HomeMy WebLinkAboutGasoline & Diesel Fuel FY 2007/08CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Approve the Use of Kenny Strickland and SoCo Group for
Purchases of Gasoline and Diesel Fuel
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
DATE: June 14, 2007
CONTENTS: None
Recommendation:
By minute motion, approve the use of Kenny Strickland and SoCo Group
for purchases of gasoline and Diesel fuel for the City's vehicle fleet and
equipment for the 2007-2008 fiscal year.
Discussion:
The City's vehicles and equipment depend on Compressed Natural Gas (CNG),
gasoline and Diesel fuels to carry out our daily operations. The CNG fuel is purchased
through the primary 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.
For fiscal year 06-07, staff recommended that the City alternate the purchase of fuel
from these three local suppliers quarterly, in order to effectively document price
comparisons between distributors.
Since the fuel purchase price for the distributors fluctuates hourly, staff requested that
the distributor show both the posted price (the distributor's fuel purchase price) and the
price at which the fuel was being sold to the City on their invoices. All three local
distributors fulfilled the City's request and demonstrated a consistent discount per gallon
on fuel sold to the City. Lee Escher Oil provided a consistent $0.08 cent discount per
gallon. Both SoCo Group and Kenny Strickland showed a consistent $0.10 cent
discount. Due to their prompt service and the consistent $0.10 cent discount from
SoCo Group and Kenny Strickland, staff would like to continue to acquire their fuel
Approve Fuel Vendors FY 2007-08
Page 2
June 14, 2007
delivery services. In order to be fair to both suppliers, the City will request fuel delivery
for a six-month time period from each fuel supplier.
Public Works staff requests that the City Council approve the purchase of gasoline and
Diesel fuel from Kenny Strickland and SoCo Group due to their consistent fuel discount
and prompt delivery services to the City. Funds for purchases are available in the auto
fleet account number 110-4331-413-2170 for fiscal year 2007-2008.
Prepared by:
oslHernez
intenan•- Services Manager
Approv
Homer Cro
ACM for
Carlos L. Orte
City Manager
opment Services
Mark Green*ood, P.E.
Director of Public Works
aul Gibson
Finance Director
CITY COUNCIL ACTION:
APPROVED ✓ DENIED
RECEIVED OTHER
MEETING DATE ( 11 •(Y7
AYES : j30715i, f" l t�(SYI .�i�l +l� � , I �e.4 KPOIt I
NOES: NP_
ABSENT: Non f
ABSTAIN: jprte_
VERIFIED BY:i2)( Yn
Original on File with City Clerk's Office