Agenda Item Wording:
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Authorize City Manager to execute a new annual contract for the supply and delivery of oil and grease products to SC Fuels/Southern Counties Oil, not to exceed $185,000 annually. This is a one-year contract with 4 one-year optional renewals.
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Deadline for Action: 9/5/2023
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 SC Fuels of Fresno, CA for the supply and delivery of petroleum products in accordance with the specifications of Request for Bid (RFB) 22-23-57. This contract will be for one year, with 4 one-year optional renewals.
Background Discussion:
The City has an annual contract to supply and deliver oil and grease products to the fleet maintenance shop. Per the City's Purchasing Policy, all contracts must go out to bid after five years of service. The bid for oil and grease products was advertised on June 22nd and June 29th in the newspaper and placed on Bidnet. Purchasing received 3 bids as shown in the summary below:
Company Location Bid
SC Fuels Fresno $ 172,202.13
Kings Petroleum Visalia $ 188,757.73
Safety Kleen Systems Fresno $ 176,892.33
Prior spending for this service was:
FY 2020-21 $89,594
FY 2021-22 $89,510
FY 2022-23 $125,193
Quantities of frequently used products were estimated for bidding purposes. However, with the growth of the City, and subsequently its fleet of vehicles and equipment, it is anticipated that volumes will vary, and likely increase over the life of the contract. Additionally, in order to protect the interest of the City and to give bidders a reasonable basis for bidding, the terms of the contract allow for an annual adjustment (up to 5% maximum) commodity price increase according t...
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