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SR-102808-1Gc7 c;tYor City Council Report Santa blonica° - City Council Meeting: October 28, 2008 Agenda Item: ~ ®G~1 Ta Mayor and City Council From: Carol Swindell, Director of Finance Subject: Award of Bid for Motor Oil and Transmission Fluid Recommended Action Staff recommends that City Council award Bid #2950 to Rosemead Oil Products, Inc. to provide motor oil and transmission fluid to the Big Blue Bus Department and the Fleet Management Division in an amount not fo exceed $336,000 annually. Executive Summary Award of bid to Rosemead Oil Products; Inc. for the purchase of motor oil and transmission fluid at specified unit prices, plus applicable sales tax, through June 30, 2009 with three additional .one-year renewal options at a 10% increase each year, subject to annual budget approval. The estimated expenditure for the balance of this fiscal year is $224,000, and funds are available ih the Big Blue Bus Department and Fleet Management Division budgets. The total estimated expenditure for the four-year term is $1,447,376. Discussion The motor oil and transmission fluid will be used to perform- routine maintenance on the City's transit coaches and other fleet vehicles and are purchased on an as-needed basis throughout the year. Whenever possible, the City uses re-refined oil in keeping with the City's Sustainable City Plan. Vendor Selection In June 2008, the City published Notices Inviting Bids to provide motor oil and transmission fluid in accordance with City specifications. Bid forms were mailed to forty- one vendors and notices were advertised in accordance with City Charter and Municipal 1 Code provisions. Seven bids were received and publicly opened on June 27, 2008 per Attachment A. Bids were evaluated based on ability to meet specifications, competitive pricing and completeness of bid response. Based on these criteria, Rosemead Oil Products, Inc. is recommended as the best bidder. Finahcial Impacts & Budget Actions Since Fiscal Year 08/09 has begun, the estimated expenditure for the remainder of this fiscal year will be $224,000. Funds for the purchase of motor oil and transmission fluid are available as follows: Fiscal Year 2008/2009 budget authority in the amount of $224,000 is available as follows: • Fleet: $16,666 account 54554.522910, "Vehicles-Fuels/Lubrication" • BBB: $201,334 in account 41.1.11009, "Inventory-SAE 40 Oil" • BBB: $6,000 in account 41654.522830, "Fuel & Oil Taxes" Budget authority for subsequent years will be included in each annual proposed City budget. Prepared by: Diane Howell, Purchasing Agent Approved: Forwarded to Council: r Director of Finance E P. Xa~rtont Ewell Attachments: Attachment A -Pricing 2 ATTACHMENTA BID #2950 TITLE: PROVIDE MOTOR OIL AND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 Vendor Ggntiao Rhiilips D ig>ti ,& Sn ttg Ina. ~eheral Petroileum Corpo ~tion I Specifications for E56 B Ann. Qty Brand/Desc Price per allon Eztentletl P i Deliv i hi Drantl/Desc Price er Extended Deliv Brandt Desc Price er P Eztentled Delrv B~ . g r ce w t n g allon Price within gallon Price within (gal) SAE-4DWT Dlese 200 Firebird HD40 $ 7.49 $ 1,498.00 