HomeMy WebLinkAboutFY 2011-12 Purchase of Gas and DieselCITY 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
KENNY STRICKLAND, THE SOCO GROUP, INC., AND LEE
ESCHER OIL CO., INC., FOR FISCAL YEAR 2011/2012 IN AN
AMOUNT NOT TO EXCEED $225,000
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
VENDOR: Kenny Strickland
50-021 Hwy 86
Coachella, CA 92236
The SoCo Group Inc.
5962 Priestly Drive
Carlsbad CA 92008
Lee Escher Oil Co. Inc.
85-119 Avenue 50
Coachella, CA 92236
DATE: May 26, 2011
CONTENTS: Letters from Fuel Suppliers (3)
Recommendation
By Minute Motion, approve the purchase of gas and diesel fuel from
Kenny Strickland, The SoCo Group Inc., and Lee Escher Oil Co. Inc., for
Fiscal Year 2011-12 for:
1. City's fleet and equipment in an amount not to exceed $135,000; and
2. Desert Willow Maintenance Facility in an amount not to exceed
$90,000.
Funds for the purchase of gas and diesel fuel for the City's fleet and equipment are
budgeted in Genera► Fund Account No. 110-4331-413-2170, Auto Fleet —Supply
Automotive Gas; and Account No. 520-4195-495-8031 for Desert Willow Maintenance
Facility.
Staff Report
Purchase of Gas and Diesel Fuel from Specific Vendors
May 26, 2011
Page 2 of 2
Background
A number of City fleet vehicles and equipment depend on gasoline and diesel fuels to
achieve daily operations for the City and Desert Willow. 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-
cent discount from the posted price (the price the supplier charges the general public)
from the three local fuel suppliers for Fiscal Year 2011/12.
The three local fuel suppliers, Kenny Strickland, The SoCo Group Inc., and Lee Escher
Oil Co. Inc., have committed to provide the City with a 15-cent discount from the posted
price, without any restrictions, for Fiscal Year 2011-12. In order to be fair, the City will
request fuel delivery for a four -month time period from each fuel supplier for both
locations.
Fiscal Analysis
This is a necessary, on -going expense with no fiscal impact beyond the cost of fueling
City vehicles.
Prepare0
i
Services Manager
Paul Gibson, Director of Finance
Pe
M. Wohlmuth, City Manager
Depart n d:
- iW4 - ak
Mark Green ood, P.E.,
Director of Public Works
CITY COUNCILAF'ION
APPROVED ++// DENWD
RECEIVED OTHER
MEETI G D
AYES:
NOES:
ABSENT:
ABSTAIN: 6
VERIFIED BY: '
Original on Fite with
Office
May 03 11 01:25p Chuck 760-398-8778 p.1
Page I of 1
Chuck Gayler
From: "Chuck Gaylee <chuck@a kennystrickland.com>
Date: Tuesday; May 03, 2011 1:18 PM
To: <chuck@a kennystrickland.com>
City of Palm Desert
Attn; Daniel
RE; Discount letter Fiscal Year — 2011/2012
Kenny strickland inc. will give to the City of Palm Desert a .15 cent per gallon discount off of
posted price on all gas and diesel fuel purchased during the fiscal year 2011/2012.
Thank you
Chuck Gayler
Vice President
Kenny Strickland Inc.
760.398.2031 Office
760.880.5155 Cell
760.398.8778 Fax
5/3/2011
BECH Ondq INC.
PETROLEUM PRODUCTS - CARDLOCKS
April 21, 2011
City of Palm Desert
City Cooperate Yard
74705 42"d Ave.
Palm Desert, ca.
RE: Fuel Prices the 11-12 Fiscal Year
Lee Escher Oil Co., Inc., will deliver fuel to the City of Palm Desert, at a discount of $.15
per gallon off our posted daily price, for the 2011-12 Fiscal Year. Additionally, the City
is Exempt .138 per gallon.
All prices shown include all applicable taxes.
Prices are based on today's Colton Rack. Prices may change daily, but the discount will
remain the same..
Thank ou,
eck Oi Inc.
16W D STREET • VICTORVILLE, CALIFORNIA 92395 VICTORVILLF.: (760) 245-4191 • INYOKERN: (760) 377-4373
To: Daniel Page 1 of 1 2011-04-20 11:56:54 PDT 17606921492 From: Analiza Pitts
TIC: SUN Inc.
Petroleum Distributors
To: City of Palni Desert
Attn: Daniel Lopez
Fax: 760.773.9025
Date% Time: 4. 20.-11 1 I :52AM
RE: Fuel Pricing Discount
From: Analiza Pitts
45-242 Commerce St.
Indio, CA 92201
Mobile: 213.276.2914
Toll Free: 800.989.3278
E-Fax: 760.692,1.492
www.socogroLlp.com
The SoCo Group win supply the City of Palm Desert N ith fuel deliveries at a 15 cent discount per
gallon off 0f our posted daily price for the 2011'2012 fiscal year.
Please let me know if you have any questions.
Thank you for your continued business.
Analiza Pitts
"Superior Service is Our Ultimate Product"
45-242 Commerce St • Indio CA 92201 • Tel: (760) 347-3750 • Fax: (760) 342-7388 • TheSoCoGroup.com