Loading...
HomeMy WebLinkAboutFY 19-20 - Purchase Gas and DieselSTAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: May 23, 2019 PREPARED BY: David Reyes, Jr., Street Maintenance Supervisor REQUEST: Approve the purchase of gas and diesel fuel from Beck Oil, Inc. during Fiscal Year 2019/20 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: 1. Waive bid irregularities in the Beck Oil, Inc. bid; and 2. Approve the purchase of gas and diesel fuel from Beck Oil, Inc., during Fiscal Year (FY) 2019/20 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. Background Analysis 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 that 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 (OPTS), 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 May 23, 2019 - Staff Report Purchase of Gas and Diesel Fuel from Beck Oil, Inc. Page 2 of 3 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 in a locally circulated newspaper, and local vendors were encouraged to submit bids. On May 6, 2019, bids were opened and read aloud, with the following results: Contractor Location Bid Score Beck Oil, Inc. Coachella, CA 11.310 SC Fuels Orange, CA 12.213 In the Beck Oil, Inc., bid submittal there was minor irregularity in addition. The contractor totaled the column for unleaded fuel as $2.339466 when it should have been $2.319114. The error reduces their bid score to 11.2659. While changing the overall bid score, the profit margin, which is the supplier variable will not change. The City Attorney has advised that irregularity is minor in nature and able to be waived by Council. 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: Unleaded Clear Diesel Dyed Diesel OPIS Rack Rate for 8/19/16 1.6551 1.7251 1.7318 Tax, Delivery, and Profit .6640 .6059 .2459 Per Gallon Cost 2.3191 2.3309 1.9777 Weighting X 3 X 1 X 1 Weighted Price 6.9573 2.3309 1.9777 The sum of the weighted prices equals the bid score, as corrected Therefore, staff recommends that the City Council approve the purchase of fuel from Beck Oil, Inc. for FY 2019/20. Fiscal Analysis This expense was included in the FY 2019/20 budget; therefore, it has no fiscal impact beyond the cost of the fuel. May 23, 2019 - Staff Report Purchase of Gas and Diesel Fuel from Beck Oil, Inc. Page 3 of 3 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Robert W. Hargreaves Tom Garcia, P.E. oore Lauri Aylaian City Attorney Director of Public Works Director of Finance City Manager VENDOR: Beck Oil, Inc. 85-119 Leoco Lane Coachella, California 92236 CONTENTS: Bid - Beck Oil, Inc. sE BECK OIL, INC. OILS SERVICE DRIVEN SINCE 1967 City of Palm Desert Gasoline and Diesel Fuel Supply FY 19/20 April 29, 2019 City of Palm Desert Attn: Rachelle D. Kiassen, City Clerk Beck Oil, Inc. is grateful to have been the trusted fuel supplier to the City of Palm Desert over the past five decades and is pleased to offer the following Bid for continued fuel supply through 2019-2020 Fiscal Years. Please note, Beck Oil, Inc. has a fiat rate Delivery Fee of $6.59, not applicable to the "Per Gallon" break down on Bid Form. This is a "per delivery" fee and will remain fixed. Thank you for this opportunity to continue our dependable fueling services throughout the term of this Bid. Sincerely, Steve Clevenger Commercial Sales Manager 16640 D St., Vtctcrville, CA 92395 1 760-245-4191 1 Fax 760-246-6129 CITY OF PALM DESERT GASOLINE AND DIESEL FUEL BID FORM 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. 1. EXAMPLE OPIS FUEL PRICE (WITH CAR COST) 8/19/2016 2. FEDERAL EXCISE TAX 3. FEDERAL LUST TAX 4. FEDERAL OIL SPILL FEE S. CALIFORNIA EXCISE TAX 6. CALIFORNIA LEAD POISON 7. CALIFORNIA AB32 FEE 8. DELIVERY 9. MARKUP/PROFIT 10. ENVIRONMENTAL FEE 11. OTHER FEE (SPECIFY) TOTAL DELIVERED COST 87 UNLEADED CLEAR DIESEL RED -DYED DIESEL 1.fi551 1.72�5�1 1.7318 N/A .001 .001928 .417 .00110 .002986 *SEE NOTES .24 N/A 2.339466 Total Delivered Cost for 87 Unleaded: 2.339466 Total Delivered Cost for Clear Diesel: 2.330957 Total Delivered Cost for Red -Dyed Diesel: 1.977657 Total Weighted Bid Amount A + B + C: N/A .001 .002143 .36 N/A .002714 .24 N/A 2.330957 N/A .001 .002143 N/A N/A .002714 .24 N/A 1.977657 Weighted Amount multiply by 3 = 7.0018398 A multiply by 1 = 2.330957 B multiply by 1 = 1.977657 C 11.310453 Signature: ' (Signatory acknowledges receipt of the insurance requirements, and agrees to Turn' evidence of coverage) NOTARY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } )SS County of Riverside } On Ma i 0 201 before me, Plilr'; a Notary Public, personally appeared __,54eueA jwmes C'1eu� ,r' , who pr ved to me on the basis of satisfactory evidence to b� the person(s whose name(s) is/ re subscribed to the within instrument and acknowledged to me that�he/they execute the same in Qi her/their authorized capacity(ies), and that by Is erltheir signature(s) on the instrument the person(s), or the entity upon behalf of which t e persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature i C. BUENO Commisslan # 2126894 z .