HomeMy WebLinkAboutStaff Report 8399
City of Palo Alto (ID # 8399)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/16/2017
City of Palo Alto Page 1
Summary Title: General Services for Fuel Contract
Title: Approve and Authorize the City Manager to Execute a 5-year General
Services Agreement With Valley Oil Company in an Amount Not-to-Exceed
$3,256,164 for the Purchase of Unleaded and Diesel Fuels to Supply the City's
Fleet
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his
designee to execute a General Services Agreement in an amount not to exceed
$3,256,164 with Valley Oil Company (Attachment A) for the purchase of unleaded
and diesel fuels to supply the City’s fleet for a term of five years effective October
16, 2017; including a total of $500,124 for AB 398 price increases for the 5-year
contract term, $29,380 annually for SB 1 price increases, $17,252 annually for
Golf Course operations, and $53,899 annually for fluctuating fuel costs; subject to
the annual appropriation of funds.
Background
On March 24, 2014, Council approved a three-year contract for the provision of
automotive fuel from March 24, 2014 to March 24, 2017. Amendment One to the
contract extended the term end date from March 24, 2017 to September 24,
2017, extended for six months per PAMC 2.30.280(b)(2).
Assembly Bill 398 was approved in July 2017 to amend the California Global
Warming Solutions Act of 2006 to take action on climate change and help fund
the high-speed rail project. The bill will raise gas prices 63 cents a gallon by 2021,
and per Legislative Council, Chapter 135, the bill is to take effect immediately as
an urgency statute.
City of Palo Alto Page 2
Senate Bill 1 was approved in April 2017 to fund transportation projects, including
road and bridge repairs. SB 1 will increase unleaded fuel 12 cents per gallon,
diesel fuel 20 cents per gallon, and diesel sales tax by 4% effective November 1,
2017.
The City used 230K, 216K and 198K gallons of fuel (unleaded and diesel) in Fiscal
Years 2015, 2016 and 2017, respectively. Other than the temporary closure of
operations at the Palo Alto Golf Course due to construction in Fiscal Year 2017,
reductions in fuel consumption have been attributed to the annual increase in
Capital Improvement Program replacements of the City’s aging fleet with newer,
more fuel-efficient vehicles/equipment.
The actual cost of fuel fluctuates daily and is based on the Oil Price Information
Service (OPIS) rate from the San Jose terminal.
Discussion
Approval of the proposed agreement will establish a new contract for fuel supply.
Staff recommends a contract amount of $3,256,164 over 5 years based on the
198,461 gallons of fuel purchased in Fiscal Year 2017, with additional funding for
anticipated increases in fuel costs resulting from increased fuel taxes under AB
398 and SB 1, and the re-opening of the golf course, and a contingency for
fluctuations in market price and/or volume needed.
The annual base fuel cost of $450,677 was derived using the OPIS rack rate of
$2.0698 for unleaded, and $2.0375 for diesel as of September 1, 2017 (the day in
which bids were received), plus taxes and delivery fees, multiplied by the total
purchased gallons for each fuel type.
The additional $500,124 for AB 398 is a total incremental increase that reaches its
full price increase by the third year of this contract, adding $41,677 to the first
year, $83,354 to the second year and capping at an increased cost of $125,031
per year for years three, four, and five. AB 398 adds 21 cents per gallon each year
for three years, up to the third year when it caps at a 63 cent per gallon increase
and remains for future years.
City of Palo Alto Page 3
The annual amount of $29,380 is for SB 1 and $17,252 is for golf course
operations, which is scheduled to re-open in November 2017 adding roughly
8,000 gallons per year to the purchase total, while a contingency of 10% of the
first year’s total price is $269,495 for the 5-year contract.
The first-year contract amount of $592,885 was determined by multiplying the
number of gallons purchased in Fiscal Year 2017 by the current cost of fuel,
adding delivery charges and appropriate taxes, then adding AB 398, SB1, 8,000
gallons at the golf course, and a contingency for fluctuations. The contingency
amount is based on the first year amount only, and does not increase each year,
as the contingency should not be applied to each year’s fuel cost or fuel tax
increases due to the assembly/senate bills.