3tlays SheI4R W`ellaT $ 6.636 $ 1 32].20 2days GP HD 40 $ 6 94 $ 1 350 00 2d O , . , . ays SAE-15W/40 Diesel 6,000 Firebird HD15I40 $ 8.70 $ 52,200.00 3 days Quaker State Universal HDX $ 6.64] $ 39,802.00 2days GP HD 15/40 $ 6.24 $ 37,440.00 2days. i5W/40 CI4 SAE-15W/40 CNG/LNG 6,500 $ - Shell Mysella LA GEO $ 7.866 $ 51,129.00 2days C M $ 7.64 $ 49 660.00 2days 7 swan GEO 15/40 , DeMron 111 ATF 500 Super ATF $ 6.30 $ 3,150,00 3.days Sh nax $ 5.992 $ 2 996 00 2days GP MD ATF $ 6 49 $ 3 245 00 2d TGlll . , . . , . ays Triton Syn Shell Spirax SOW/140 Synthetic Diff 1,540 Lube EP 00/140 $ 17.51 $ 26,961.55 3tlays ASX Syn GO 00/140 $ 23.810 $ 36,679.]2 2days Texaco Syn $ 20.91 $ 32 201.40 2days ($2.35/Ib) ($3.275/Ib, 55 Star GL 80/140 , gal = 400#) AW315 Hydraulic 1,]so Firebird AW68 $ 6.65 $ 11,]04.00 3days SheIlAW60 $ 5.405 $ 9,512,00 2days 8 NYD GP A $ 5 74 $ 10 102 40 2da s 6 . , . y Betalube(SynthetiC) Donax TX Automatic Transmission 6,000 Triton HD ATF $ 19.71 $ 114,660.00 3tlays m)790 drums= $ 35.553 $ 213,315.85 2days BP AUtran 295 $ 20.94 $1]3,640.00 2-5 days FUId approx 5 gal short Estimated annual cos $ 210,1 73.55 $ 354,8 42.57 $ 307 ,676.80 Sales Tax (8.25%) will apply when applicabl $ 17,339:32 $ 29,274.51 $ 25,383.34 Grand Total $ 227,512.87. $ 384,117.08 $ 333,060.14 Payment Terms Net 30 da s Net 30 no discount Net 30 CA Oil Recycling Fee (CORE) 0.16 / allon 0.16Y allon 0.16 /gallon CA Motor Oil Assessment Fe (CMOA) 0.02 /gallon 0.02 / allon 9 0.02 /gallon If and when applicable, dies ue c„ f 9 9.50 /delivery /invoice 9.92 /delivery Other fees (explain) no drum deposits $4.50, ECF each invoice 0.00119, CA oil spil6fee Renewal Option Period (07/01/09 - 06/30/10) "prices will be adjusted to match any combined Price increases have taken place in 2008 ahead .Supplier increases Renewal Option Period 3 supplier increasesduring the prior year' and the and are due to increase again in August of 2008. (07/01/10 - 06/30/11) price will only be changed if the index increases If it is determined that during BID #2950 original Supplier increases Renewal Option Period 4 by greater than 15 % during this bid time period. term/extension term Dion 8 Sons, Inc. may (07/01/11 - 06/30/12) increase pricing to BID #2950. Supplier increases. Can comply with 2 day delive Can not comply Can Compl Can Compl Pricing stipulations: Given the tumultuous market changes and conditions, pricecan change with documented average base oil value increases for °NOIeS/EXCept10n5 ConocoPhiips Gulf Coast Group II 100, 200, 600N neutral oils. The price will only be changed if the index increases by greater than 15%during this bid time period 7 of 3 ATTACHMENT A BID #2950 TITLE: PROVIDE MOTOR OIL AND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 Vendor ! ' The Jarikovic h C6mpan ~r .Rosem ead QiI P poducts, I nc. S awyer P etraletirri Specifications for Ee` Ann. Price per Brand/Desc Ez[ended Deliv Brand/Desc Price per Extended Deliv Brandt Desc Price per Extended Delrv Qty. BBB gallon Price within gallon Price within gallon Price within 19a11 America's SAE-40WT Diesel 200 Choice CF2 $ 6.82 $ 1,36400 2tlays Soar SDLX $ 6.93 $ 1386.00 2days Shel~~;ellaT $ 6636 $ 