�m Notary Public - California a Riverside County My Comm. Expires Sep 17.2019 (Seal) A U® CERTIFICATE OF LIABILITY INSURANCE °A�'M"�°°11f1�`"' 09128/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOTAFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND ORALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED 4 REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT- If the certificate holder Is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder In lieu of such endomement(s). PRODUCER CONTACT Jessica Ramirez ! AME: McConnell. Manit & Trout Insurance Services, LLC (� E E MI (805) 545-8206 f FAX Net: (805) 545-822' P.O. Box 637 lADMDAIREESS, Iramirez@mmtinsurance.com I INSUPLIERIS) AFFORDING COVERAGE NAIL o San Luis Obispo CA 93406 INSURERA: Philadelphia Indemnity Insurance Companies 10858 INSURED INSURERS: Zenith Insurance Company 13?69 Beck Oil Inc, DBA: Berk Oil Inc INSURERC: 16640 D Street 119SURF-RD: INSURER E : I Victorville CA 92395 INSURERF: COVERAGES CERTIFICATE NUMBER: 18-19 GLALAI WOS REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. EXP LTR TYPE OF INSURANCE NqQ WV0 POLICY NUMBER (MOMIUDDIYYYY) IM POLICY LIMITS x COMMERCIAL GENERAL LIABILITY CLAIMS -MADE © OCCUR A i Y Y PHPKI886782 GENLAGGREGATE LIMITAPPLIES PER: Q PRO - POLICY POLICY LOC OTHER: AUTOMOBILE LIABILITY X ANYAUrO A — OVIMED SCHEDULED Y PHPKI886782 _ AUTOS ONLY AUTOS HIRED NON -OWNED P AUTOS ONLY AUTOS ONLY X UMBRELLA UAB OCCUR A EXCESS LIAR HCLAIMS-MADE PHUB646908 DED RETENTION $ WORKERS OMP .HSATION AND EMPLOYERS' LIABILITY YIN ANY PROPRnETORIPARTNE.RIEXECUTIVE Y Z135339201 B OFFICER/MEMBER EXCLUDED? ❑ NIA (Mandatory In NH) If describe under DESCRIPTION OF OPERATIONS below EAC BURR% s 1. PREMISES fEe occurrence) 50,00,000 $ 50000 MED EXP Ww one person) S 10,000 10101/2018 10/01/2019 PERSONAL & ADV I NJURY s 1,000,000 GENERALAGGREGATE $ 2,000,000 PRODUCTS-COMP/OPAGG S 2.000.000 Employee Benefits $ 1,000,000 rCOMBINdEDSINGLELIMIT EBI $ 1,000,000 BODILY INJURY (Per person) S 10101 /2018 1010112019 BODILY INJURY (Per accident) $ DAMAGE S (POPERTY 7i=Underinsured i s EACH OCCURRENCE s 4,000,000 10/01/2018 iii/ai P019 AGGREGATE $ 4,000.000 S Xl PER ERH 1010112018 10/01/2019 E.L. EACH ACCIDENT S 1,000.000 ' EL DISEASE -EA EMPLOYEE S "0001000 E.L. DISEASE - POLICY UMIT S 11000-000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remade Schedule, maybe attached If more apace Is required) RE: Delivery of fuel City of Palm Desert is named as additional Insured, Wth respects to General liability per the attached PI-GLD-FDL (1Oil 2) (pg.4 section H) and Auto Liability per attached PI-FDL-00810/12. Waiver of Subrogration Endorsement Applies per attached endorsement WC 99 04 25B 10107. t , CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFO E THE EXPIRATION DATE THEREOF, NOTICE WILL HE DELIVERED IN City of Palm Desert ACCORDANCE WITH THE POLICY PROVISIONS. f 73510 Fred Waring Drive AUTHORIZED REPRESENTATIVE (� Palm Desert CA 92260 m 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD PI-FDL-008 (10/12) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, ADDITIONAL INSURED BY CONTRACT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. A. SECTION 11— LIABILITY COVERAGE, A. Coverage, 1. Who Is An Insured is amended by adding i the following: The following are also "insureds": Any person or organization other than a joint venture, for which you have agreed by written contract to procure "bodily injury" or "property damage" liability insurance arising out of the operation of a covered "auto" with your permission. However, this additional insurance does not apply to: 1. The owner or anyone else from whom you hire or borrow a covered "auto." This exception does ; not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own; 2. Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household; 3. Anyone using a covered "auto" while he or she is working In a business of selling, servicing, I repairing, parking or storing "autos" unless that business Is yours; 4. Anyone other than your "employees," partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees," while moving property to or from a covered "auto'; or 5. A partner (if you are a partnership), or a member (if you are a limited liability company) for covered "auto" owned by him or her or a member of his or her household. B. The coverage extended to any additional insured by this endorsement is limited to, and subject to all terms, conditions, and exclusions of the Coverage Part to which this endorsement is attached. In addition, coverage shall not exceed the terms and conditions that are required by the terms of the written agreement to add any "insured," or to procure insurance. I C. The limits of insurance applicable to such insurance shall be the lesser of the limits required by the agreement between the parties, or the limits provided by this policy. D. The following additional exclusions apply: The insurance afforded to any person or organization as an "insured" under this endorsement does not apply to "loss": 1. Which occurs prior to the date your contract is effective with such person or organization; 2. Arising out of