The table below shows the calculation for each contract year.
Base Cost Golf AB 398 SB1 Contingency Total
1st
Year
$450,677 $17,252 $41,677 $29,380 $53,899 $592,885
2nd
Year
$450,677 $17,252 $83,354 $29,380 $53,899 $634,562
3rd
Year
$450,677 $17,252 $125,031 $29,380 $53,899 $676,239
4th
Year
$450,677 $17,252 $125,031 $29,380 $53,899 $676,239
5th
Year
$450,677 $17,252 $125,031 $29,380 $53,899 $676,239
5 Year Contract Total $3,256,164
Staff will continue to explore opportunities to reduce fuel consumption.
Bidding and Selection Process
A Request for Quotation (RFQ) to Supply Unleaded and Diesel Fuel to 6 City
Locations was issued on August 17, 2017. Bids were received from six qualified
vendors on September 1, 2017.
Since all bidders used the same fuel cost, the only variable in these bids was the
delivery charges, bidders were instructed to provide delivery costs to each of the
City of Palo Alto Page 4
six locations identified in the RFQ. Delivery costs are summarized in Attachment
B. The cost of fuel plus delivery, without taxes, resulted in proposals ranging from
$412,342 to $436,315.
Staff has reviewed all bids submitted and recommends that the bid submitted by
Valley Oil Company be accepted and that Valley Oil Company be declared the
lowest responsible bidder. Staff has checked references supplied by the vendor
for current contracts in place with three other agencies and found no complaints.
Resource Impact
Funding for this contract is included in the FY 2018 Vehicle Replacement Fund
operating budget with subsequent years subject to Council’s approval of each
fiscal year’s budget.
Policy Implications
Authorization of this agreement does not represent a change to any existing
policy.
Environmental Review
Approval of the fuel supply contract is not a project subject to review under the
California Environmental Quality Act (CEQA). The purchase of supplies is a
continuing administrative activity which is excluded from the definition of a
project under CEQA Guidelines Section 15378(b)(2).
Attachments:
Attachment A - Contract
Attachment B - Bid Summary
Attachment A
1
City of Palo Alto General Services Agreement Rev. April 27, 2016
CITY OF PALO ALTO CONTRACT NO. C18169635
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 9th day of OCTOBER, 2017, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and VALLEY OIL COMPANY, a California Corporation, located at 785 Yuba Dr.
Mountain View, Ca 94041, Telephone Number: 650.967.2253 (“CONTRACTOR”). In
consideration of their mutual covenants, the parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“A-1” – On-Call Task Order (Optional)
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
“E” - Performance and/or Payment Bond
“F” - Liquidated Damages (Optional)
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from October 9, 2017to October 8, 2022 inclusive,
subject to the provisions of Sections Q and V of the General Terms and
Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based
upon the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the
Services and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
Attachment A
2
City of Palo Alto General Services Agreement Rev. April 27, 2016
OR
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of three million
two hundred fifty-six thousand one hundred sixty-four dollars
($3,256,164).
CONTRACTOR agrees that it can perform the Services for an amount not to
exceed the total maximum compensation set forth above. Any hours worked or
services performed by CONTRACTOR for which payment would result in a total
exceeding the maximum amount of compensation set forth above for
performance of the Services shall be at no cost to CITY.
