Agenda Item Wording:
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Authorize the City Manager to execute a new contract with Kings Petroleum, LLC for the supply and delivery of petroleum products. This contract will be for one year, with 4 optional one-year renewals, and an annual not to exceed amount of $1,500,000.
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Deadline for Action: 3/20/2023
Submitting Department: Public Works
Contact Name and Phone Number:
Mike Morgantini, Fleet Supervisor, mike.morgantini@visalia.city, 713-4182
Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
Staff recommends that Council authorize the City Manager to execute a new contract with Kings Petroleum, LLC of Visalia, CA for the supply and delivery of petroleum products in accordance with the specifications of Request for Bid (RFB) 22-23-27. This contract will be for one year, with 4 optional one-year renewals.
Background Discussion:
The City has utilized an annual contract for the supply and delivery of petroleum products (fuel) to fueling stations located at various City facilities. Petroleum products are currently being supplied by Kings Petroleum, LLC under contract C18051, which expired in December 2022.
The bid for petroleum products was advertised in the newspaper on January 3, 2023, and January 10, 2023, and also posted on Bidnet. Additionally, letters were mailed to suppliers from Bakersfield to Fresno. The City of Visalia received 2 bids as shown in the summary below:
Kings Petroleum LLC of Visalia
$97,065.00
Silva's Oil Co. of Fresno
$148,360.50
The bid specifications require that the vendor guarantee that the City of Visalia fuel tanks do not fall below a level less than 25% and have local storage tank reserves within a 100-mile radius of the City of Visalia in the event of an emergency. The bid pricing was based on anticipated delivery costs, whereas the petroleum products will be supplied at the price listed in the daily oil price information service report (OPIS). The price for fuel...
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