HomeMy WebLinkAboutFY 2012/2013 Gas and Diesel FuelCITY 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 FY12/13 IN AN AMOUNT NOT TO
EXCEED $245,000
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 24, 2012
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 2012-13 for:
1. City's fleet and equipment in an amount not to exceed $145,000;
and
2. Desert Willow Maintenance Facility in an amount not to exceed
$100,000.
Funds are available in General Fund Account No. 110-4331-413-2170, Auto Fleet —
Supply Automotive Gas, and Account No. 520-4195-495-8031, Desert Willow
Maintenance Facility.
Staff Report
Purchase of Gas and Diesel Fuel from Specific Vendors
May 24, 2012
Page 2of2
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.
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 2012-13. 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.
Prepared By:
Cao6s ffornandez
Mainten#nce Services Manager
I Uibson, Director of Finance
M. Wohlmuth, City Manager
Mark qrqenwood, P. ,
Direct r bf Public Work,.
CITY COUNCIL ANION
APPROVED DF,NIF,D
RECEIVED OTHER.
MEETING D��E-1 � (�
AYF,S: �
NOES: 6
ABSENT:
ABSTAIN:
VERIFIED BY..--
Original on File with City Clemkls Office
Page 1 of 1
City of Palm Desert
Attn;
RE; Discount letter Fiscal Year a " 2012/2013
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 2012/2013.
Thank you
Chuck Gayler
Vice President
Kenny Strickland Inc.
760.398.2031 Office
760.880,5155 Cell
760.398.8778 Fax
fife:///C:lUsers/chernandez/AppData/Local/Microsoft/W indows/Temporary%20Internet%2... 4/24/2012
Superirv_r
.Service __
The Soso Inc.
Petroleum Distributors
Attention:
Carlos Hernandez
Company:
City of Palm Desert
Address:
74-705 42nd Avenue
Palm Desert, CA 92260
Phone:
760 340-5776
E-mail:
I chemandez ci of almdesert.or
RE: Fuel Pricing Discount
From:
Analiza Pitts
Title:
Plant Manager
Address:
45-242 Commerce Street
Indio, CA 92234
Mobile:
213 276-2914
E-mail:
I a itts thesoco rou .com
The SoCo Group will continue to supply the City of Palm Desert and Desert Willow with fuel deliveries at a 15 cents
discount per gallon off of our posted daily price for the fiscal year of 2012/2013.
Please let me know if you have any questions.
Thank you so much for your continued business.
Sincerely,
Analiza Pitts
Page 1 of 1
BECK OIL, INC.
PETROLEUM PRODUCTS • CARDLOCKS
April 24, 2012
City of Palm Desert
City Cooperate Yard
74705 42`1 Ave.
Palm Desert, ca.
RE: Fuel Prices the 12-13 Fiscal Year
Lee Escher Oil Co., Inc., will deliver fuel to the City of Palm Desert, at a discount of $.l 5
per gallon off our posted daily price, for the 2012-13 Fiscal Year. Additionally. the City
is Exempt .133 per gallon.
All prices shown include all applicable tales.
Prices are based on today's Colton Rack. Prices may change daily, but the discount will
remain the same..
"f hai lr�
eck Oil Inc.
16640 D STREET • VICTORVILLE, CALIFORNIA 92395 VICTORVILLE: (760) 24.5-4t91 • INVOKERN: (760) 377-4373