CITY has set aside the sum of two hundred sixty-nine thousand four
hundred ninety-five ($269,495) for Additional Services. CONTRACTOR
shall provide Additional Services only by advanced, written authorization
from the City Manager or designee. CONTRACTOR, at the CITY’s request,
shall submit a detailed written proposal including a description of the
scope of services, schedule, level of effort, and CONTRACTOR’s proposed
maximum compensation, including reimbursable expense, for such
services. Compensation shall be based on the hourly rates set forth
above or in Exhibit C (whichever is applicable), or if such rates are not
applicable, a negotiated lump sum. CITY shall not authorize and
CONTRACTOR shall not perform any Additional Services for which
payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements
and restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in
section 5 above, shall be adjusted by a percentage equal to the change in
the Consumer Price Index for Urban Wage Earners and Clerical Workers
for the San Francisco-Oakland- San Jose area, published by the United
States Department of Labor Statistics (CPI) which is published most
immediately preceding the commencement of the applicable Additional
Attachment A
3
City of Palo Alto General Services Agreement Rev. April 27, 2016
Term, which shall be compared with the CPI published most immediately
preceding the commencement date of the then expiring term.
Notwithstanding the foregoing, in no event shall CONTRACTOR’s
compensation rates be increased by an amount exceeding five percent of
the rates effective during the immediately preceding term. Any
adjustment to CONTRACTOR’s compensation rates shall be reflected in a
written amendment to this Agreement.
7. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: Danitra Bahlman, Dept.: Public Works, Equipment Management
Division, Telephone: 650-496-5920. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed
during the invoice period and are subject to verification by CITY. CITY shall pay
the undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 7 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the
expertise and qualifications to complete the services described in Section 1 of
this Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and
certifications. CONTRACTOR shall perform all work in accordance with generally
accepted business practices and performance standards of the industry,
including all federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required
under this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written
Attachment A
4
City of Palo Alto General Services Agreement Rev. April 27, 2016
consent of CITY. CONTRACTOR shall be solely responsible for directing the work
of approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all
taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the
Services comply with all applicable federal, state and local laws, ordinances,
regulations, and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set
forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within
the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR
shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such
withholding upon CONTRACTOR’s request. When the grounds described above
are removed, payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement.
CONTRACTOR expressly warrants that all materials, goods and equipment
provided by CONTRACTOR under this Agreement shall be fit for the particular
purpose intended, shall be free from defects, and shall conform to the
requirements of this Agreement. CONTRACTOR agrees to promptly replace or
correct any material or service not in compliance with these warranties,
including incomplete, inaccurate, or defective material or service, at no further
cost to CITY. The warranties set forth in this section shall be in effect for a period
Attachment A
5
City of Palo Alto General Services Agreement Rev. April 27, 2016
of one year from completion of the Services and shall survive the completion of
the Services or termination of this Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles
for at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of any of its
rights under this Agreement.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of
A-:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The
Risk Manager must approve deductibles and self-insured retentions. In addition,
all policies, endorsements, certificates and/or binders are subject to approval by
the Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an
endorsement stating that the insurance is primary coverage and will not be
canceled or materially reduced in coverage or limits until after providing 30 days
prior written notice of the cancellation or modification to the Risk Manager.
