HomeMy WebLinkAboutStaff Report 14701 (2)
City of Palo Alto (ID # 14701)
City Council Staff Report
Meeting Date: 12/19/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approve and Authorize the City Manager to Execute a 5-year General
Services Agreement With Bosco Oil, Inc. in an Amount Not-to-Exceed
$4,801,445 for the Purchase of Unleaded and Diesel Fuels to Supply the City's
Fleet and approve a budget amendment in the Vehicle Replacement and
Maintenance Fund
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute a General Services
Agreement in an amount not to exceed $4,801,445 with Bosco Oil, Inc., dba Valley Oil
Co. for the purchase of unleaded and diesel fuels to supply the City’s fleet for a term of
five years effective January 17, 2023; this includes a contract amount of $4,364,950 and
$436,495 in additional services for fluctuating fuel costs; subject to the annual
appropriation of funds; and
2. Amend the Fiscal Year 2023 Budget Appropriation for the Vehicle Replacement and
Maintenance Fund (2/3 vote needed) by:
a. Increasing the Supplies and Materials allocation for Fuel by $100,000; and
b. Decreasing the Ending Fund Balance by $100,000.
Background
On October 16, 2017, Council approved a five-year contract1 for the provision of automotive
fuel from October 17, 2017 to October 16, 2022. Amendment No. 12 to the contract extended
the term end date by three months to January 16, 2023, per PAMC 2.30.280(b)(2).
1 City Council, October 16, 2017; Agenda #14; CMR 8399,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2017/8399.pdf
2 Amendment No. 1, https://www.cityofpaloalto.org/files/assets/public/public-works/public-
services/contracts/attachment-a.-contract-c18169635.pdf
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City of Palo Alto Page 2
The City used approximately 191,000, 196,000, and 179,000 gallons of fuel (unleaded and
diesel) in Fiscal Years 2020, 2021, and 2022, respectively. 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 including hybrid and
electric vehicles when feasible, and as a result of City-wide staff vacancies and remote work
assignments during the pandemic.
Discussion
Approval of the proposed agreement (Attachment A) will establish a new contract for fuel
supply from January 17, 2023 through January 16, 2028. Staff recommends a contract amount
of $4,801,445 over five years based on the 179,391 gallons of fuel purchased in Fiscal Year
2022, with a ten percent contingency for fluctuations in market price and/or volume needed.
The annual base fuel cost of $872,990 was derived using the Oil Price Information Service (OPIS)
rack rate of $4.8925 for unleaded and $3.855 for diesel as of September 28, 2022 (the day bids
were received), plus taxes and delivery fees, multiplied by the total purchased gallons for each
fuel type from the previous 12-month period ranging from July 1, 2021 to June 30, 2022. The
cost of fuel fluctuates daily and is based on the OPIS rate from the San Jose terminal. For
comparison, the previous contract’s annual base fuel cost of $538,986 was derived using the
OPIS rack rates of $2.0698 for unleaded and $2.0375 for diesel on September 1, 2017. Although
the September 28, 2022 rack rates used to determine the annual base fuel cost result in a
higher contract authorization amount, the actual expenditures under the contract will be based
on rack rates over the next five years. If fuel costs moderate to lower levels, as is generally
expected, unused budget will be returned to the Vehicle Replacement and Maintenance Fund
reserve.
The table below shows the estimated calculation for the annual base fuel cost.
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Bidding and Selection Process
A Request for Quotation (RFQ) to Supply Unleaded and Diesel Fuel to six City locations was
issued on September 12, 2022. Bids were received from three qualified vendors on September
28, 2022.
Since all bids were based off of the same fuel cost, the only variable in these bids was the cost
of delivery. Bidders were instructed to provide delivery costs to each of the six locations
identified in the RFQ. These delivery costs were then multiplied by fuel usage from the 12-
month period from July 1, 2021 to June 30, 2022, to provide an estimated total delivery cost for
each bid. The cost of delivery, without taxes, resulted in proposals ranging from $13,479 to
$77,802 per year (see bid tabulation below).
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City of Palo Alto Page 4
Staff has reviewed all bids submitted and recommends that the bid submitted by Bosco Oil,
Inc., dba 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 of approximately $0.6 million is available in the Fiscal Year 2023 Vehicle Replacement
and Maintenance Fund Operating Budget to purchase fuel. A budget amendment of $0.1
million is recommended to increase the budget for fuel to ensure there is enough to fund the
first year of this contract. Funding will be taken from the Vehicle Replacement and
Maintenance Fund ending fund balance. Funding for subsequent years of the contract is subject
to appropriation of funds through the annual budget process.
Stakeholder Engagement
This contract is for a continuation of existing fuel supply services and stakeholder engagement
was not deemed necessary. This was completed as a public request for bids and coordinated
with internal stakeholders including the procurement division and legal reviews.
Policy Implications
Authorization of this agreement does not represent a change to any existing policy.
Environmental Review
Council action on this item is not a project as defined by CEQA because a purchase contract for
fuel supply is a continuing administrative or maintenance activity. CEQA Guidelines section
15378(b)(2).
Attachments:
x Attachment16.a: Attachment A: Contract
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C23186140
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 26th day of October, 2022, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and BOSCO OIL dba 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
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from January 17, 2023 to January 16, 2028 inclusive,
subject to the provisions of Sections R and W 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 ($ );
OR
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of Four Million
Three Hundred Sixty-Four Thousand Nine Hundred Fifty dollars
($4,364,950.00).
