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HomeMy WebLinkAboutPurchase Gas & Diesel - City Fleet & DW Maint VehiclesCITY 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., FOR FY 2016/17 IN AN AMOUNT NOT TO EXCEED $245,000 SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works VENDOR: Beck Oil, Inc. 85-119 Leoco Lane Coachella, CA 92236 DATE: September 22, 2016 Recommendation By Minute Motion, approve the purchase of gas and diesel fuel from Beck Oil, Inc., for FY 2016/17 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. Strate4ic Plan Obiective This is an on -going maintenance function and as such, does not directly contribute to the objectives of the Strategic Plan. Background 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. Staff Report Purchase of Gas and Diesel Fuel from Beck Oil, Inc. Page 2 of 3 September 22, 2016 The cost of the fuel itself is determined by 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 a day depending upon market conditions. When purchasing fuel, the bid amount will be added to the OPTS average rack rate to determine the total per -gallon cost paid. A call for bids was advertised in the newspaper, and local vendors were encouraged to submit bids. On September 6, 2016, bids were opened and read aloud. Below are the results: Contractor Location Bid Score Beck Oil, Inc. Coachella, CA 10.51 The Soco Group Carlsbad, CA 11.62 The City uses three different fuels: 87 unleaded, clear diesel, and red -dyed diesel. Red - dyed diesel functions the same as clear diesel, but costs less because it is restricted to off-street purposes. The red -dyed diesel will be used at the Desert Willow Golf Course facility and for emergency generators. 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 .496103 .377406 .217406 Per Gallon Cost 2.151203 2.102506 1.949206 Weighting X 3 X 1 X 1 Weighted Price 6.453609 2.102506 1.949206 The sum of the weight prices equals the bid score: 10.505321. Public Works has reviewed the bid and recommends that Council approve the purchase of fuel from Beck Oil, Inc. for the remainder of Fiscal Year 16/17. Staff Report Purchase of Gas and Diesel Fuel from Beck Oil, Inc. Page 3of3 September 22, 2016 Fiscal Analvsis This is a necessary, on -going expense with no fiscal impact beyond the cost of the fuel. Prepare Ryan yler, Proje Admin rator cp" ✓/ lam' Jar f tt /toore, Director of Finance Approval: McCarthy, Inte er D e p a ke/a d: 00( Mark Gre n ood, P.E., Director of P blic Works CITY OF PALM DESERT GASOLINE AND DIESEL FUEL BID INFORMATION BIDDER/VENDOR INFORMATION: Name: jir_�L PHONE NUMBER: 7(,0 398- •ZnS/ Address: 8Si/% Loea FAX NUMBER: 76o - jjpt 6SL8 CDac�ir ��s. t�4. !PZZ-3,1C EMAIL CONTACT: Two 6 P �u� i�/iJrt lac+ Below is a table showing all the locations where the City of Palm Desert has fuel delivered. In 2015 the Corporation Yard was supplied with approximately 28,000 gallons of 87 octane unleaded gasoline with Mo ethanol (87 unleaded) and 2,700 gallons of diesel. Desert Willow was supplied with approximately 12,000 gallons of 87 unleaded and 12,000 gallons of diesel. The generators received an insignificant amount of diesel, just enough to top off the tanks about twice a year. Past use is no guarantee of future use. The vendor will supply the Corporation Yard with clear diesel, and all other locations will be supplied with red -dyed diesel. Site Corporation Yard Site Address 74-705 42nd Avenue Desert Willow Golf Course 38-995 Desert Willow Drive Civic Center Generator Fire Station 33 Generator - Fire Station 67 Generator 73-510 Fred Waring Drive 44-400 Town Center Way 73-200 Mesa View Drive Fire Station 71 Generator 73-995 Country Club Drive 87 UNLEADED 2,000 gallon tank 1,000 gallon tank 1 DIESEL 1,000 gallon tank 1,000 gallon tank 1,000 gallon tank 100 gallon tank • 145 gallon tank 100 gallon tank The OPTS Unbranded Rack Average Price for Colton with Cap -at -the -Rack (with CAR) cost included will be used by the City as a Base Price. in the bid form on the following page, the vendor will provide per -gallon rates that include all costs including, but not limited to delivery, profit, taxes (excluding sales tax), and other fees. For invoicing, the vendor shall show, at minimum, the OPIS Colton Unbranded Rack Average (with CAR) plus the detailed cost of taxes, fees, and other expenses, the quantity of fuel delivered, a sub -total, sales tax, and a grand total. The vendor shall include with the invoice a printout of the appropriate OPIS rack report for the date of purchase. 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. 87 UNLEADED CLEAR DIESEL RED -DYED DIESEL 1. EXAMPLE OPTS FUEL PRICE Y N' (WITH CAR COST) 8/19/2016 2. FEDERAL EXCISE TAX 3. FEDERAL LUST TAX pp/ , oo/ .001 4. FEDERAL OIL SPILL FEE pp /7/ pp/ p S. CALIFORNIA EXCISE TAX , ,2 78 6. CALIFORNIA LEAD POISON , o o// 7. CALIFORNIA AS32 FEE 00'e.2.03 - oo /soL Do 13-a= 8. DELIVERY 9. MARKUP/PROFIT �, / j . 