC40010 FY 20-21 Gas and Diesel FuelCONTRACT NO. C40010 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE PREPARED BY June 11, 2020 David Reyes, Street Maintenance Supervisor � G .X- REQUEST: Approve the purchase of gas and diesel fuel from SC Commercial, LLC during Fiscal Year 2020/21 in an amount not to exceed $200,000 for the City's fleet and equipment and Desert Willow's maintenance vehicles and equipment. Recommendation By Minute Motion, approve the purchase of gas and diesel fuel from SC Commercial, LLC during Fiscal Year (FY) 2020/21 for City fleet and equipment in an amount not to exceed $100,000; and Desert Willow maintenance vehicles and equipment in an amount not to exceed $100,000. Funds are available in General Fund Account No. 1104331-4217000, Auto Fleet—Supply Automotive Gas, and Account No. 5204195-4803100, Desert Willow Maintenance Facility. Strateqic Plan This is an ongoing maintenance function and as such, does not directly contribute to the objectives of the Strategic Plan. Backaround Analvsis Many of the City fleet vehicles and power equipment depend on gasoline and diesel fuels to perform daily operations for the City and Desert Willow. Since fuel prices fluctuate on a daily basis, it is not possible to lock in a fuel price for an entire year. However, there are components of the fuel price thaf can be locked in. Public Works requested a bid price from vendors that covers delivery, profit, and other fees for vendors to supply fuel to City-owned facilities. The cost of the fuel itself is determined by Oil Price Information Service (OPIS), a company that accumulates price data and averages the per-gallon prices from the refineries that distribute fuel from the fuel terminal in Colton. OPIS provides updated data at least once per day, depending upon market conditions. When purchasing fuel, the bid amount will be added to the OPIS average rack rate to determine the total per-gallon cost paid. A call for bids was advertised on May 18, 2020, and focal vendors were encouraged to submit bids. On June 1, 2020, staff received the following results: Contractor Location Bid Score SC Commercial, LLC Coachella, CA 10.4985 June 11, 2020 - Staff Report C40010 - Gas and Diesel Fuel Purchase for FY 2020/21 Page2of2 The City uses three different fuels: 87 unleaded, clear diesel, and red-dyed diesel. To ensure the vendors were providing the best price for all three fuel types, the City required the vendors to provide a per-gallon price for each fuel, based upon the actual rack rate for a specific date. Those prices were then weighted based upon the City's usage. The City uses three times more unleaded fuel than diesel. Therefore, the bid score is the sum of the per-gallon cost of clear diesel, red-dyed diesel, and three times the cost of 87 unleaded gasoline. As an example, the low-bid is detailed below: OPIS Rack Rate for 5/14/20 Plus: Tax, Delivery, and Profit Per Gallon Cost Weighting Weighted Price DEPT. REVIEW The sum of the weighted prices equals the bid score. Clear Diesel 1.2685 .8151 2.0837 X 1 2.0836 Dved Diesel 1.2743 .2121 1.4865 X 1 1.4864 Although only one bid was received, the bid was compared to the low bid received last year from Beck Oil, Inc., and the new per-gallon rates will result in lower cost to the City. Therefore, staff recommends that the City Council approve the purchase of fuel from SC Commercial, LLC for FY 2020/21. Fiscal Analvsis This expense was included in the FY 2020/21 proposed budget; therefore, it has no fiscal impact beyond the cost of the fuel. LEGAL REVIEW �o�r�et �anynea.fee Robert W. Hargreaves City Attorney Unleaded 1.4422 .8673 2.3095 X 3 6.9285 %Hc C.anua. Tom Garcia, P.E. Director of Public Works City Manager, Lauri Aylaian: At FINANCIAL REVIEW �ct.,�,.r.�'?�1. �'�%ou Janet M. Moore Director of Finance VENDOR: SC Commercial, LLC DBA SC Fuels P.O. Box 14237 Orange, CA 92867 ASSISTANT CITY MANAGER .Andy _Firestine Andy Firestine Assistant City Manager ATTACHMENTS: Short Form Services Contract with Vendor's Quote CITY OF PALM DESERT SHORT-FORM SERVICES AGREEMENT Contract No. ______________ 1. Parties and Date. This Agreement is made and entered into this 11th day of June, 2020, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, California (“City”) and SC COMMERCIAL, a Delaware Limited Liability Company, with its principal place of business at 1800 W. Katella Avenue, Suite 400, Orange, CA 92867 ("Vendor"). City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Terms and Conditions. The Parties shall comply with the Terms and Conditions attached hereto as Exhibit “A” and incorporated herein by this reference. 3. Scope of Services. The Vendor shall be solely responsible for providing all materials, labor, tools, equipment, water, light, power, transportation, and superintendence of every nature and all other services and all facilities necessary to execute, complete, and deliver the services as particularly described in the Scope of Services (“Services”) attached hereto as Exhibit “B” and incorporated herein by this reference. The Services shall be completed timely and as requested by the City. 4. Term. The term of this Agreement shall be from July 1, 2020 to June 30 2021, unless earlier terminated as provided herein. 