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 Four Hundred Thirty-Six Thousand Four
Hundred Ninety-Five dollars ($436,495.00) 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 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
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of
this Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or
other public improvement of any kind. Public Contract Code Section 9204
mandates certain claims procedures for Public Works Projects, which are set
forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works
Projects”.
This project is a 9204 Public Works Project and is required to comply with
the claims procedures set forth in Appendix __, attached hereto and
incorporated herein.
OR
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager, 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 8 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
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
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 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.
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
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 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
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
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 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 N 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.
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia 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
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 is 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 Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, 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 Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
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 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 Agreement 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 Agreement.
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:
x 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.
x 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.
x Reusable/returnable pallets shall be taken back by CONTRACTOR, 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.
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
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 Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement 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 Agreement 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
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
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 Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that
CONTRACTOR is required to post all job site notices prescribed by law or
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.
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
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.
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
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
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
BOSCO OIL dba VALLEY OIL COMPANY
Officer 1
By:__________________________________
Name:_______________________________
Title:________________________________
Officer 2
By:__________________________________
Name:_______________________________
Title:________________________________
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
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
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
“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.
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.
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
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.
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%.
FUEL SITE LOCATIONS
Table Two - City of Palo Alto Fuel Site Locations
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
69,658
16
15,000 and
5,000
40,195
15
2
Golf Course
1875 Embarcadero Road
1,000
6,191
13
1,000
2,627
8
3
Foothills Park3
3300 Page Mill Road
250
898
7
500
2,220
8
4
Fire Station #1 (University Park)
301 Alma Street
1,000
38,626
113
1,000
4,828
29
5
Fire Station #2 (Mayfield)
2675 Hanover Street
1,000
2,668
11
1,000
8,481
19
6
Fire Station #4 (Mitchell Park)
3600 Middlefield Road
1,000
1,479
4
1,000
1,520
5
Total for all Locations
19,250
119,520
164
24,500
59,871
84
Note: Above fuel usage numbers are taken from previous 12-month period (July 1,
2021– June 30, 2022) and are provided for illustrative purposes. Annual fuel
requirements during the term of this Agreement may vary.
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services according to the following schedule:
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.
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.
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
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.
Fuel Site
Unleaded Fuel
Price Per Gallon
Diesel Fuel Price
Per Gallon
Renewable Diesel
Fuel
Price Per Gallon
Quote delivery charge for gasoline and diesel fuel per the
attached City of Palo Alto specifications.
The City is seeking to establish a pricing contract for a period of
one (1) year, with the option to extend for four (4) additional
years. The purchase agreement is to be renewed by issuing an
annual blanket purchase order each fiscal year.
Over Daily Terminal Price as per specifications
Nr
Name/Address
1
Municipal Services Center
3201 East Bayshore Road
$. .039
$. .059
$. .059
2
Golf Course
1875 Embarcadero Road
$. .115
$. .135
$. .135
3
Foothills Park
3300 Page Mill Road
$. .115
$. .135
$. .135
4
Fire Station #1 (University Park)
301 Alma Street
$. .115
$. .135
$. .135
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
Fuel Site
Unleaded Fuel
Price Per Gallon
Diesel Fuel Price
Per Gallon
Renewable Diesel
Fuel
Price Per Gallon
5
Fire Station #2 (Mayfield)
2675 Hanover Street
$. .115
$. .135
$. .135
6
Fire Station #4 (Mitchell Park)
3600 Middlefield Road
$. .115
$. .135
$. .135
Notice required for delivery (hours): 24 Hours
Pricing will be F.O.B. Palo Alto, CA.
Sales tax rate for the City of Palo Alto is 9.125%.
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
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.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
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 ISSUING
COMPANY 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 ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
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Certificate Of Completion
Envelope Id: 4BC793233B6A44EAB5916B67CDF395AB Status: Completed
Subject: Complete with DocuSign: C23186140 Fuel Delivery contract final vendor only signatures.pdf
Source Envelope:
Document Pages: 20 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Annmarie Romero
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
annmarie.romero@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
11/10/2022 8:08:01 AM
Holder: Annmarie Romero
annmarie.romero@cityofpaloalto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Bob Buck
bob.buck@valleyoil.com
Vice President
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 50.196.172.125
Sent: 11/10/2022 8:10:19 AM
Viewed: 11/10/2022 8:33:35 AM
Signed: 11/10/2022 8:34:09 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Roberta Cummings
roberta.cummings@valleyoil.com
CONTROLLER
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 50.196.172.125
Sent: 11/10/2022 8:34:11 AM
Resent: 11/15/2022 8:59:46 AM
Resent: 11/16/2022 8:51:47 AM
Resent: 11/17/2022 2:10:32 PM
Viewed: 11/17/2022 2:20:28 PM
Signed: 11/17/2022 2:22:03 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Danitra Bahlman
danitra.bahlman@cityofpaloalto.org
Project Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Sent: 11/17/2022 2:22:04 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
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Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 11/10/2022 8:10:20 AM
Certified Delivered Security Checked 11/17/2022 2:20:28 PM
Signing Complete Security Checked 11/17/2022 2:22:03 PM
Completed Security Checked 11/17/2022 2:22:04 PM
Payment Events Status Timestamps
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