HomeMy WebLinkAboutStaff Report 442-07TO:
FROM:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
CITY MANAGER
5
DEPARTMENT: PL~LIC WORKS
DATE:DECEMBER 10, 2007 CMR:442:07
SUBJECT:APPROVAL OF A PURCHASE ORDER WITH WESTERN STATES OIL
FOR A PERIOD OF UP TO 3 YEARS IN THE AMOUNT OF $944,000 PER
YEAR FOR A TOTAL AMOUNT NOT TO EXCEED $2,832,000 FOR
PROVISION OF AUTOMOTIVE FUEL
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute a purchase order with Western States Oil in the
amount of $944,000 for the provision of automotive fuel for a one year period from
December 17, 2007 to December 16, 2008; and
Authorize the City Manager or his designee to exercise the option to renew the purchase
order in the amount of $944,000 for the second and $944,000 third year, provided the
contractor is responsive to the City’s needs, and the quality of the contractor’s products and
service is acceptable during the first year of the contract.
DISCUSSION
Western States Oil will furnish unleaded ~oasoline, diesel, and biodiesel fuel, in accordance with
City specifications, and at the Oil Price Information Service (OPIS) San Jose "rack average"
price in effect on the date of delivery. Fuel will be delivered into tanks located at the Municipal
Services Center, Landfill, Golf Course, Fire Stations One, Two, and Four, Water Quality Control
Plant, Foothills Park, Civic Center, and several standby generator sites.
Summary of Bid Process
Bid Name/Number
Proposed Length of Purchase Order
Number of Bids Mailed to
Contractors
Total Days to Respond to Bid
Pre-Bid Meeting?
Number of Bids Received:
Bid Price Range
Automotive Fuel Services - RFQ #124799
12 months with option to renew
6
20
No
4*
$944,048 - $1,010,964"*
Bid summary provided in Attachment A. The Certification of Nondiscrimination is
Attachment B.
First year cost only, based on OPIS November 7, 2007 San Jose Rack Average fuel pricing.
CMR:442:07 Page 1 of 2
Staff has reviewed all bids submitted and recommends that the bid submitted by Western States
Oil be accepted and that Western States Oil be declared the lowest responsible bidder. The
change order amount of $94,400, which equals 10 percent of the total contract, is requested to
insure against the volatility of fuel prices, which are expected to increase during the term of the
purchase order.
Contractors bid delivery pricing and margin on!y. Fuel pricing is determined by the OPIS index,
which changes on a daily basis. The contract value of $944,000 was determined by multiplying
the delivered cost of the fuel (based on the November 7, 2007 OPIS index) by the estimated
quantity required at each site. The actual cost may be higher or !ower than the estimate of
$944,000, subject to fuel rnarket trends.
RESOURCE !2V~ACT
Funding in the amount of $500,000 has been budgeted for fuel costs in the FY 2007-08 Public
Works Department Equipment Management Operations and Maintenance budget. In order to
insure that adequate funding is available for this contract, the budget will be amended at mid-
year for an additional $444,000. This additional amount will be recovered from departments via
a corresponding increase in allocated charges.
POLICY IIVgPLiCATIONS
Authorization of the contract does not represent any change to the existing policy.
ENViRONr~WflENTAIL REVIEW
Contractor is required to comply with all federa!, state and local environmental iaws and
regulations applicable to *.he tr_anspo~ation and delivery of automotive fuels.
ATTAC~NT~
A~achment A: Bid Summary
Attachment B: Certmcatlon o~ Nondlsc~a~on
PREPARED BY:
CiTY MANAGER APPROVAL:
KEITH LAHAIE
Fleet Manager
GLENN ROBERTS
Director ....o~ Public Works
EMILY ~SON \
Assistant City Manager
C~v’fl~:44.2:07 Page 2 of 2
ATTACHMENT A
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ATTACHMENT B
CERTIFICATION OF NONDISCRIMINATION SECTION !1
Project:Automotive Fuel Delivery Services
Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Palo Alto in excess
of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in the performance of
this contract they will not discriminate in employment of any person because of race, skin color, gender, age,
religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height of such person; and further certify that they are in compliance with all Federal, State and local
directives and executive orders regarding nondiscrimination in employment.
Firm:Oi DATE:
Title of Officer Signir
Signature:
CITY OF PALO ALTO - RFQ 124799 PAGE 1 OF 1