CONTRACTOR shall provide certificates of such policies or other evidence of
coverage satisfactory to the Risk Manager, together with the required
endorsements and evidence of payment of premiums, to CITY concurrently with
the execution of this Agreement and shall throughout the term of this
Agreement provide current certificates evidencing the required insurance
coverages and endorsements to the Risk Manager. CONTRACTOR shall include
all subcontractors as insured under its policies or shall obtain and provide to CITY
Attachment A
6
City of Palo Alto General Services Agreement Rev. April 27, 2016
separate certificates and endorsements for each subcontractor that meet all the
requirements of this section. The procuring of such required policies of insurance
shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY
under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section M relating to insurance, CONTRACTOR shall
indemnify, defend and hold harmless CITY, its Council members, officers,
employees and agents from and against any and all demands, claims, injuries,
losses, or liabilities of any nature, including death or injury to any person,
property damage or any other loss and including without limitation all damages,
penalties, fines and judgments, associated investigation and administrative
expenses and defense costs, including, but not limited to reasonable attorney’s
fees, courts costs and costs of alternative dispute resolution), arising out of, or
resulting in any way from or in connection with the performance of this
Agreement. CONTRACTOR’s obligations under this Section apply regardless of
whether or not a liability is caused or contributed to by any negligent (passive or
active) act or omission of CITY, except that CONTRACTOR shall not be obligated
to indemnify for liability arising from the sole negligence or willful misconduct of
CITY. The acceptance of the Services by CITY shall not operate as a waiver of the
right of indemnification. The provisions of this Section survive the completion of
the Services or termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it
shall not discriminate in the employment of any person because of the race, skin
color, gender, age, religion, disability, national origin, ancestry, sexual
orientation, housing status, marital status, familial status, weight or height of
such person. CONTRACTOR acknowledges that it has read and understands the
provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to
Nondiscrimination Requirements and the penalties for violation thereof, and
agrees to meet all requirements of Section 2.30.510 pertaining to
nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of
California which require every employer to be insured against liability for
workers' compensation or to undertake self-insurance in accordance with the
provisions of that Code, and certifies that it will comply with such provisions, as
applicable, before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Attachment A
7
City of Palo Alto General Services Agreement Rev. April 27, 2016
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination if for
cause, CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material
obligations under this Agreement. Upon termination, CONTRACTOR shall
immediately deliver to the City Manager any and all copies of studies, sketches,
drawings, computations, and other material or products, whether or not
completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection
with this Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their
successors and assigns to all covenants of this Agreement. This Agreement shall
not be assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the
written consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree
with the performance of this Contract. CONTRACTOR further covenants that, in
the performance of this Contract, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY Officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and
that no person associated with CONTRACTOR has any interest, direct or indirect,
which could conflict with the faithful performance of this Contract.
CONTRACTOR agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This contract shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the
entire agreement between the parties with respect to the services that may be
the subject of this Agreement. Any variance in the exhibits does not affect the
validity of the Agreement and the Agreement itself controls over any conflicting
provisions in the exhibits. This Agreement supersedes all prior agreements,
representations, statements, negotiations and undertakings whether oral or
written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This
Agreement will terminate without any penalty (a) at the end of any fiscal year in
Attachment A
8
City of Palo Alto General Services Agreement Rev. April 27, 2016
the event that funds are not appropriated for the following fiscal year, or (b) at
any time within a fiscal year in the event that funds are only appropriated for a
portion of the fiscal year and funds for this Contract are no longer available. This
Section shall take precedence in the event of a conflict with any other covenant,
term, condition, or provision of this Contract.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling
or composting waste. In particular, CONTRACTOR shall comply with the
following zero waste requirements:
All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer
content paper, unless otherwise approved by CITY’s Project Manager.
Any submitted materials printed by a professional printing company shall
be a minimum of 30% or greater post-consumer material and printed
with vegetable based inks.
Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including, but
not limited to, Extended Producer Responsibility requirements for
products and packaging. A copy of this policy is on file at the Purchasing
Division’s office.
Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so
on behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. Contractor is not required to pay
prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the contract is not a public works contract, if contract
does not include a public works construction project of more than $25,000, or
Attachment A
9
City of Palo Alto General Services Agreement Rev. April 27, 2016
the contract does not include a public works alteration, demolition, repair, or
maintenance (collectively, ‘improvement’) project of more than $15,000.