1327.20 2days 40wt America's Quaker State SAE-15W/40 Diesel s,ooo Choice CH4 $ 7.268 $ 43,608.00 2tlays. Soar SDU( $ 6.54 $ 39,240.00 2days Universal NOX $ 6.647 $ 39,882.00 2days 15/40 15W/40 CI4 America's Shell Mysella SAE-15W/40 CNG/LNG s,5oo Choice 15/40 $ 9.22 $ 59,930.00 2tlays Soar CNG Plus $ 7.44 $ 48,360.00 2days L.4 GEO $ 7.666 $ 51,129.00 2days CNG/LNG i5W140 Dextron III ATF 500 GoM Coast ATF Dexran III $ 6.25 $ 3,125.00 2tlays Saar ATF D/M $ 6.31 $ 3,155.00 2days Shell Donax $ 5.992 $ 2,99600 2days TGIII Mobil SNC Shell Spirax 80W/140 Synthetic Diff 1,540 60/140 S $ 22.56 $ 34,742.40 2days Premium $ 21.39 $ 32,940.60 2tlays ASX Syn GO BO/140 $ 23.818 $ 36 679 72 2tlays ynthetic Gear Express , . Oil ($3.27511b, 55 gal = 400#) AW315 HydraUiC 1,760 Gold Coast AW68 H tl Oil $ 7015 $ 12,346.40 2days Soar Hydraulic $ 5.38 $ 9,468.80 2tlays SheIlAW68 $ 5.405 $ 9,512.80 2tlas y y . AW Betalube(Synthetic) onax Automatic Transmission s,ooo Debvac Synthetic ATF $ 31.896 $ 19137600 2days fietalube ATF $ 23.92 $ 143,520.00 2tlays ($1,122]15Itlm m)190 tlrums= $ 35.553 $ 213,315.85 2days Fluid approx 5 gal Estimated annual cos $ 346,491.80 $ 278,070.40 $ 354,842.57 Sales Tax (6.25 %) will apply when $ 28,585.57 $ 22,940.81 $ 29 274 51 applicable , . Grand Total $ 375,077.37 $ 301,011.21 $ 384,117.08 Payment Terms Net 30 days Net 30 days Net 30 no discount CA Oil Recycling Fee (CORE) 0.16 / alldn 0.16 / allon 0.16 / allon CA Motor Oil Assessment Fee (CMGA 0.02 / alon 0.02 / alon 0.02 / alon If and wnen appOCable, diesel rues cnarq 12.50 /delivery 15.00 /delive 9.50 /delive /invoice Other fees (explain) $4.50 ECF each invoice Renewal Option Period wou a rec ess o an Iclpa e o mar e (07/01/09 - 06/30/10) fluctuation therefore The Jankovich Company 10 % increase of previous year's prices can establish a baseline price as outlined in the Price increases have taken place in 2006 Renewal Option Period bid and any and all future adjustments will be already and are due to increase again in August (07/01/10 - 06/30/11) accompanied by a copy of [he 10 % increase of previous year's prices of 2006. If it is determined that during BID increase/tlecrease notice from our supplier and #2950 original term/extension term Dion & Sons, Renewal Option Period [ha[ % adjustment will be passed along with a 10 % increase of previous year's prices Inc. may increase pricing to BID #2950. (07/01/11 - 06/30/12 30 da notice to T e Cit of Santa Monica. Can comply with 2 day delive Can Comply Can Compl Can Com I Period 1 firm pricing -per bid request pricing will ' remain firm unless our supplier raises our costa( 'Notes/Exceptions goods based on an intlustry wide increase. Any price adjustment to fiitl #2950 will be accompanied by a letter from our vendor with 30 tlay notice to the city of Santa Monica 2 of3 ATTACHMENT A BID #2950 TITLE: PROVIDE MOTOR OIL AND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 Vendor 'Sayther -~ n Gailnt ~es l,ubrica ritsi Specifications for Es° p BOB Ann. qty. Brandt Desc Price per gallon Extentletl Price Deliv within (gal) SAE-40WT Diesel 2DO Che4 O~RPM $ 6.60 $ 1,320.00 0 SAE-15W/40 Diesel 6,000 Chevron RPM $ 6.46 $ 38 760 00 i5W40 LE , . Chevrom