HomeMy WebLinkAboutFY 2013-14 - Gas and Diesel Fuel CITY 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 BECK
OIL, INC., FOR FY13/14 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
Beck Oil, Inc.
16640 D Street
Victorville, CA 92395
DATE: June 13, 2013
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 Beck Oil, Inc., for Fiscal
Year 2013-14 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
June 13, 2013
Page 2 of 2
Backqround
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 Beck Oil,
Inc., have committed to provide the City with a 15-cent discount from the posted price,
without any restrictions, for Fiscal Year 2013-14. 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 Analvsis
This is a necessary, on-going expense with no fiscal impact beyond the cost of fueling
City vehicles.
Prepared By: Depa ent ead:
C s e an ez Mark Gr e wood, P.E.,
Mainte nce Services Manager Director f ublic Works
CITY COUNCILA�I�N
APPROVED DENiED
RECEIVED � OTHER
Paul Gibson, Director of Finance , ��
MEET - r
AYES:
Ap al: NOES:
�ABSENI:
pBSTAIN:
VERIFIED BY:
n M. Wohlmuth, City Manager Original on File wit4 City erk's Office
Ig
. . �
EXCELLENCE...
�ur Tradition & Vision For Tomorrow.
��
City of Palm Desert
PNILLIPS ATTN: Carlos G. Hernandez
• � RE:Discount Letter Fiscal Year 2413/2014
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 of 2013/2014.
T'hank You,
Vahroline.
Chuck Gayler
coAcxELr.A Vice President
5pp21�twy s�, Kenny Strickland Inc.
COACHELLA,CA 92236 760-398-2031 Office
(��o)3�s-2�1 760-884-5155 Cetl
760-398-8778 Fax
HEMET chuck@kennystrickland.com
106 S.RAMONA ST
HEME'T,CA 925�3
(951)658-5180
IMPERIAL
501 E.BARIONI BLVD
IMl'ERIAL,CA 92251
(760)355-0332
BLYTHE
(760)265-53 t 3
SANNiNG
270 WEST LINCOLN
BANNING,CA 42220
(951)922-8882
www.lcennystrickland.com
S.�'v�c�e_--
The SOCO � � Inc. �'��"�
Petroleum Distributors
4/1/2013
Attention: Carlos Hernandez From: Analiza Pitts
Com an : Ci of Palm Desert Title: Plant Mana er
Address: 74-�05 42nd Avenue Address: 45-242 Commerce Street
Palm Desert, CA 92260 Indio, CA 92234
Phone: 760 340-5776 Mobile: 213 276-2914
E-mail: chernandez ci of almdesert.or E-mail: a itts thesoco rou .com
RE: Fuel Pricing Discount
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 2013/2014.
Please let me know if you have any questions.
Thank you so much for your continued business.
Sincerely,
Analiza Pitts
Page 1 of 1
HECK BECK 4IL, INC.
IL PFTRCILF.UM YRODUCTS • CARDI,OCKS
March 26, 2013
City c�f Palm Desert
City Cotparaie Yard
747U5 42"`�Avenue
P�lm Dcscrt,CA 922G0
RE: Fucl Prices 2013-2014 Fiscal Year
Beck Oil, Inc. ��ill dclivcr fuel to thc City oi'Palm I)csc�-t at a discc�unt of S.15 per�;allcm
off our pc�sted daily nrice for the 2013-2014 Fiscal Year. Additionally, the City is Exempt
.l 83 per gailon.
AII �)t'ICCS S�IOWII IIICIUCIC ali applicable taxes. Priccs are based <�n tc>ctay's Cvlton Rack.
Priccs may change daily l�ut the discount will remain the same.
T7�ank you,
J im Combs
Cc>achella Operatic�ns Managcr
�eck Oil Inc.
JC/cp
16G40 D STREE'1'•VICTORVII,I.F,CALIFORNIA 92395 VICTORVILLE: (760)245-4191•INYOKERN:(760)377-4373