the sole negligence of any person or organization that would not be an "insured" except for this endorsement; or Page 1 of 2 PI-FDL-008 (10/12) i 3. For any leased or rented "auto" when the lessor or his or her agent takes possession of the leased or rented "auto" or the policy period ends, whichever occurs first. j Page 2 of 2 PI-FDL-001 (10/12) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL AUTOMOBILE ELITE ENDORSEMENT: - FUEL DEALERS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE PART Following is a summary of the Limits of Insurance and additional coverages provided by this endorsement. For complete details on specific coverages, consult the policy contract wording. Page Coverage Applicable Limit of Insurance # Who Is An Insured 2 �- Newly Acquired Entities Included Designated Insured Included Lessor of Leased Autos Included Cost of Bail Bonds $5,000 2 ' I Reasonable Expenses — Loss of Earnings $500 per day 2 Fellow Employee Coverage Amended 3 Towin $100 per disablement 3 Glass Breakage (Windshields and Windows) No deductible applies 3 Transportatiop Expenses $100 per day / $3,000 maximum 3 Hired Auto Physical Damage — Loss of Use $100 per day / $1,000 maximum 3 Hired Auto Physical Damage ACV or repair or replacement of the 4 vehicle whichever is less Personal Effects $500 4 Rental Reimbursement $100 per day 130 days 4 Accidental Discharge —Air Bag Amended 5 Electronic Equipment $1000 5 i Original Equipment Manufacturer Parts Included 5 i Replacement :. Auto Loan / Lease Gap Coverage Amended 6 One Comprehensive Coverage Deductible Per Amended 7 Occurrence Notice of and Knowledqe of Occurrence Amended 7 i Blanket Waiver of Subrogation Amended (as required by written contract) 7 Unintentional Errors or Omissions Amended 7 Mental Anguish — Bodily Injury Redefined Amended 8 Coverage extensions under this endorsement only apply in the event that no other specific coverage for these extensions is provided under this policy. If such specific coverage applies, the terms, conditions and limits of that coverage are the sole and exclusive coverage applicable under this policy, unless otherwise noted in this endorsement. Any deductible listed in the Auto Declarations Page will apply unless specific deductible provisions are set ; forth under a coverage enhancement below. Page 1 of 8 © 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-FDL-001 (10/12) f I. LIABILITY COVERAGE EXTENSIONS A. Who Is An Insured SECTION II — LIABILITY COVERAGE, A. Coverage,1. Who Is An Ensured is amended by adding the following: The following are also "insureds": 1. Newly Acquired Entities — Any business entity newly acquired or formed by you during the policy period, provided you own 50% or more of the business entity and the business entity is not separately insured for Business Auto Coverage. Coverage is extended up to a maximum of 180 days following the acquisition or the formation of the business entity. 2. Designated Insured —Any person or organization designated by the "insured" is an "insured" for Liability Coverage, but only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured Provision contained in SECTION II of the Coverage Form. 3. Lessor of Leased Autos — The lessor of a "leased auto" is an "insured" only for "bodily injury" or "property damage" resulting from the acts or omissions by: i a. You; E� b. Any of your "employees" or agents; or { c. Any person, except the lessor or any "employee" or agent of the lessor, operating a "leased auto" with the permission of any of the above. Any "leased auto" in the policy schedule will be considered a covered "auto" you own and not a covered "auto" you hire or borrow. The coverages provided under this endorsement apply to any "leased auto" in the policy ' schedule until the expiration date of the lease, or when the lessor or his or her agent takes possession of the "leased auto," whichever occurs first. "Leased auto" means an "auto" leased or rented to you, including any substitute, replacement or extra "auto° needed to meet seasonal or other needs, under a leasing or rental agreement that requires you to provide direct primary insurance for the lessor. B. Cost of Ball Bonds SECTION it — LIABILITY COVERAGE, A. Coverage, 2. Coverage Extensions, a. Supplementary Payments, Item (2) Is deleted in its entirety and replaced with the following: (2) Up to $5,000 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident' we cover. We do not have to furnish these bonds. C. Reasonable Expenses SECTION II — LIABILITY COVERAGE, A. Coverage, 2. Coverage Extensions, a. Supplementary Payments, Item (4) is deleted in its entirety and replaced with the following: (4) All reasonable expenses incurred by the "insured" at our request, including actual ? loss of earnings up to $500 a day because of time off from work. ; i Page 2 of 8 ' 0 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. I PI-FDL-001 (10/12) D. Fellow Employee Coverage SECTION II — LIABILITY COVERAGE, B. Exclusions, 5. Fellow Employee is deleted In Its entirety and replaced by the following: ! "Bodily injury" to