HomeMy WebLinkAboutReject Bids - Gas and Diesel - Re-advertise�N
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: REJECT ALL BIDS FOR THE PURCHASE OF GASOLINE AND
DIESEL FUEL AND AUTHORIZE THE CITY CLERK TO RE -
ADVERTISE
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
DATE: June 30, 2016
Recommendation
By Minute Motion:
1. Reject all bids for the purchase of gasoline and diesel fuel;
2. Authorize City Clerk to re -advertise and call for bids for the subject
purchase agreement; and
3. Authorize the extension of the current fiscal year fuel purchasing
agreement for a period of 90 days, or until the project is bid again,
whichever occurs first.
Strategic Plan Obiective
This is an on -going maintenance function and as such, does not directly contribute to
the objectives of the Strategic Plan.
Background
The City has advertised for bids for the delivery of gasoline and diesel fuel to the
Corporation Yard and Desert Willow Golf Course. The project was advertised, and on
June 21, 2016, bids were opened and read aloud. The following is a summary of bids
received:
Contractor Location Bid Price/gallon
Kenny Strickland, Inc. Coachella, CA $ 1.25
The Soco Group Indio, CA $ 3.442
The Bid Price is a weighted aggregation of three types of fuel that the City uses. The
bid amount is supposed to be made up of delivery fees, taxes, other fees, and profit.
Staff reviewed the bid documents and found that neither bidder included several State
and Federally mandated fees within their bid. The Public Works Department will clarify
Staff Report
Reject All Bids for Gasoline and Diesel Fuel Purchase
Page 2 of 2
June 30, 2016
bid instructions so there is no confusion in the future. Staff recommends Council reject
all bids and authorize the purchase agreement to be re -bid.
Public Works requests that the existing gasoline and fuel purchasing agreement be
extended, under the same terms, for a period of 90 days, or until new bids are received
and presented to Council, whichever occurs first.
Fiscal Analysis
There is no fiscal impact associated with this action.
Prepar By: nn
b%
,ail,
Rya ayler, P Ject Administrator
ane . Moore, Director of Finance
Approval:
d, Z 4 ;11 4
sti McCarthy, Interim C' Manager
Department Head:
Mark Greenwood, P.
Director of Public Works