2/3 1l3 10. ENVIRONMENTAL FEE 11. OTHER FEE (SPECIFY) 4dw ..0 A TOTAL DELIVERED COST I- /5'/1n ? a./odSoL Total Delivered Cost for 87 Unleaded: Total Delivered Cost for Clear Diesel: Total Delivered Cost for Red -Dyed Diesel Total Weighted Bid Amount A + B + C: Signature: ��� and agrees to furnish evidence of coverage) Weighted Amount Z.. /5'•/zo3 multiply by 3 = G. f!5.36 of A 2. /o JxSa.Z multiply by 1 = Z. /o 2 SoL 8 fVfio4 multiply by 1 = / f919do-c C (Signatory acknowledges receipt of the insurance requirements, Vendor shall not commence services under this Agreement until it has provided evidence satisfactory to the City of Palm Desert that it has secured all insurance required under this section. In addition, Vendor shall not allow any subcontractor(s) to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor(s) has secured all insurance required under this section. Without limiting Vendor's indemnification of City, and prior to commencement of services, Vendor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City. General Liability Insurance: Vendor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. Automobile Liability Insurance: Vendor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Vendor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident Workers' Compensation Insure ce: Vendor shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Vendor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City of Palm Desert, its officers, agents, employees and volunteers. Umbrella or Excess Liability Insurance: Vendor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Vendor shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than 4,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer's liability. Such policy or policies shall include the following terms and conditions: • A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and Policies shall "follow form" to the underlying primary policies. Insureds under primary policies shall also be insureds under the umbrella or excess policies Pollution Liability Insurance: Environmental Impairment Liability Insurance shall be written on a Vendor's Pollution Liability form or other form acceptable to the City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as "covered operations." The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non - owned disposal sites. Products/completed operations coverage shall extend a minimum of three years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed "by or on behalf" of the insured. Policy shall contain no language that would invalidate or remove the insurer's duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City of Palm Desert, its officials, officers, agents, and employees, shall be included as insureds under the policy. OTHER PROVISIONS OR REQUIREMENTS Insurance for Subcontractors: All subcontractors shall be included as additional insureds under the Vendor's policies, or the Vendor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the subcontractors' policies. Vendor shall provide to City satisfactory evidence as required under Insurance Section of this Agreement. Proof of Insurance: Vendor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of Coveraae: Vendor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Vendor, his/her agents, representatives, employees or subcontractors. Citv's Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Vendor, or City will withhold amounts sufficient to pay premium from Vendor payments. In the alternative, City may cancel this Agreement. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. Waiver of Subroaation: 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 appointed 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 City of Palm Desert and shall require similar written express waivers and insurance clauses from each of its subcontractors. Enforcement of Contract Provisions (non estoppell: Vendor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Vendor of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Primary and Non-Contributina Insurance: All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. Specifications Not Limitinq: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. Notice of Cancellation: Vendor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten [10] day notice is required) or nonrenewal of coverage for each required coverage. Additional Insured Status: General liability, Automobile Liability, and if applicable, Pollution Liability, policies shall provide, or be endorsed to provide, that the City of Palm Desert and its officers, officials, employees, and agents shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess liability policies. Citv's Riaht to Revise Saecifications: The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Vendor ninety (90) days 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. Self -Insured Retentions: Any self -insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. Timely Notice of Claims: Vendor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Vendor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Safety: Vendor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Vendor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. Additional Insurance: Vendor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.