any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while performing duties related to the conduct of your business. However, this exclusion does not apply to any manager or officer of your company. d' II. PHYSICAL DAMAGE COVERAGE EXTENSIONS A. Towing SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 2. Towing is deleted in its entirety and replaced with the following: 2. Towing We will pay up to $100 for towing and labor costs incurred each time a covered "auto" is �. disabled. However, the labor must be performed at the place of disablement. No deductible applies to this enhancement. We will pay only for those covered "autos" for which you cant' either Comprehensive or Specified Causes of Loss Coverage. B. Glass Breakage SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 3. Glass Breakage — Hitting A Bird Or Animal — Failing Objects Or Missiles is amended by adding the following: s No deductible applies to "loss" to glass used in the windshield or windows. ' We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. # C. Transportation Expenses i SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions, a. ! Transportation Expenses is deleted in its entirety and replaced with the following: a. Transportation Expenses We will pay up to $100 per day to a maximum of $3,000 for temporary transportation expenses incurred by you because of a "loss" to a covered "auto." We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. We will pay for temporary transportation expenses Incurred during the period beginning 48 hours after the "loss" and ending, regardless of the policy's _ expiration, when the covered "auto" is returned to use or we pay for its "loss." D. Hired Auto Physical Damage — Loss of Use The last sentence of SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extension, b. Loss of Use Expenses is deleted in its entirety and replaced with the Page 3 of 8 © 2012 Philadelphia Consolidated Holding Corp.; Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-FDL-001 (10/12) following: However, the most we will pay for any expenses for loss of use is $100 per day, to a maximum of $1,000. E. Hired Auto Physical Damage SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions is amended by adding the following extension: Hired Auto Physical Damage Any "auto"you lease, hire, rent or borrow from someone other than your "employees" or partners, or members of their household is a covered "auto" for each of your physical damage coverages. The most we will pay for any "loss" in any one "accident" is the ACV or the cost for repair or replacement of the vehicle, whichever is less. For each covered "auto" our obligation to a will be reduced b a deductible of $500 for y Comprehensive Coverage and $1000 for Collision Coverage. F. Personal Effects Coverage qq' SECTION III -- PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions is Ii• f amended by adding the following extension: Personal Effects Coverage �. We will pay up to $500 for "loss" to personal effects, which are: 1. Owned by an "insured'; and 2. In or on your covered "auto." This coverage applies only in the event of the total theft of your covered "auto." No deductible applies to this coverage. G. Rental Reimbursement SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions is amended by adding the following extension: Rental Reimbursement Coverage We will pay up to $100 per day, for up to 30 days, for rental reimbursement expenses d incurred by you for the rental of an "auto" because of "loss" to a covered "auto." We will also pay up to $300 for reasonable and necessary expenses incurred by you to remove and replace your materials and equipment from the covered "auto." We will pay only for those covered "autos" for which you cart' either Comprehensive or Specified Causes of Loss Coverage. Page 4 of 8 f © 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. _ 1 1 PI-FDL-001 (10/12) If °loss" results from the total theft of a covered "auto," we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under Item Ill. C. Transportation Expenses of this endorsement. H. Accidental Discharge — Airbag Coverage SECTION Ill — PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph 3, is amended by adding the following exception: This exclusion does not apply to the accidental discharge of an airbag. This coverage is excess of any other collectible insurance or warranty. No deductible applies to this .I coverage. I. Electronic Equipment Coverage The following supersedes anything to the contrary in SECTION Ill — PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph 4. ` Exclusions 4.c. and 4.d. do not apply to: Any risk management or monitoring equipment and electronic equipment that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. This coverage applies only if the equipment is permanently installed in the covered "auto" at the time of the "loss" or the equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss," and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto." The most we will pay for all "lass" to risk management or monitoring equipment, audio, visual or data electronic equipment that is not designed solely for the reproduction of sound and any accessories used with this equipment as a result of any one "accident" is the least of a. The actual cash value of the damaged or stolen property at the time of the "loss"; b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or c. $1,000. This coverage will not apply if there Is other insurance provided by this policy for the above - described electronic equipment. We will, however, pay any deductible, up to $500, that is ; applicable under the provisions of the other insurance. