HomeMy WebLinkAboutFY 15/16 - Vendor - Gas and Diesel FuelCITY OF PALM DESERT
PUBLIC WORKS
STAFF REPORT
REQUEST: APPROVE THE PURCHASE OF GAS AND DIESEL FUEL FOR
THE CITY'S FLEET AND EQUIPMENT, AND FOR DESERT
WILLOW'S MAINTENANCE VEHICLES AND EQUIPMENT FROM
BECK OIL, INC., KENNY STRICKLAND, AND THE SOCO
GROUP, INC., FOR FY 15/16 IN AN AMOUNT NOT TO EXCEED
$245,000
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
VENDOR: Beck Oil, Inc.
16640 D Street
Victorville, CA 92395
Kenny Strickland
50-021 Hwy 86
Coachella, CA 92236
The SoCo Group Inc.
5962 Priestly Drive
Carlsbad CA 92008
DATE: June 11, 2015
CONTENTS: Letters from Fuel Suppliers (3)
Recommendation
By Minute Motion, approve the purchase of gas and diesel fuel from Beck
Oil, Inc., Kenny Strickland, and The SoCo Group, Inc., for FY 15/16 for:
1. City's fleet and equipment in an amount not to exceed $145,000;
and
2. Desert Willow Maintenance Facility in an amount not to exceed
$100,000.
Funds are available in General Fund Account No. 1104331-4217000, Auto Fleet —
Supply Automotive Gas, and Account No. 5204195-4803100, Desert Willow
Maintenance Facility.
Staff Report
Purchase of Gas and Diesel Fuel from Specific Vendors
June 11, 2015
Page 2 of 2
Background
A number of City fleet vehicles and equipment depend on gasoline and diesel fuels to
achieve daily operations for the City and Desert Willow. Since fuel prices are
unpredictable, standard annual fuel contracts are not possible. Based on the quantity of
fuel purchased throughout the year, Public Works maintenance staff negotiated a 15-
cent discount from the posted price (the price the supplier charges the general public)
from the three local fuel suppliers.
The three local fuel suppliers, Beck Oil, Inc., Kenny Strickland, and The SoCo Group
Inc., have committed to provide the City with a 15-cent discount from the posted price,
without any restrictions, for FY 15/16. In order to be fair, the City will request fuel
delivery for a four -month time period from each fuel supplier for both locations.
Fiscal Analysis
This is a necessary, on -going expense with no fiscal impact beyond the cost of fueling
City vehicles.
Prepared By:
Depa
ed! efria d*& Mark r Rood, P.E.,
ainte ance Services Manager Directhr Of Public Works
Paul Gibson, Director of Finance
roval:
Join M. Wohlmuth, City Manager
L
BECK OIL, INC.
PETROLEUM PRODUCTS • CARDLOCKS
April 22, 2015
City of Palm Desert
City Corporate Yard
74705 42nd Avenue
Palm Desert, CA 92260
RE: Fuel Prices 2015-2016 Fiscal Year
Beck Oil, Inc. will deliver fuel to the City of Palm Desert at a discount of$.15 per gallon
off our posted daily price for the 2015/2016 Fiscal Year. Additionally, the City is Exempt
.183 per gallon FET on gasoline and .243 FET on Diesel fuel.
All prices shown include all applicable taxes. Prices are based on today's Colton Rack.
Prices may change daily but the discount will remain the same.
Thank you,
/Mc)�
Z
mbs
Coachella Operations Manager
Beck Oil Inc.
JC/cp
16640 I) STREET • VICI'ORVILLE, CALIFORNIA 92395 VICTORVILLE: (760) 245-4191 • INYOKERN: (760) 377-4373
0
April 23, 2015
4PHILLIPS
I I
Carlos G. Hernandez
Maintenance Service Manager
City of Palm Desert
s
Re: Discount 2015/2016
Vd1VDhW.
Kenny Strickland Inc. will be providing the City of Palm Desert with a .15 cent
discount per gallon for fuel purchases for the year 2015/2016
This applies to both facilities Desert Willow and City of Palm Desert
Maintenance Facility.
If you have any questions please don't hesitate to call me.
Thank you,
COACHELLA
e4oc Xaa --
N "41M i
50-021 HWY 86
Lourdes Aleman
COACHELLA, CA 92236
(760) 398-2031
Office Manager
760-398-2031
BANNING
270 WEST LINCOL.N
BANNING, CA 92220
(951)922-8882
HEMET
106 S. RAMONA ST
HEMET, CA 92543
(951) 656-5180
IMPERIAL
501 L B;1PI0!Nl BLVD
IMPERIAL, CA 92251
(760)355-0329
Superior
Service___
The SOLO Inc. Sorutivr�s
Petroleum Distributors
Attention:
Carlos Hernandez
Company:
City of Palm Desert
Address:
74-705 42nd Avenue
Palm Desert, CA 92260
Phone:
760 340-5776
E-mail:
chernandez ci of almdesert.or
RE: Fuel Pricing Discount
4/22/2015
From:
Analiza Pitts
Title:
Plant Manager
Address:
45-242 Commerce Street
Indio, CA 92234
Mobile:
213 276-2914
E-mail:
a itts thesoco rou .com
The SoCo Group will continue to supply the City of Palm Desert and Desert Willow with fuel deliveries at a 15 cents
discount per gallon off of our posted daily price for the fiscal year of 2015/2016.
Please let me know if you have any questions.
Thank you so much for your continued business.
Sincerely,
Analiza Pitts
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