OR
Contractor is required to pay general prevailing wages as defined in Subchapter
3, Title 8 of the California Code of Regulations and Section 16000 et seq. and
Section 1773.1 of the California Labor Code. Pursuant to the provisions of
Section 1773 of the Labor Code of the State of California, the City Council has
obtained the general prevailing rate of per diem wages and the general rate for
holiday and overtime work in this locality for each craft, classification, or type of
worker needed to execute the contract for this Project from the Director of the
Department of Industrial Relations (“DIR”). Copies of these rates may be
obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor
shall provide a copy of prevailing wage rates to any staff or subcontractor hired,
and shall pay the adopted prevailing wage rates as a minimum. Contractor shall
comply with the provisions of all sections, including, but not limited to, Sections
1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to
prevailing wages.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that
CONTRACTOR and its listed subcontractors are registered with the California
Department of Industrial Relations (“DIR”) to perform public work, subject to
limited exceptions. City requires CONTRACTOR and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract
Code, or engage in the performance of any contract for public work, as defined
in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of
the Business and Professions Code or Section 10164 or 20103.5 of the Public
Contract Code, provided the contractor is registered to perform public work
pursuant to Section 1725.5 at the time the contract is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that
CONTRCATOR is required to post all job site notices prescribed by law or
Attachment A
10
City of Palo Alto General Services Agreement Rev. April 27, 2016
regulation and CONTRACTOR is subject to SB 854-compliance monitoring and
enforcement by DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its
listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR
and its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within
the 10-day period, then CONTRACTOR and its listed subcontractors shall be
subject to a penalty of one hundred dollars ($100.00) per calendar day, or
portion thereof, for each worker, and CITY shall withhold the sum total of
penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
Attachment A
11
City of Palo Alto General Services Agreement Rev. April 27, 2016
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
Ed Shikada for James Keene
APPROVED AS TO FORM:
VALLEY OIL COMPANY
Officer 1
Officer 2 (Required for Corp. or LLC)
Attachment A
12
City of Palo Alto General Services Agreement Rev. April 27, 2016
EXHIBIT A
SCOPE OF SERVICES
Valley Oil Company will furnish and deliver diesel fuel and unleaded fuel to six (6) fuel sites
located throughout the City of Palo Alto. These sites, along with tank sizes and estimated
annual usage are shown on Table 1 of this Exhibit A.
1. PRODUCT AVAILABILITY
Valley Oil Company’s inventory must be of sufficient size and variety to offer delivery of
all products, 7 days a week, with 24-hour notice by the City.
Since the continuous operation of the City’s vehicle and equipment fleet is important
and sometimes of an emergency nature, it is necessary that Valley Oil Company be in a
position to render prompt support. Emergency fueling may be requested for the six
listed locations and others throughout the City, and will require same day delivery.
2. ORDERING AND DELIVERY
a. General. The City of Palo Alto requires ordering and delivery of fuel for six (6) fuel
site locations, as indicated in Table 1 of this Exhibit A and in Exhibit C. Tank sizes
and estimated delivery frequencies for all sites are shown in Table 1 below.
b. Site 1. Bulk (500 gallons or more) deliveries are required for site 1. These deliveries
are commonly referred to as “tank and trailer loads.” Three underground tanks (2
for diesel and 1 for gasoline) are installed at this site.
c. Location of Tanks. Fuel sites 2 and 3 listed above, have aboveground tanks. The
remaining sites (1, 4, 5, 6) have underground tanks.
d. Non-bulk deliveries for sites other than site 1. Non-bulk (less than 500 gallons)
deliveries will be required for sites 2, 3, 4, 5 and 6.
e. As-needed orders – 24 hours’ notice. City will generally order fuel for sites 1, 2, 3,
5, and 6 on an as-needed basis, with 24-hours advance notice. Valley Oil Company
shall accept City’s fuel orders and deliver the requested amount of fuel to the
identified fuel site within 24 hours of the City’s placement of the order.
f. Site 4 – delivery frequency. Valley Oil Company shall make fuel deliveries to site 4
every Monday (regardless of tank levels), unless the weekly delivery is cancelled by
City. For any City holidays falling on a Monday, the deliveries will take place the
following day (Tuesday). Site 4 will commonly require additional “as needed”
deliveries, with 24-hours advance notice. Valley Oil Company shall fulfill City’s as-
needed orders within 24 hours of City’s placement of the order.
g. Timing of deliveries. Deliveries are to be made to all sites between 9:00 AM and
2:00 PM, Monday through Friday, except in case of emergency.