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. J. Original Equipment Manufacturer (OEM) Parts Replacement SECTION Ill — PHYSICAL DAMAGE COVERAGE, C. Limit of Insurance, Paragraph 1. is amended to include: However, if the covered "auto" has less than 20,000 miles on its odometer, then the following condition will apply: Page 5 of 8 } ® 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-FDL-001 (10/12) 33 .1 We will pay the cost to replace the damaged parts (excluding glass and mechanical parts) with new Original Equipment Manufacturer replacement parts if the damaged parts cannot be repaired. K. Auto Loan I Lease Gap Protection " SECTION III — PHYSICAL DAMAGE COVERAGE, C. Limit of Insurance is amended to include + the following: ` 4. In the event of "loss° to a covered "auto" that is loaned or leased to an "insured": a. The most we will pay for "loss" in anyone "accident" is the lesser of: (1) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (2) The cost of repairing or replacing the damaged or stolen property with other property of like, kind and quality. b. Our Limit of Insurance for "total loss" will be the greater of: (1) The balance due under the terms of the lease or loan, to which your "auto" is subject' but not including: (a) Past due payments; (b) Financial penalties imposed under the lease; ; (c) Security deposits not refunded; (d) Costs for extended warranties or insurance; or (e) Final payment due under a "balloon loan"; or (2) Actual cash value of the stolen or damaged property. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of "loss." c. Additional Definitions (1) "Total loss" for the purpose of this coverage, means a loss in which the estimated cost of repairs, plus the salvage value, exceeds the actual cash value. , (2) "Balloon loan" is one with periodic payments that are insufficient to repay the balance_ over the term of the loan, thereby requiring a large final payment i d. Additional Conditions This coverage will apply only to the original lease or loan written on your covered "auto." ` In order for this coverage to apply, leased "autos" must be leased or rented to you under a leasing or rental agreement, for a period of not less than six months, which requires ' you to provide direct primary insurance for the benefit of the lessor. , Page 6 of 8 © 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-FDL-001 (10/12) L. One Comprehensive Coverage Deductible SECTION III — PHYSICAL DAMAGE COVERAGE, D. Deductible is amended by adding the following: Only one Comprehensive Coverage Deductible per occurrence will apply to any "loss" resulting from a covered peril. For the purpose of this extension, occurrence means a single incident, including continuous or repeated exposure to substantially the same general harmful conditions within a 24-hour period. III. BUSINESS AUTO CONDITIONS A. Notice and Knowledge of Occurrence f" i SECTION IV — BUSINESS AUTO CONDITIONS, A. Loss Conditions, 2. Duties In The Event Of Accident, Claim, Suit Or Loss, Paragraph a. is deleted in its entirety and replaced with the following: �. a. In the event of "accident," claim, "suit" or "loss," you must give us, or our authorized representative, prompt notice of the "accident" or "loss." Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. 11 Your duty to give us or our authorized representative prompt notice of the "accident" or "loss" applies only when the "accident" or "lass" Is known to: �I (1) You, if you are an individual; (2) A partner, if you are a partnership; or (3) An executive officer or insurance manager, if you are a corporation, B. Blanket Waiver Of Subrogation SECTION IV — BUSINESS AUTO CONDITIONS, A. Loss Conditions, S. Transfer Of Rights Of ,. Recovery Against Others To Us, is amended by adding the following exception: However, we waive any right of recovery we may have against any person or organization because of payments we make for "bodily injury" or "property damage" arising out of the operation of a covered "auto" when you have assumed liability for such "bodily injury" or "property damage" under an "insured contract." C. Unintentional Errors or Omissions SECTION IV — BUSINESS AUTO CONDITIONS, B. General Conditions, 2. Concealment, Misrepresentation, Or Fraud is amended by adding the following: it Page 7 of 8 © 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. I PI-FDL-001 (10112) 1 The unintentional omission of, or unintentional error in, any information given by you shall not prejudice your rights under this insurance. However, this provision does not affect our right to collect additional premium or exercise our right of cancellation or non -renewal. IV. DEFINITIONS A. Mental Anguish SECTION V — DEFINITIONS, C. "Bodily injury" is amended by adding the following: "Bodily injury" also includes mental anguish but only when the mental anguish arises from other bodily injury, sickness, or disease. f y�. Page 8 of 8' © 2012 Philadelphia Consolidated Holding Corp. Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-GLD-FDL (10/12) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GENERAL LIABILITY DELUXE ENDORSEMENT: FUEL DEALERS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM It is understood and agreed that the following extensions only apply in the event that no other specific ' coverage for the indicated loss exposure are provided under this policy. If such specific coverage applies, the terms, conditions and limits of that coverage are the sole and exclusive coverage applicable under this policy, unless otherwise noted on this endorsement. The following is a summary of the Limits of Insurance and additional coverage provided by this endorsement. For complete details on specific coverages, consult the policy contract wording. Coverage Applicable Limit of Insurance Page # Damage to Premises Rented to You $300,000 2 Truth in Lending or Leasing Liability Coverage Included 2 Incidental Medical Services Coverage Included 2 Expected or Intended Injury — Property Damage Included 3 Non -Owned Watercraft Less than 58 feet 3 Limited Coverage for Damage to Personal Property in Your Care, 3 Custody or Control Included Supplementary Payments — Cost of Bail Bonds $2,500 4 Supplementary Payments — Loss of Earnings $500 per day 4 Who Is An Insured 4 Additional Insured — Newly Acquired or Formed Organization 180 Days Additional Insured — Broadened Named Insured Included Additional Insured — Managers and Supervisors Included ' Additional Insured — Managers, Landlords or Lessors of Premises Included i Additional Insured — Lessors of Leased Equipment — Automatic Status When Required in Lease Agreement With You Included Duties in the Event of Occurrence, Offense, Claim or Suit Included 5 t . Transfer of Rights of Recovery Against Others To Us Amended 5 Liberalization Included 5 Unintentional Failure to Disclose Hazards Included 5 Bodily Injury — Mental Anguish Included 6 l Personal and Advertising Injury — Includes Abuse of Process, Included 6 Discrimination Page 1 of 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission. .}t PI-GLD-FDL (10/12) l A. Damage to Premises Rented to You r: If damage by fire to premises rented to you is not otherwise excluded from this Coverage Part: 1. The Damage To Premises Rented To You Limit section of the Declarations is amended to the - greater of a. $300,000, or b. The amount shown in the Declarations as the Damage to Premises Rented to You Limit. This is the most we will pay for all damage proximately caused by the same event, whether such damage results from fire, lightning, explosion, smoke, or leaks from automatic fire protective systems or any combination thereof; 2. The word fire is changed to fire, lightning, explosion, smoke or leakage from automatic fire protective systems where it appears in: a. The last paragraph of SECTION I — COVERAGES, COVERAGE A BODILY INJURY AND i PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions; b. SECTION III — LIMITS OF INSURANCE, Paragraph 6.; c. SECTION V — DEFINITIONS, Paragraph 9.a. 3. The words fire insurance are changed to insurance for fire, lightning, explosion, smoke, or leakage from automatic fire protective systems where it appears in SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS, Subsection 4.Other Insurance, Paragraph b. Excess Insurance. B. Truth in Lending and Leasing Liability Coverage SECTION I — COVERAGES is amended to include the following additional coverage: ++ We will pay on your behalf all sums which you become legally obligated to pay as "damages" solely I by operation of 1. The Truth in Lending Section of the Consumer Credit Protection Act (15 U.S.C. Section 1601, et. seq.); or 2. Any similar statute which applies to your civil liability; and 3. Your error or omission during the policy period in failing to comply with that statute. This insurance does not apply to dishonest, malicious, fraudulent, criminal or intentional acts or omissions; however, this exclusion does not apply to you if such act or omission was committed by your "employees" (other than a partner, director, executive officer or stockholder) without your direction or your knowledge. f. "Damages" means amounts awardable by a court of law or administrative agencies. "Damages" does not mean civil penalties, fines, assessments, or demands for injunctive or equitable relief. C. Incidental Medical Services Coverage I SECTION I — COVERAGES is amended to include the following additional coverage: Page 2 of 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-GLD-FDL (10/12) 1. We will pay for "bodily injury" arising out of the rendering of or failure to render the following treatment or services by an "employee" or "volunteer worker" for an accident occurring during the policy period: a. First aid treatment including cardiopulmonary resuscitation (CPR); and b. Medical, surgical, dental, x-ray, or nursing service or treatment, or the furnishing of food or beverages in connection therewith; and the furnishing or dispensing of drugs, or medical, dental, or surgical supplies or appliances. However, this coverage does not apply to any insured or to any entity engaged in the business or occupation of providing the services or treatments described in a. and b. above. ;. 