HomeMy WebLinkAboutFY 09-10 - Gas & Diesel Fuel CITY OF PALM DESERT
PUBLIC WORKS
STAFF REPORT
REQUEST: Approve the Purchase of Gas and Diesel Fuel from Specific
Vendors in an Amount Not to Exceed $125,000 for Fiscal Year
2009-10
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
VENDOR: The SoCo Group, Inc.
5962 Priestly Drive
Carlsbad, CA 92008
Lee Escher Oil Co., Inc.
85-119 Avenue 50
Coachella, CA 92236
DATE: June 11, 2009
CONTENTS: Letters from Fuel Suppliers (3)
Recommendation:
By Minute Motion, approve the purchase of gas and diesel fuel from The
SoCo Group Inc., and Lee Escher Oil Co., Inc., for fiscal year 2009-10 in
an amount not to exceed $125,000
Funds for the purchase of gas and diesel fuel are budgeted in General Fund Account
No. 110-4331-413-2170.
Discussion:
A number of City fleet vehicles and equipment depend on gasoline and diesel fuels to
operate. 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 per gallon discount from the posted price (the price
the supplier charges the general public) for fiscal year 2008-09 from the three local fuel
suppliers: The SoCo Group, Inc., Kenny Strickland, and Lee Escher Oil Co., Inc.
Staff Report
Approve the Purchase of Gas and Diesel Fuel for FY 2009-10
Page2of2
June 11, 2009
For fiscal year 2009-10, Kenny Strickland has notified maintenance staff that they will
only provide a $.15 per gallon discount from the posted price if the City acquires fuel
from them for the entire fiscal year. Any fuel purchase made for less than a year will
only receive a $.10 per gallon discount. The other two suppliers, The SoCo Group,
Inc., and Lee Escher Oil Co., Inc., have committed to provide the City with a $.15 per
gallon discount from the posted price, without any restrictions, for fiscal year 2009-10.
In order to be fair with The SoCo Group, Inc., and Lee Escher Oil Co., Inc., the City will
request fuel delivery for a six-month time period from each fuel supplier.
Staff recommends that City Council, by Minute Motion, approve the purchase of gas
and diesel fuel from The SoCo Group, Inc., and Lee Escher Oil Co., Inc., for a period of
six months each for FY 2009-10 at a cost not to exceed $125,000.
Fiscallmpact: None.
Prepared By: Departm ad:
c�
C � ern dez Mark Gree ood, P.E.
aintenan Services Manager Director of Public Works
Approv .
Homer Croy Paul S. Gibson
ACM for D elopment Services Finance Director
CITY COUNCILA�TION
� APPROVED DEN�ED
John . ohlmuth RECEIVED OTHER
City M ager MEET G DATE
AYES: ' l(�'7 ��a ! �'
NOES:
ABSENI�:
ABSTAIN:
VERIFIED BY:
Original on File witL Ci lerk's Office
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ATTN: Mel Ramos From: ROII I�aiTlb (rlamb@socogroup.corn)
Wl�h; CITY OF P�1��ES�RT -V�1t.�: -The-�o�o Group
Phone: (760) 346-U611 Phone: (951} 634-�291
Fax: (} Fax: (619} 374-2223
5/13/2009 7:39 AM
Pages: 1 �otal (inc�uding cover)
Subject: Fuel Pricing Discount
In FolIow up to our conversation,The SoCo Group will supply the City of Palm Desert with fuel
detiveries at a 15 cent discount over standard pricing.
Please let us laiow if you have any questions.
Thanks..............Ron
Cc.Brian 7versan/Analiza Pitfs
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5962 P�iesf[Y Drive • Carlsbad CA 92QQ8 * TeE; {951)634-2291 • Fax;(6L9)374-2223 � TheSaGoGraul�.com
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City of Palrr�13esert
City Coogerate Yard
Velie Way
Pa1m DeSe�Ct,ca_
RE: Fu01 Prices tbe 09�20 Fiscal Year.
Lee Esch�.r. C7i1 Co.,�nc., wilJ de�iver:�ue1 to rhe City of Pal.n��77esezt.,�t a discount s�f. $.15
�er gal.�ozx off our pasted d$i.ly price,for tl�e 20�9-�0�10 Fiscai 'Xear. A.ddition.ally,the
City is Exer..rxpt.15735�e;r gal.to�.,Feclor�l.Excise Tax,whiclz is reflccted in th�e price
quotc below.
V�e bid.the fi,lIowiz�g prices.
Urileaded Gasoline � 2_��}�
C.l.ear CARB T,IT,S1�DiEs�l Facl $ 1.903
Rccl Dyed C.A.RB UL5�7 Diesel.Fuel � 1.723
A.II pric�s shown inalude all a�plicable taxes.
Prices a�e b�sed on toda,y-'s CO�,tpL]RaGIC.P,r,.ices rnay ch�.r�ge daily,but�h�dzscoun.t will
r��ain the sar.ne for the].ez��th of the�m�aet.
x'hank Yon,
Lee L;scher Qz� Co., Inc.
A bivisiort of Beck Oil inc_
l�eaturi[z�Ca.stml : Letbric�ii.�g Qils � Geeases • Speciaity Produ.ecs
n n•k�a:s 38 • 85-1 f�Ave�auC 54 • Coachcila,Calif�rnia 922.3G • Plaon�e(7G4)398-z051 • (800)63�-7332
Fax(7G0)398-0528
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