Attachment A
13
City of Palo Alto General Services Agreement Rev. April 27, 2016
3. SPILL CLEANUP
Valley Oil Company must supply an action plan for spill clean-up. Valley Oil Company
shall submit this plan with the City’s Equipment Management Division within one (1)
week of contract award for City’s review and approval.
All drivers for Valley Oil Company must carry equipment to cleanup any spills of five (5)
gallons or less. Valley Oil Company shall report all spills to a City Equipment
Management Division representative immediately, following the cleanup.
Drivers must be familiar with each fuel site, and the monitoring equipment (generally
Veeder-Root TLS-300 units) that is installed there.
4. SPECIFICATIONS
Unleaded Gasoline
All sites: 87 octane, MTBE based
Diesel Fuel
All sites: Red dyed #2, California Air Resources Board (CARB)
rated for combined on/off-highway use.
Diesel Fuel
All sites: *Renewable, Red dyed #2, California Air Resources
Board (CARB) rated for combined on/off-highway use.
*The City currently does not use renewable diesel fuel and may or may not decide to use
renewable diesel fuel in the future. However, should City decide to use renewable diesel
fuel, Valley Oil Company shall supply it upon request.
5. DELIVERY RECEIPTS, INVOICING & PAYMENT
a. Delivery Receipts. Valley Oil Company shall send delivery receipts for all sites via
EMAIL to danitra.bahlman@cityofpaloalto.org and david.andel@cityofpaloalto.org
of the City’s Equipment Management Division offices, on the date of delivery. The
fuel site location must be noted on the delivery receipt.
b. Invoicing. Invoices shall be submitted in accordance with Section 7 of this
Agreement. Invoices shall include all applicable federal, state and local taxes,
import duties, commissions, or other charges. The fuel site location must be noted
on the invoice.
c. OPIS Reports. Valley Oil Company must also send the OPIS report every morning via
email to danitra.bahlman@cityofpaloalto.org and david.andel@cityofpaloalto.org.
Attachment A
14
City of Palo Alto General Services Agreement Rev. April 27, 2016
d. PAYMENT TERMS: City of Palo Alto’s Payment terms for this contract will be: N30
Sales tax rate for the City of Palo Alto is 9.00%.
TABLE 1
Fuel Site
Unleaded Gasoline
Diesel Fuel
Nr
Name/Address
Tank Size
12-Month
Usage1
Deliveries
per year1
Tank Size
12-Month
Usage1
Deliveries
per year1
1
Municipal Services Center
3201 East Bayshore Road
15,000
92,500
18
15,000 and
5,000
43,000
36
2
Golf Course
1875 Embarcadero Road
1,000
600
1
1,000
150
1
3
Foothills Park3
3300 Page Mill Road
250
2,300
14
500
750
2
4
Fire Station #1 (University Park)
301 Alma Street
1,000
30,000
66
1,000
8,700
32
5
Fire Station #2 (Mayfield)
2675 Hanover Street
1,000
7,400
21
1,000
9,600
23
6
Fire Station #4 (Mitchell Park)
3600 Middlefield Road
1,000
440
2
1,000
3,100
8
Total for all Locations
19,250
133,240
122
24,500
65,300
102
Note: Above fuel usage numbers are taken from previous 12-month period (July 1, 2016 – June 30,
2017) and are provided for illustrative purposes. Annual fuel requirements during the term of this
Agreement may vary.
Attachment A
15
City of Palo Alto General Services Agreement Rev. April 27, 2016
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services according to the following schedule:
Site 4: Valley Oil Company shall make fuel deliveries to site 4 every Monday (regardless of tank
levels), unless the weekly delivery is cancelled by City. For any City holidays falling on a Monday,
the deliveries will take place the following day (Tuesday). Site 4 will commonly require
additional “as needed” deliveries, with 24-hours advance notice. Valley Oil Company shall fulfill
City’s as-needed orders within 24 hours of City’s placement of the order.