2. SECTION I — COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE f LIABILITY, 2. Exclusions, e. Employer's Liability does not apply to psychological injury arising out of the services described in C.1. D. Extended or Intended Injury — Property Damage SECTION I — COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions, Paragraph a. is deleted and replaced by the following: a. Expected or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. E. Non -Owned Watercraft �II SECTION I — COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE 1 LIABILITY, 2. Exclusions, g. Aircraft, Auto Or Watercraft, Paragraph (2) is amended to read as follows: (2) A watercraft you do not own that is: (a) Less than 58 feet long; and 1 (b) Not being used to carry persons or property for a charge; This provision applies to any person, who with your consent, either uses or is responsible for the use of a watercraft. This insurance is excess over any other valid and collectible insurance available to the insured whether primary, excess or contingent. F. Limited Coverage for Damage to Personal Property in Your Care, Custody or Control SECTION I — COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY, 2 Exclusions, J. Property Damage, Paragraph (4) is amended to include the following provision: With respect to "property damage" to personal property of others which occurs away from premises you own, rent or control, this exclusion will apply only when: i (a) The "property damage" is to property which you have contracted to install; Page 3 of 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission. PI-GLD-FDL (10/12) (b) The "property damage" is the direct result of the property being raised, lowered or otherwise moved by a crane; (c) The "property damage" is to "mobile equipment" or an "auto"; (d) The "property damage" is to that particular part of property which you are attempting to service or repair; or (e) You have other insurance which will pay for the "property damage." G. Supplementary Payments SECTION I — COVERAGES, SUPPLEMENTARY PAYMENTS — COVERAGES A AND B, Items 1.b. and 1.d. are amended as follows: b. The limit for the cost of bail bonds is changed from $260 to $2,500; and i d. The limit for loss of earnings is changed from $250 a day to $500 a day. H. Who Is an Insured SECTON II — WHO IS AN INSURED is amended as follows: 1. Newly Acquired or Formed Organization If coverage for newly acquired or formed organizations is not otherwise excluded from this Coverage Part, Paragraph 3.a Is changed to read: a. Coverage under this provision is afforded until the 180th day after you acquire or form the iI organization or the end of the policy period, whichever is earlier; 2. Each of the following is also an insured: a. Broadened Named Insured —Any organization and subsidiary thereof which you control and i actively manage on the effective date of this Coverage Part. However, coverage does not apply to any organization or subsidiary not named in the Declarations as Named Insured, if they are also insured under another similar policy, but for its termination or the exhaustion of its limits of insurance. b. Managers and Supervisors — If you are an organization other than a partnership or joint venture, your managers and supervisors are also insureds, but only with respect to their duties as your managers and supervisors. c. Managers, Landlords, or Lessors of Premises — Any person or organization with respect to their liability arising out of the ownership, maintenance or use of that part of the premises leased or rented to you subject to the following additional exclusions: ; This Insurance does not apply to: (1) Any "occurrence" which takes place after you cease to be a tenant in that premises. ; (2) Structural alterations, new construction or demolition operations performed by or on i behalf of that person or organization. d. Lessors of Leased Equipment —Automatic Status When Required In Lease Agreement With You — Any person or organization from whom you lease equipment when you and such Page 4 of 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission. L PI-GLD-FDL (10/12) #. person or organization have agreed in writing in a contract or agreement that such person or organization is to be added as an additional insured on your policy. Such person or organization is an insured only with respect to liability for "bodily Injury," "property