SAE-15W/40 CNG/LNG s,5oo RPM GEO $ 7.17 $ 46,605.00 15W40 Dextron III ATF 50o Chevron ATF $ 6.22 $ 3,110.00 MD-3 Chevron 80W/140 Synthetic Diff 1,540 Tegra Syn. $ 29.66 $ 45 707.20 Gear Lube , aowl4o Chevron AW315 Hydraulic 1,760 Rykom AWISO $ 5.40 $ 9,504.00 66 Betalube(Syhthetic) cnevron Automatic Transmission 6,000 Synthetic ATF $ 18.53 $ 111,180.00 Fluid Heavy Duty Estimated annual cos $ 256,1 86.20 Sales Tax (8.25%)wal apply wne ~ 21,135.36 applicabl - Grand Total $ .277,321.56 Payment Terms Net 30 days CA Oil Re clin Fee (CORE 0.16 / allon CA Motor Oil Assessment Fe (CMOA 0.02 /gallon If and when applicable, diesel fuel charg 6.95 - 12.95 /.delivery Other fees (explain) N/A Due to the fluctuations in the current petroleum market, Renewal Option Period the oil manufacturers will no longer honor fixed pricing (07/01/09 - 06/30/10) for any existing or future bids (with the exception to Bid #2950, which will be firm pricing for 90 days). IWe] have offered the lowest pricing we feel passible based on today's cost. Shoultl we incur additional price increases from the manufacturer during the term of the Renewal Option Period sID, Iwel will be forced to pass this cost on to the City (07/01/10 - 06/30/11) of Santa Monica. Untler no circumstances will the pricing extentled to the City be increased by more than whet the manufacturer increases [our] cast. Shoultl the cost to lus] be Icweretl by the manufacturer, the Renewal O tion Period P decrease in price would also be extentled to the City. When or if there is a price increase Iwe] will provitle 30 (07/01/11 - 06/30/12) day notification in writing, which will be accompanied by the major oil manufacturer's price increase letter. Can comp) with 2 da delive Can Compl *Notes/Exceptions 3of3 ATTACHMENT A BID #2950 TITLE: PROVIDE MOTOR OIL AND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 VBndOr ,. -. GonoGU :. ~i„t[iip~ .. . '~ C I~I;#t~ $r. $, 9nS 1hG:+ `:, ' ~@Il'4+ra~'~~'+,1'Pie UFYt GQ(~p0)' a'tlDil Specifications for Est. :: , , , Ann. Qry Brand /Desc Price per l Extended P i Deliv Brand /Desc Price per Extended Deliv Price per Brand /Desc Extended Delw . FLEET a on g r ce within gallon Price within gallon Price within (gal) SAE-40WT Diesel 0 Firebird HD40 $ 7.49 $ - 3 days Shel~O~ella T $ 6.636 $ - 2days GP HD 40 $ 6 94 $ - 2days . SAE-15W/40 DIBSBI 650 Firebird HD15/40 $ 8.70 $ 5,655.00 3 days Ouaker State Universal HDX $ 6.647 $ ' 4,320.55 2days GP HD 15/40 $ 6.24 $ 4,056.00 2days 15W/40 CI4 Shell Mysella SAE-15W/40 CNG/LNG Laoo $ - LA GEO $ 7.666 $ 1LO12.ao 2days Chevron RPM $ zfia $ msss.oo 2days 15W/40 GEO 15/40 DeXIrOn III ATF 900 Super ATF $ 6.30 $ 5,670.00 3 days Shell Donax $ 5.992 $ 5 392 80 2days GP MD ATF $ 6 49 $ 5 641 00 2da s TGIII , . , . y Talon Syn Shell Spirax 80W/140 Synthetic Diff 0 Lube EP 80/140 $ .17.51 $ - 3 days ASX Syn GO 60/140 $ 23.816 $ - 2days Texaco Syn Slar GL $ 2091 $ - 2days ($2.35/Ib) ($3.275/Ib, 55 80/140 gal = 400#j AW315 HydraUllC 1,100 Firebird AW66 $ 6.65 $ 7,315.00 3days SheIlAW66 $ '5.405 $ 5,945.50 2days HyD GP $ 5.74 $ fi 314 00 2days 66 , . Estimated annua l cos $ 18,6 40.00 $ 26,6 7125 $ 26,9 07.00 Sales Tax (6.25%) $ 1 3 will apply