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Home My WebLink AboutFY 14-15 - VENDORS - 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 BECK OIL, INC., KENNY STRICKLAND, AND THE SOCO GROUP, INC., FOR FY14/15 IN AN AMOUNT NOT TO EXCEED $245,000 SUBMITTED BY: Mark Greenwood, P.E., Director of Pubiic Works VENDOR: Beck Oii, inc. 16640 D Street Victorville, CA 92395 Kenny Strickland 50-021 Hwy 86 Coachella, CA 92236 The SoCo Group Inc. 5962 Priestly Drive Carlsbad CA 92008 DATE: June 12, 2014 CONTENTS: Letters from Fuel Suppliers (3) Recommendation By Minute Motion, approve the purchase of gas and diesel fuel from Beck Oil, Inc., Kenny Strickland, and The SoCo Group, Inc., for FY14/15 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 12, 2014 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, Beck Oil, Inc., Kenny Strickland, and The SoCo Group Inc., have committed to provide the City with a 15-cent discount from the posted price, without any restrictions, for FY 14/15. 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: Depart t ead: -, a a dez Mark re nwood, P.E., in nance Services Manager Director Public Works CITY COUNCILA�TION APPROVED �� n�NTED P I Gibson, Director of Finance RECEIVED OTHER ME�TI �DATE -�� - ;:`Ap rov : AY�S: ti7/ /,Pl' � , NOF.S: G'Yl� A13SENT: AI3STAIN: ' V�;}dIF'(F;D 13Y: hn M. WOhlmuth, City Manager Or��;i�i�il on File with City ' erk's Office /bg BECK BECK OIL, INC. UO IL PF.TROLEU�-I PRODUCTS • CAKDLOCKS M�iy 6, 201� City of I'a1m Dcsert C'ity Corporate Yard 74705 42°`1 Avcnuc Palm Dcscrt, CA 92260 RE: Fucl !'riccs ?01�#-2015 Tiscal Ycar f3cck Oil, lnc. will dclivcr fucl to thc City of Palm Dcscrt at a discount of 5.15 per gallon ot�t�our postcd daily}�rice for thc 2014/2015 Fiscal Ycar. A�ltiiti��n��lly. thc City is Excmpt .183 per gall<�n FF:1'on gas��linc �tnd .24� 1�E1`on Dicscl tucl. Alt priccs sl�a��n include r�ll �ipplicablc taxcs. 1'riccs arc b�iscd oT� I��day's Colton Rack. ['riccs may chan�c claily but th�dis�uui�t �vi11 ren�ain the sa�nc. ,�)ltlllk y011, l�. ��"�J� im C'ombs Co�chclla Operations Managcr Bcck Oil fnc. JC/c�� 1664Q U STRE(:T•VIC1'ORVII,LF,CALIFOI2NIA 92395 VICTORVILLF,:t7bA)24g_4191 •INl'OKERN: (760)377-4373 EXCELLENCE... � Qur tradition & vision for tomorrow. Pf11WVS Tuesd�y,May 13,2014 � I City of Palm Desert 73-51Q Fred Wa�ing Drive Palm Desert,CA 92260-257$ . �. Kenny 5trickiand, Inc. wili provide a .15 cent discount per gallon coAcxst,�.n for any fuel purchases made in the fiscal year of 2014-2015 50021 Hw�r sb Coacx�.i.n,CA92236 The .15 cent discount wiil show as a separate line item in each �60)s9a-2aii invoice. HEMBT 1065.RAMONAST If you have any questions, please feel free#o call me at �T,cA� 760-398-2031 (9s1)65s�sisu �n�rs� 501 B.Baxiorrt st,vD Sincereiy, IIVIP'ERIAL,CA 92251 (76U)355-0329 �� /�:.�'� %Y(Q.�� BL�'r�8 Lourdes Aleman (760)265-5313 Office Manager BANNING 270 WEST LINCOLN BANNING,CA 92220 (951)922-8882 www.kennystrirdclend.00m �K�__ the S�C� � � Inc. �� Petroleum Distributors 4/22/2014 Attention: Carlos Hernandez From: Analiza Pitts Com an : Ci of Palm Desert Title: Plant Mana er Address: 74-705 42nd Avenue Address: 45-242 Commerce Street Palm Desert, CA 92260 Indio, CA 92234 Phone: 760 340-5776 Mobile: 760 795-5359 E-mail: chernandez ci of almdesert.or E-mail: a itts thesoco rou .com RE: Fuel Pricing Discount The SoCa 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 201412015. Please let me know if you have any questions. Thank you so much for your continued business. Sincerely, Analiza Pitts CONFIDEN7IALITY NOTICE Thfs page and any accompanying documents contain confidential informatlon intended for a spec'rfic iodividual and purpose. Th fs tele•copied infortnation is private and protected by law. If you are not the intended recipient(sJ,you are hereby notified that law strictly prohibits any disc losure,copying or distribuGon,or tfie taking on any action based on contents of fhis information. Page 1 of 1