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Home My WebLink AboutFY 08-09 - Vendors for Gas & Diesel Fuel CITY OF PALM DESERT PUBLIC WORKS STAFF REPORT REQUEST: Approve the Purchase of Gas and Diesel Fuel from Specified Vendors for Fiscal Year 2008-2009 SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: June 12, 2008 CONTENTS: Letters from Fuel Suppliers (3) Recommendation: By Minute Motion, approve funds for the purchase of gas and diesel fuel from SoCo Group,lnc., Kenny Strickland, Inc., and Lee Escher Oil Co., Inc. for City vehicles and equipment, for fiscal year 2008-2009, in an amount not to exceed $125,000.00. Discussion: Numerous City fleet vehicles and equipment depend on gasoline and diesel fuels to carry out daily operations. Since fuel prices are unpredictable, standard annual fuel contracts a�e not possible. For fiscal year 07/08, Public Works maintenance staff purchased fuel from two local fuel suppliers, SoCo Group and Kenny Strickland, at a consistent 10-cent discount from the posted price (the price the supplier charges the general public). Based on the quantity of fuel the City purchased from SoCo Group and Kenny Strickland during fiscal year 07/08, Public Works maintenance staff were able to negotiate a higher discount per gallon for the coming fiscal year. Although,Lee Escher did not provide the City with any fuel during fiscal year 07/08, they have committed to the same discount per gallon from the posted price as their competitors have offered. Therefore, all three local fuel suppliers have committed to providing the City with a 15- cent discount from the posted price for fiscal year 2008-09. In order to be fair to all three local fuel suppliers, the City will request fuel delivery for a four-month time period from each fuel supplier. Approve Funds for Purchasing Gas and Diesel for City Fleet June 12, 2008 Therefore, Public Works staff requests that City Council to approve $125,000.00 for purchasing gasoline and diesel fuels as needed from SoCo Group, Kenny Strickland, and Lee Escher, for fiscal year 2008-09. Funds are available in the Automotive Gas account number 110-4331-413-2170. Fiscal Impact: The ability to purchase fuels at a fifteen-cent discount amounts to a savings of approximately $18,000.00 for the twelve-month period. Prepar By: Department a : . � ar s na dez Mark Green ood, P.E., Mainten nc Services Manager Director of Public Works Approval� Homer Croy Paul Gibson ACM for De elop ent Services Finance Director �ITY COUNCZL ACTION: ��j� APPR(JV�D ✓ DENI�A �/ REC�dIVE�7 OTHER �� Carlos L. Orteg M$��g�� y��}r� �• ��• o City Manager ��'�S: F��-�r� , nerh., Kel/ S i ,a�icl� � NOLS: -`�,`'_��---�•- e. �asErrae: None ....._..__..s�.�,__�-- ABSTAT1eT: —_._..._�._..._.._..�....m...r�__�_.�.�..-- VEitIFIED BY: RdK m m��"�""""",._'�- Original on File w th Cttv C1'erk '� �f.f.;�,�c��3 To:+1-7607739025 Page 1 of 1 2008-OS-09 21:05:09(GMT) 1-76o-40a4021 From:Brian iverson The SOCO � 1 Inc. �uP'�'��?r K�+r raa Petroleum Distributors 5[?j[lf)`Q�7S A1TN: From: Brian Allen iverson With: City of Palm Desert With: The SoCo Group-Indio,CA Phone: (760} 346-0611 Office: (760)347-3750 Fax: (760}773-9025 Fax: (760}342-7388 Email: Cell: (760)272-9849 5/9/2008 2:04 PM As per our conversation today, I have reviewed your fuel totals for the past 12 months. Based on your average gallons per delivery I am able to adjust your pricing from its current 10 cent discount over list price to 15 cents. This pricing will begin as of today. Thank you for choosing as your fuel provider. I appreciate your business. Br'i.a.fv�l lle�►1.I ver�aw Brian Allen iverson SoCa Petroleum Plant Manager 45-242 Commerce Street Indio, CA 92201 b� � � ` -. ; � .�. � � � "Su�perior Service is Our Ultimate Product" 45-242 Commerce St • Indio CA 92201 • Tel: (�601 34?-3750 • Fax: (760) 342-7388 • TheSoCoGrouv.com 2008-8�1513:42 » 760 7739025 p 1/1 KEIVNY S'TRICKLAND, ING. FUE4S�LUdRICANTS PH. (760)34d-?031 F�X.(760);48-d77d SU-U2!HWY d6—P.O.BOX 998 COACNELLA,CA.91136 S/15/08 Attn;Carlos I Mel City of Palm Desert RE;08/09 fuel pricing Kenny Svickland inc.is pleased to be ablc to increase the discount to the City of Paim f)eaert an a�iditional .OS cents per gallon,for a total disc�unE of_1 S crnts p�r gaJlon. 'I�ank you for the oppo�Yuniry to do business with you,If you have uny qucstiau pleasc call. ' .. �`'l/i� With Regar'ds, Chuck Geyler (760)880-SiSS member of Lee Esc�ier �N Oil Co., Inc. �� ,�� Subsidiary of � w BECS OIL, INC. May 15,2008 City of Palm Desert City Cooperate 'Y'ard Velie Way Pa1m besert, ca. RE: Fuel Prices the 08-09 Fiscal Year. Lee Escher OiI Co., Inc., will deliver fuel to the City of palm I3esert, at a discount of$.15 per gallon off our posted dail�price, for the 2408-2009 Fiscal Yeaz. Additionally,the City is Exempt .�5436 per gailon,fiederal Excise Tax,r�vhich is reflected in the price quote below. We bid the fo]lowing prices. Unleaded Crasoline $ 3.89 Clear CARB ULSD Diesel Fuel $ 4.50 Red D�ed CARB ULSD Diesel Fuel $ 4.328 All prices shovvn include all applicable taxes. Prices are based on today's OPTS,UBD Rack Avg., and Coltoz� �tack. Prices may change daily,but the marlcup o�rer(JPIS will remain the same for the length of thc contract. Thanlc Yau, Lee Escher Oil Co.,Tnc. 85-119 Leoto I.znc • Coachclla,California 92236 Phone(760)39�2051 • Toll Free($00)6347332 • �'aa(760) 398-6528 wwwLeoco.com • www�cckoilinc.com �n• i n.._� ,-.,.,._ �_ r__..