when applicabl ,5 7.80 $ 2,200.36 $ 2,219.83 Grand Total $ 20,177.80 $ 28,871.63 $ 29,126.83 .Payment Terms Net 30 da s Net 30 no discount Net 30 CA Oil Recycling Fee (CORE) 0.16 / allon 0.16 /gallon 0.16 / allon CA Motor Oil Assessment Fee (CMOA) 0.02 /gallon 0.02 /gallon 0.02 /gallon If and when applicable, dies uel c„ f 9 9.50 /delivery /invoice 9.92 /delivery Other fees (explain) no drum deposits $4.50, ECF each invoice 0.00119, CA oil spill fee Renewal Option Period 2 (07/01/09 - 06/30/10) ,Prices will be ad'usled to match an ) Y Price increases have taken place in 2008 already Supplier increases combined supplier increases during the prior and are due to in r i i A t f Renewal Option Period 3 " c ease aga n n ugus o 2008. (07/01/10 - 06/30/11) and the price will only be changed if year If it is determined that during BID #2950 original Supplier increases the index increases by greater than 15% term/extension term Dion & Sons Inc may Renewal Option Period 4 , . (07/01/11 - 06/30/12) during this bid time period. increase pricing to BID #2950. Supplier increases Can comply with 2 day delive Can not compl Can Compl Can Compy Pricing stipulations: Given the tumultuous market changes and conditions, price can change with documented average base oil value increases for `Notes/Exceptions ConowPhillips Gulf Coast Group II 100, 200, fi90N heul2l oils. Thepdce will only be changed if the index increases by greater than 15 % during this bid time period. 1 of 3 ATTACHMENT A 81 D #2950 TITLE: PROVIDE MOTOR OILAND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 Vendor The , J~nkQ~ttc :: h'~+?mpan : ,, . y Rp~~tt~ eaS1 4tI RrddPotS~ l flG $ a aW,y~r R " etfoN~ulp ~. " Specifications for Eet .. , ., . ,. ,~ i,:~ ., .. ., - : , Ann. Qty F Brand/Desc Price per ll Extentletl P i Deliv Brand /Desc Price er P Extended Deliv Brand/Desc p Price er Extentled Dellv . LEET ga on r ce within gallon Price wdhin gallon Price within (gap America's SAE-40WT DleSe 0 Choice CF2 $ 6.62 $ - 2days Soar 3DLX $ 6.93 $ - 2days Shell Rotella $ 6.63fi $ - 40w1 T40wt SAE-15W/40 Diesel 650 America's Chaice CH4 $ 7.268 $ 4,724.20 2 tlays Soar BDLX $ 6.54 $ 4,251.00 2 tlays Quaker State Universal HDX $ 6.fi47 $ 4,320.55 15/40 15W/40 C14 SAE-15W/40 CNG/LNG 1,400 Amedca's Choice 15/40 $ 9.22 $ 12,908.00 2days Soar CNG $ 7.44 $ 10 416 00 2tlays Shell Mysella LA GEO $ 7 866 1 CNG/LNG Pfos , . . $ 1 ,012.40 15W/40 DZXfrOn ATF 900 ~ Goltl Coast ATF Dezran III $ 6.25 $ 5,625.00 2days Soar ATF D/M $ 5.81 $ 5,229.00 2 da s y Shell Donax $ 5.992 $ 5 392 80 TGIII , . Mobil SHC Shell Spimx 80W/140 Synthetic Di8 0 60/140 Synthetic Gear $ 22.56 $ - 2 tlays Premium E $ 21.39 $ - 2 tla s Y AS80/1gpG0 $ 23 818 $ - Oil xpress ($3.275/Ib, 55 . gal = 400#) AW315 Hydraulic 1,100 Gold Coast AW68 H tl Oil $ y 015 $ 7,716.50 2 da s Y Soar Hydraulic $ 5.95 $ 6 545.00 2days SheIlAW68 $ 5 405 $ 5 945 50 y . AW , . , . Estimated annua l cos $ 30,973.70 $ 26,4 41.00 $ 26,6 71.25 Sales Tax (8;25%) $ 2 555 33 will apply when applicable , . $ 2,181.38 $ 2,200.38 Grand Total $ 33,529.03 $ 28,622.38 $ 28,877.63 Payment Terms .Net 30 da s Net 30 da s Net 30 no discount CA Oil Recycling Fee (CORE 0.16 /gallon 