HomeMy WebLinkAboutFuel PurchasesCITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
�N
REQUEST: Approve the Use of Lee Escher Oil Company, Kenny Strickland and
SoCo Group for Purchases of Gasoline and Diesel Fuel
SUBMITTED BY: Carlos Hernandez, Maintenance Services Manager
DATE: June 22, 2006
CONTENTS: None
Recommendation:
By minute motion, approve the use of Lee Escher Oil Company, Kenny
Strickland, and SoCo Group for purchases of gasoline and Diesel fuel for
the City's vehicle fleet and equipment for fiscal year 2006-07.
Discussion:
The City's vehicles and equipment depend on Compressed Natural Gas (CNG),
gasoline and Diesel fuels to carry out the daily operations. The CNG fuel is purchased
through the only distributor, Clean Energy, while gasoline and Diesel fuels are available
through three local bulk fuel suppliers, Lee Escher Oil, Kenny Strickland and SoCo
Group. Since fuel prices are volatile, standard annual fuel contracts are impossible. In
order to effectively document price comparisons between distributors, staff recommends
that the City purchase fuel from these three local suppliers. Each supplier will have the
opportunity to furnish the City with gasoline and Diesel fuel as part of a price -quote
process on a quarterly basis. Quarterly, staff will solicit price quotes from the three
distributors and place fuel orders based on the lowest available price.
In the recent past, practice has been to solicit the quotes each time a fuel order is
needed. Orders have been placed monthly or semi-monthly, and only one distributor
has responded to the requests for quotes. The anticipated benefit to the City from this
change is that the distributors may be more motivated to provide quotes for quarterly
usage amounts rather than for single purchase amounts, and there will be cost savings
in terms of staff time for managing the process.
Approve Use of Vendors for Gasoline and Diesel Fuels
Page2of2
June 22, 2006
Public Works staff therefore recommends that City Council approve the purchase of
gasoline and Diesel fuel from Lee Escher Oil, Kenny Strickland, and SoCo Group for
fiscal year 2006-07. Funds are available in the auto fleet account 110-4331-413-2170.
Submitted By: Department Hea
e-
Carlos Hernandez
Maintenance Services Manager
Approval:
ACM ror Diy4 pment Services
Homer Croy
City Manager
Carlos L. Ortega
Mark GreenWood, P.E.
Director of Public Works
Finance Director
Paul Gibson
CITY COUNCIL/ACTION:
APPROVED +/ DENIED
RECEIVED OTHER
MEETING DATE 1?-??, (.,
AYES- P ef Dr)) (1,r11-el It 1 '1' 12j e l h°ri L l n.r)
NOES: tJnv)f,
ABSENT: Non
ABSTAIN: N�V1�
VERIFIED BY • IU ►'�
Original on File witW City Clerk's Office
!ElhA
G:1Pub WorkslStaff Reports12006Uune 2214 Approve vendors for gas and diesel fuel purchases\Staff Report for Gas and Diesel Fuel 06-07.doc