damage" or "personal and advertising Injury" caused, in whole or in part, by your maintenance, operation, or use of equipment leased to you by such person or organization. - A person's or organization's status as an additional insured under this endorsement ends when their contract or agreement with you for such leased equipment ends. With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after the equipment lease expires. ` I. Duties in the Event of Occurrence, Offense, Claim or Suit 1. SECTION IV— COMMERCIAL GENERAL LIABILITY CONDITIONS, 2,a. the requirement that ; you must see to it that we are notified as soon as practicable of an "occurrence" or an offense, applies only when the "occurrence" or offense is known to: a. You, if you are an individual; b. A partner, if you are a partnership; or c. An "executive officer" or insurance manager, if you are a corporation. 2. SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS, 2.b. the requirement that you must see to it that we receive notice of a claim or "suit' as soon as practicable will not be considered breached unless the breach occurs after such claim or "suit" is known to: ` a. You, if you are an individual; b. A partner, if you are a partnership; or j c. An "executive officer" or insurance manager, if you are a corporation. j J. Transfer of Rights of Recovery Against Others To Us SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS, Paragraph 8. Transfer of Rights of Recovery Against Others To Us includes the following clarification: Therefore, the insured can waive the insurer's rights of recovery prior to the occurrence of a loss, provided the waiver is made in a written contract. ' K. Liberalization SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS is amended to include: 10. Liberalization If we revise this endorsement to provide more coverage without additional premium charge, we will automatically provide the additional coverage to all endorsement holders as of the day the revision is effective in your state. L. Unintentional Failure To Disclose Hazards SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS is amended to include: 1 11. Unintentional Failure To Disclose Hazards Page 6 of 6 i Includes copyrighted material of insurance Services Office, Inc., with its permission. K PI-GLD-FDL (10/12) It is agreed that, based on our reliance upon your representations as to existing hazards, if you should unintentionally fail to disclose all such hazards prior to the beginning of the policy period of this Coverage Part, we shall not deny coverage under this Coverage Part because of such failure. M. Bodily Injury — Mental Anguish SECTION V — DEFINITIONS, Paragraph 3. is changed to read: 3. "Bodily injury": a. Means bodily injury, sickness or disease sustained by a person, and includes mental anguish resulting from any of these; and b. Except for mental anguish, includes death resulting from the foregoing (Item a. above) at any time. N. Personal and Advertising Injury — Abuse of Process, Discrimination If COVERAGE B PERSONAL AND ADVERTISING INJURY LIABILITY COVERAGE is not otherwise excluded from this Coverage Part, the definition of "personal and advertising injury" is amended as follows: 1. SECTION V — DEFINITIONS, Paragraph 14., Item b. is revised to read: b. Malicious prosecution or abuse of process; 2. SECTION V — DEFINITIONS, Paragraph 14. is amended to include the following: "Personal and advertising injury" also means discrimination based on race, color, religion, sex, age or national origin, except when: a. Done intentionally by or at the direction of, or with the knowledge or consent of: (1) Any insured; or (2) Any "executive officer," director, stockholder, partner or member of the insured; or b. Directly or indirectly related to the employment, former or prospective employment, termination of employment, or application for employment of any person or persons by an insured; c. Directly or indirectly related to the sale, rental, lease or sublease or prospective sale, rental, lease or sub -lease of any room, dwelling or premises by or at the direction of any insured; or i d. Insurance for such discrimination is prohibited by or held in violation of law, public policy, legislation, court decision or administrative ruling. The above does not apply to fines or penalties imposed because of discrimination. Page 6 of 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission. F Thep WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY BLANKET WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against any person or organization with whom you have a written contract that requires you to obtain this agreement from us. The additional premium for this endorsement shall be 2% of the California workers compensation premium 1 otherwise due. Minimum Premium: $0 i This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise statedl, ZENITH INSURANCE COMPANY Endorsement Effective: 10/1/18 Insured: Beck Oil, Inc. Policy No. Z135339201 Policy Perlod 1011118 To 1011119 Issued On: 9127118 WC-99-04-25B (Ed. 10-07) At Pleasanton, CA 1A I