0.16 / allon 0.16 / allon CA Motor Oil Assessment Fee (CMOA) 0.02 /gallon 0.02 /gallon 0.02 /gallon If antl when applicable, dies f 1 ce (9 12.50 /delivery 15.00 /delivery 9.50 /delivery /invoice Other fees (explain) $4.50 ECF each invoice Renewal Option Periotl [ wou a rec ess o anhclpate o mar e[ (07/07/09 - 06/30/10) Fluctuation therefore The Jankovich Company can 10% increase of previous year's prices establish a baseline price as outlined in the bid Price increases have taken place in 2008 Renewal Option Period and any and all future adjustments will be already and are tlue to increase again in August (07/01/10 - 06/30/17) accompanied by ampy of the increase/tlecrease 10 % increase of previous year's prices of 2008. If it is determined [hat during BID notice from our supplier and that % adjustment #2950 original term/extension term Dion & Renewal Option Period 4 07/01/11 - 06/30/12 ( ) will be assed alon with a 30 da notice to The p g y 10 % increase of previous year's prices Sons, Inc. may increase pricing to BID #2950. Cit of Santa Monica. Can comply with 2 day delive not indicated Can Comply Can Com 'Notes/Exceptions 2of3 ATTACHMENT A BID #2950 TITLE: PROVIDE MOTOR OIL AND TRANSMISSION FLUID AS REQUIRED BY THE CITY OF SANTA MONICA. BID CLOSE DATE: 06/27/08 - Vendor S4utha F~ aunt ies ~uk~Nc~ hfs Specifications for Es° Ann, erantl/Desc Price per Extentletl Delrv FLEET Qly. gallon Price within (gag SAE-40WT Diesel 0 Chevron RPM $ s.sa $ - 40W SAE-15W/40 Diesel s5o Chevron RPM $ 6.46 $ 4 199 00 i5W40 LE , . Chevrom SAE-15W/40 CNG/LNG 1,aoo RPM GEO $ zn $ 10,o3a.oo 1 swa0 Dextron III ATF soo Chevron ATF $ s.zz $ s sse.oo MD-3 . Chevron SOW/140 Synthetic Diff 0 Tegra Syn. $ p9.66 $ - Gear Lube 80W140 Chevron AW315 Hydraulic 1,100 Rykom AWIBO $ 5.40 $ 5,940.00 68 Estimated annua l cos $ - 25,7 75.00 Sales Tax (8.25%) $ 2 1 will apply when applirabl , 25.44 Grand Total $ 27,901.44 Payment Terms Net 30 da s CA Oil Recycling Fee (CORE) 0.16 / allon CA Motor Oil Assessment Fee (CMOA) 0.02 /gallon If and when applicable, diesel fue charg 6.95 - 12.95 /delive n' Other fees (explain) N/q Due to the fluctuations in the current petroleum market, Renewal Option Period 2 the oil manufacturers will no longer honor fxed pricing (07/01/09 - 06/30/10) for any existing or future bitls (with the exception to Bitl #2950, which will be fnn pricing for 90 tlays). IWe] have ogeretl the lowest pricing we feel possible based on today's cost Shoultl we incur atltlitional price Renewal Option Period increases from the manufacturer tludng the tens of the (07/01 /10 - 06/30/11) DID, [we] will be foroetl to pass this cost on to the City of Santa Monica. Untler no circumstances will the pricing extentled to the City be increased by more than what the manufacturer increases (our] cast. Should the cost to lust be loweretl by the manufacturer, the decrease in Renewal Option Period pace woultl also be extentled to the Cily. When or if (07/01/11 - 06/30/12) there is a price increase [we] will provitle 30-tlay notification in wilting, which will be accompanietl by the major oil manufacturers price increase latter. Can comply with 2 tlay delive Can Compl 'Notes/Exceptions 3of3