5. Compensation. Vendor shall receive compensation for Services rendered under this Agreement at the rates set forth in Exhibit "B" attached hereto and incorporated herein by this reference. Vendor’s invoices shall include a detailed description of the Services perf ormed. The City shall review and pay all non-disputed and approved charges on such invoices in a timely manner. Vendor shall submit its final invoice to the City within thirty (30) days from the last date of Services performed and failure to do so shall result in a waiver of payment from the City. 6. Insurance. In accordance with Section 3 of the Terms and Conditions, Vendor shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies in a form satisfactory to the City. Commercial General Liability Insurance: $1,000,000 per occurrence/$2,000,000 aggregate. $2,000,000 per occurrence/$4,000,000 aggregate. Automobile Liability: $1,000,000 combined single limit for bodily injury and property damage. Workers’ Compensation: Statutory Limits / Employer’s Liability $1,000,000 per accident or disease and a waiver of subrogation in favor of the City, its officers, agents, employees and volunteers. Pollution Liability: Pollution liability insurance with a limit of not less than $1,000,000 per claim and in the aggregate. C40010 Contract No. ______________ 2 72500.00001\32374915.1 (Revised 10-29-19) IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT SC COMMERCIAL, LLC A DELAWARE LIMITED LIABILITY COMPANY By: __________________________ By: __________________________ GINA NESTANDE, Its: __________________________ MAYOR Printed Name: _____________________ Attest: __________________________ Grace L. Rocha Acting City Clerk Approved as to Form: __________________________ Best Best & Krieger LLP City Attorney C40010 Contract No. ______________ Ex. A-1 72500.00001\32374915.1 (Revised 10-29-19) EXHIBIT “A” TERMS AND CONDITIONS FOR SERVICES 1. Compliance with Law. Vendor shall comply with all applicable laws and regulations of the federal, state and local government. Vendor certifies th at it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. By its signature hereunder, Vendor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liabi lity for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. Vendor represents that it is an equal opportunity employer and it shall not disc riminate against any subcontractor, employee or applicant for employment in violation of state or federal law. Vendor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the p erformance of other requirements on certain "public works" and "maintenance" projects. If the work is being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenan ce or $25,000 or more for construction, alteration, demolition, installation, or repair, Vendor agrees to fully comply with such Prevailing Wage Laws , including, along with subcontractors, being registered with the Department of Industrial Relations (Labor Code §§ 1725.1; 1771.1). It shall be mandatory upon the Vendor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code §§ 1771; 1774; 1775), employment of apprentices (Labor Code § 1777.5), certified payroll records (Labor Code §§ 1771.4; 1776), hours of labor (Labor Code §§ 1813; 1815) and debarment of contractors and subcontractors (Labor Code § 1777.1). This Agreement may be subject to compliance moni toring and enforcement. 2. Standard of Care. The Vendor shall perform the Services in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 3. Insurance. If required by Section 6 of this Agreement, the Vendor shall take out and maintain during this Agreement: A. Commercial Gener al Liability Insurance for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001). The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted; B. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned, rented, and hired vehicles, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 10/13) covering automobile liabil ity, Code 1 (any auto); C. Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance; and if applicable, as determined by the City’s Risk Manager, D. Professional Liability (Errors and Omissions) that covers the Services to be performed in connection with this Agreement. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Vendor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or ap pointed officers, agents, officials, employees and volunteers, or shall specifically allow Vendor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against the City of Palm Desert , its elected or appointed officers, agents, officials, employees and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. Workers compensation coverage shall have an endorsement in favor of the C ity of Palm Desert, its officers, agents, employees and volunteers. . Insurance carriers shall be licensed and authorized to do business in California. Such insurance carrier shall have not le ss than an "A-:VII" rating according to the latest Best Key Rating unless otherwise approved by City’s Risk Manager. Vendor shall add City, its officers, officials, employees, agents, and volunteers as additional insureds on Vendor’s Commercial General Liability, Automobile Liability, and if applicable, Pollution Liability and Cyber Liability policies. Coverage provided by Vendor shall be primary and any insurance or self -insurance procured or maintained by City shall not be required to contribute with it. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance (i.e. pollution, cyber, and fidelity coverages) required by giving the Vendor advance written notice of such change. If such change results in substantial additional cost to the Vendor, the City and Vendor may renegotiate Vendor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 4. Indemnification. To the fullest extent permitted by law, Vendor shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, “Claims”), in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Vendor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Vendor’s Services, the project, or this Agreement, including without limitat ion the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Vendor’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restric ted to insurance proceeds, if any, received by Consultant or the City, its officials, officers, employees, agents, or volunteers. If Vendor’s obligation to de fend, indemnify, and/or hold harmless arises out of Vendor’s performance as a “design professional” (as that term is defined under Civil Code § 2782.8), then, and only to the extent required by Civil Code § 2782.8, which is fully incorporated herein, Vendor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Vendor, and, upon Vendor obtaining a final adjudication by a court of competent jurisdiction, Vendor’s liability for such claim, including the cost to defend, shall not exceed the Vendor’s proportionate pe rcentage of fault. 5. Laws; Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to inter pret or enforce any term of this Agreement, the action shall be brought in a state or federal court s ituated in the County of Riverside, State of California. 6. Termination. The City may terminate the whole or any part of this Agreement for any or no reason by giving three (3) calendar days written notice to Vendor. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for the work. The City shall pay Vendor the reasonable value as determined by City of a ny portion of the Services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof whic h are specified herein. Vendor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of the Services. Vendor may terminate its obligation to provide further work under this Agreement upon thirty (30) calendar days written notic e to City only in the event of City’s failure to perform in accordance with the terms of this Agreement through no fault of Vendor. 7. Changes. By written notice, City may from time to time, make changes to the Services furnished to City by Vendor. If such change cause s an increase or decrease in the Agreement Price or in the time required for performance, Vendor or City shall promptly notify the other party thereof and assert its claim for adjustment within fifteen (15) days after the change is ordered, and an equitable adjustment shall be ma de. However, nothing in this clause shall excuse the Vendor from proceeding immediately with the Agreement as changed. 8. Miscellaneous Terms. Vendor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City. This Agreement may not be modified or altered except in writing signed by the Parties. There are no intended third party beneficiaries of any right or obligation of the Parties. This is an integrated Agreement representing the entire understandin g of the Parties as to those C40010 Contract No. ______________ Ex. A-2 72500.00001\32374915.1 (Revised 10-29-19) matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. Since the Parties or their agents have participated fully in the preparation of this Agre ement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. The captions of the various para graphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. No tice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the Parties to the addresses set forth in this Agreement. Vendor is retained as an independent contractor and is not an employee of the City. No employee or agent of Vendor shall become an employee of City. Vendor warrants that the individual who has signed this Agreement has the legal power, right and authority to make this Agreement and bind the Vendor hereto. C40010 Contract No. ______________ Ex. B-1 72500.00001\32374915.1 (Revised 10-29-19) EXHIBIT “B” SCOPE OF SERVICES AND COMPENSATION C40010 REQUEST FOR VENDOR QUOTES GAS AND DIESEL FUEL PURCHASE FOR FY 2020/21 Gas and Diesel Fuel Purchase for FY 20/21 (Revised 10-29-19) ATTACHMENT B VENDOR QUOTE FORM VENDOR NAME: ADDRESS: PHONE: EMAIL: _____________________________ The undersigned, hereby declare that they have carefully examined the location of the proposed work, familiarized themselves with the local conditions affecting the cost of the work, and have read and examined the terms and conditions for the following Project: GAS AND DIESEL FUEL PURCHASE FOR FY 2020/21 The undersigned, hereby propose to furnish all labor, materials, equipment, tools, transportation, and services, and to discharge all duties and obligations necessary and required to perform and complete the Project in strict accordance with the Vendor Price Quote for the ELECTRONICALLY SUBMITTED TOTAL VENDOR QUOTE PRICE. Instructions: The vendor shall insert per-gallon prices in every line that is applicable. If a line item is not applicable, the line may be left blank. To calculate the Total Delivered Cost, the vendor shall add the amounts in rows 1 through 11. 87 UNLEADED CLEAR DIESEL RED-DYED DIESEL 1.EXAMPLE OPIS FUEL PRICE (WITH CAR COST) 5/14/2020 1.4422 1.2685 1.2743 2.FEDERAL EXCISE TAX 3.FEDERAL LUST TAX 4.FEDERAL OIL SPILL FEE 5.CALIFORNIA EXCISE TAX 6.CALIFORNIA LEAD POISON 7.CALIFORNIA AB32 FEE 8.DELIVERY 9.MARKUP/PROFIT C40010 REQUEST FOR VENDOR QUOTES GAS AND DIESEL FUEL PURCHASE FOR FY 2020/21 Gas and Diesel Fuel Purchase for FY 20/21 (Revised 10-29-19) 10.ENVIRONMENTAL FEE 11.OTHER FEE (SPECIFY) TOTAL DELIVERED COST Weighted Amount Total Delivered Cost for 87 Unleaded:multiply by 3 = A Total Delivered Cost for Clear Diesel: multiply by 1 = B Total Delivered Cost for Red-Dyed Diesel: multiply by 1 = C Total Weighted Bid Amount A + B + C: I hereby declare under penalty of perjury that the foregoing is true and correct. Submitted By:Title: (Authorized Representative Signature) Print Name: Number and Classification: DIR Registration Number (if applicable): C40010