Sites 1, 2, 3, 5, 6: Valley Oil Company shall accept City’s fuel orders and deliver the requested
amount of fuel to the identified fuel site within 24 hours of the City’s placement of the order.
Attachment A
16
City of Palo Alto General Services Agreement Rev. April 27, 2016
EXHIBIT C
SCHEDULE OF FEES
Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to CONTRACTOR, including both payment for services and reimbursable
expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services
provided or hours worked for which payment would result in a total exceeding the maximum amount of
compensation set forth herein shall be at no cost to CITY.
PRICING
Pricing for unleaded and diesel will be at the cost per gallon using the OPIS Lowest Daily
Terminal Price at the San Jose, California fueling terminal, and will include delivery at
the per gallon rates specified per site and per fuel type in the table below.
Pricing for renewable diesel will be at the cost per gallon using the OPIS Lowest Daily
Terminal Price at the San Francisco, California fueling terminal, and will include delivery
at the per gallon rates specified per site and per fuel type in the table below.
Fuel price will directly correspond to the OPIS rate referenced above. Delivery rates will
remain fixed for the term of the Agreement.
RATE SCHEDULE – DELIVERY SCHEDULE PER FUEL SITE
Fuel Site
Unleaded Fuel
Price Per Gallon
Diesel Fuel Price
Per Gallon
Renewable
Diesel Fuel
Price Per Gallon
Delivery price of gasoline and diesel fuel per site is as follows:
Over Daily Terminal Price as per specifications
Nr
Name/Address
1
Municipal Services Center
3201 East Bayshore Road
$.005
$.005
$.039
2
Golf Course
1875 Embarcadero Road
$.045
$.045
$.089
Attachment A
17
City of Palo Alto General Services Agreement Rev. April 27, 2016
Fuel Site
Unleaded Fuel
Price Per Gallon
Diesel Fuel Price
Per Gallon
Renewable
Diesel Fuel
Price Per Gallon
3 Foothills Park
3300 Page Mill Road
$.045 $.045 $.089
4
Fire Station #1 (University Park)
301 Alma Street
$.045
$.045
$.089
5
Fire Station #2 (Mayfield)
2675 Hanover Street
$.045
$.045
$.089
6
Fire Station #4 (Mitchell Park)
3600 Middlefield Road
$.045
$.045
$.089
Notice required for delivery (hours): 24 Hours
Attachment A
18
City of Palo Alto General Services Agreement Rev. April 27, 2016
EXHIBIT D INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE
SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES
WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY
YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE
BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000
NO
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT
ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE
INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE
IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
Attachment A
19
City of Palo Alto General Services Agreement Rev. April 27, 2016
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONTRACTOR SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE CONTRACTOR SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL:
https://www.planetbids.com/portal/portal.cfm?CompanyID=25569
OR
http://www.cityofpaloalto.org/gov/depts/asd/planet_bids_how_to.asp
Attachment B
Bid Summary
BIDDERS: VALLEY OIL GOLDEN GATE WESTERN STATES
Fuel Site
Unleaded Diesel Unleaded Diesel Unleaded Diesel
Fuel Price Per Gallon
Municipal Services Center
3201 East Bayshore Road 0.005 0.005 0.0212 0.0276 0.01875 0.029
Golf Course
1875 Embarcadero Road 0.045 0.045 0.14 0.14 0.14375 0.13375
Foothills Park
3300 Page Mill Road 0.045 0.045 0.20 0.20 0.14375 0.13375
Fire Station #1
(University Park)
301 Alma Street 0.045 0.045 0.12 0.14 0.14375 0.13375
Fire Station #2 (Mayfield)
2675 Hanover Street 0.045 0.045 0.16 0.16 0.14375 0.13375
Fire Station #4
(Mitchell Park)
3600 Middlefield Road 0.045 0.045 0.16 0.16 0.14375 0.13375
Attachment B
Bid Summary
BIDDERS: MANSFIELD SOUTHERN COUNTIES MERRIMAC
Fuel Site
Unleaded Diesel Unleaded Diesel Unleaded Diesel
Fuel Price Per Gallon
Municipal Services Center
3201 East Bayshore Road 0.0308 0.0338 0.0406 0.0365 -.062 0.00
Golf Course
1875 Embarcadero Road 0.3818 0.3421 0.14 0.14 0.35 0.35
Foothills Park
3300 Page Mill Road 0.3818 0.3421 0.30 0.30 0.35 0.35
Fire Station #1
(University Park)
301 Alma Street 0.3818 0.3421 0.14 0.14 0.35 0.35
Fire Station #2 (Mayfield)
2675 Hanover Street 0.3818 0.3421 0.14 0.14 0.35 0.35
Fire Station #4
(Mitchell Park)
3600 Middlefield Road 0.3818 0.3421 0.14 0.14 0.35 0.35
*No bid from Mansfield, Southern Counties, or Merrimac for Renewable Diesel.
Attachment B
Bid Summary
BIDDERS: VALLEY OIL GOLDEN GATE WESTERN STATES
Fuel Site
Renewable
Diesel
Renewable
Diesel
Renewable
Diesel
Fuel Price Per Gallon
Municipal Services Center
3201 East Bayshore Road 0.039 0.0076 0.005
Golf Course
1875 Embarcadero Road 0.089 0.10 0.125
Foothills Park
3300 Page Mill Road 0.089 0.17 0.125
Fire Station #1
(University Park)
301 Alma Street 0.089 0.12 0.125
Fire Station #2 (Mayfield)
2675 Hanover Street 0.089 0.12 0.125
Fire Station #4
(Mitchell Park)
3600 Middlefield Road 0.089 0.12 0.125
Attachment B
BIDDERS: VALLEY OIL GOLDEN GATE
Fuel Site Unl. Diesel Unl. Diesel
Estimate Annual Fuel Cost
MSC $191,918 $87,827.50 $193,417.50 $88,799.30
Golf
Course
$1,268.88 $312.38 $1325.88 $326.63
Foothills
Park
$4,864.04 $1,561.88 $5220.54 $1678.13
Fire Station
#1
$63,444 $18,117.75 $62,694 $18,944.25
Fire Station
#2
$15,649.52 $19,992 $16,500.52 $21,096
Fire Station
#4
$930.51 $6,455.75 $981.11 $6386.65
Total: $278,074.95 $134,267.26 $280,139.55 $137,230.96
BIDDERS: WESTERN STATES MANSFIELD
Fuel Site Unl. Diesel Unl. Diesel
Estimate Annual Fuel Cost
MSC $193,190.88 $88,859.50 $194,305.50 $89,065.90
Golf
Course
$1,328.12 $325.69 $1,470.96 $356.95
Foothills
Park
$5,091.17 $1,628.44 $5,638.68 $1,784.71
Fire
Station #1
$66,406.50 $18,889.88 $73,548 $20,702.52
Fire
Station #2
$16,380.27 $20,844 $18,141.84 $22,844.16
Fire
Station #4
$973.96 $6,730.88 $1078.70 $7,376.76
Total: $283,370.90 $137,278.39 $294,183.68 $142,131
Attachment B
BIDDERS: SOUTHERN COUNTIES MERRIMAC
Fuel Site Unl. Diesel Unl. Diesel
Estimate Annual Fuel Cost
MSC $195,212 $89,182 $185,821.50 $87,612.50
Golf
Course
$1,325.88 $326.63 $1,451.88 $358.13
Foothills
Park
$5,450.54 $1,753.13 $5,565.54 $1,790.63
Fire
Station #1
$66,294 $18,944.25 $72,594 $20,771.25
Fire
Station #2
$16,352.52 $20,904 $17,906.52 $22,920
Fire
Station #4
$972.31 $6,750.25 $1,064.71 $7,401.25
Total: $285,607.25 $137,860.26 $284,404.15 $140,853.76