SR-04-24-2012-3KCity Council Meeting: April 24, 2012
Agenda Item: 3 °K-
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Purchase of Unleaded Gasoline
Recommended Action
Staff recommends that the City Council award Bid #3087 to IPC, Inc., a California based
company, to supply and deliver unleaded gasoline over a five year and two month term
in an estimated not to exceed amount of $4,320,335.
Executive Summary
The City utilizes unleaded gasoline for vehicles in the Fire and Police Departments as
well as hybrid vehicles in the Big Blue Bus (BBB). Following a competitive bid process,
IPC, Inc. is recommended to supply and deliver unleaded gasoline as required for an
estimated five -year amount of $4,320,335.
Background
At its February 13, 2007 meeting, Council approved purchase orders to SC Fuels to
supply and deliver premium and regular gasoline for BBB, Fire, and Police vehicles.
The City participated in a cooperative bid conducted and led by the Los Angeles County
Metropolitan Authority (LACMTA), along with Montebello Bus Line, for the solicitation to
supply and deliver premium gasoline. The bid award was for a 24 -month period
beginning February 2007, with three additional one -year renewal options at specified
increases. At its February 28, 2012 meeting, Council approved a two -month extension
to SC Fuel's purchase orders 18609 -OF, 19481 -OF, and 19139 -OF to continue
purchasing premium and regular unleaded gasoline for BBB, Fire, and Police vehicles
until completion of a competitive bid. The City's reduced emissions fuel policy currently
allows an exception for the use of unleaded gasoline for the operation of emergency
response vehicles, and for hybrid vehicles still in service. The BBB, Fire and Public
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Works Departments maintain fuel storage tanks at their locations where these vehicles
obtain fuel.
Discussion
The City currently has emergency response vehicles in the fleet that have operated on
premium and regular unleaded gasoline. These vehicles include Police motorcycles,
patrol and detective cars, and various Fire emergency response vehicles. The BBB
currently uses unleaded gasoline on hybrid buses, staff cars, and service vehicles.
Upon award of this bid, all emergency response vehicles, hybrid buses, staff cars, and
service vehicles will operate on regular unleaded gasoline only. This will allow all areas
to standardize and use regular unleaded gasoline which is less expensive than the
premium.
Vendor Selection
In February 2012, the City published Notices Inviting Bids to supply and deliver
unleaded regular gasoline for BBB, Fire, and Police vehicles in accordance with City
specifications. The bid was posted on the City's on -line bidding site, and notices were
advertised in the Santa Monica Daily Press in accordance with the City Charter and
Municipal Code provisions. Five bids were received and publicly opened on March 8,
2012 at 3:00 p.m. in the Finance Department, as detailed in Attachment A. The bids
were evaluated based on the criteria in SMMC 2.24.072, including price and ability to
deliver. IPC, Inc. offered the lowest price over the five year and two month period.
Additionally, references provided positive feedback regarding timely and consistent
services. Based on the criteria, staff recommends IPC, Inc. as the best bidder.
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Financial Impacts & Budget Actions
The amount of the purchase orders to be awarded to IPC, Inc. is $4,320,334 over the
five year and two month term. Funds are included in the adopted FY11 -12 budget at
the following accounts:
54459.522910 Vehicles -Fuels /Lubrication $ 30,292
01312.522910 Vehicles -Fuels /Lubrication $ 8,212
41654.522961 Fuel - Service Vehicles $168,794
Total $207,298
Funds are available in the following accounts for FY12 -13:
54459.522910 Vehicles -Fuels /Lubrication $121,601
01312.522910 Vehicles -Fuels /Lubrication $ 32,846
41654.522961 Fuel - Service Vehicles $675,176
Total $829,623
Budget authority for subsequent years will be requested in each budget cycle for
Council approval. Future funding is contingent upon Council approval.
Prepared by: Monica Diaz, Buyer
Approved:
fGigi Decavailes-'Hughes
Director of Finance
Attachments: Attachment A - Pricing
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Forwarded to Council:
Rod Gould
City Manager
ATTACHMENT A
BID 3087 - UNLEADED GASOLINE
BID CLOSING DATE: 03 -08 -2012
DESCRIPTION: FURNISH AND DELIVER UNLEADED REGULAR GASOLINE AS REQUIRED BY FLEET MANAGEMENT DIVISION, BIG BLUE BUS,
AND FIRE DEPARTMENT.
Apex Fuels
Temecula, CA
IPC (USA), Inc
Irvine, CA
Petroleum Traders
Fort Wayne, IN
Pinnacle Petroleum
Huntington Beach, CA
SC Fuels
Orange, CA
BBB Subtotal Period 1
$168,794.00
$167,189.13
$168,974.38
$167,993.88
$168,156.12
BBB Subtotal Period 2
$675,176.00
$668,756.50
$676,230.50
$672,937.50
$672,624.48
BBB Subtotal Period 3
$675,176.00
$668,756.50
$676,563.50
$673,899.50
$674,206.05
BBB Subtotal Period 4
$675,176.00
$668,756.50
$677,877.00
$673,899.50
$675,787.43
BBB Subtotal Period 5
$675,176.00
$668,756.50
$679,209.00
$673,899.50
$677,368.99
BBB Subtotal Period 6
$675,176.00
$668,756.50
$680,559.50
$673,899.50
$678,950.37
Fleet Subtotal Period 1
$30,291.68
$30,003.67
$30,324.05
$30,407.88
$30,265.44
Fleet Subtotal Period 2
$121,601.02
$120,444.85
$121,790.94
$122,240.75
$121,058.12
Fleet Subtotal Period 3
$121,601.02
$120,444.85
$121,850.91
$122,414.01
$121,336.00
Fleet Subtotal Period 4
$121,601.02
$120,444.85
$122,087.48
$122,414.01
$121,613.88
Fleet Subtotal Period 5
$121,601.02
$120,444.85
$122,327.38
$122,414.01
$121,891.76
Fleet Subtotal Period 6
$121,601.02
$120,444.85
$122,570.61
$122,414.01
$122,169.44
Fire Subtotal Period 1
$8,211.60
$8,435.03
$8,220.38
$8,529.08
$8,536.16
Fire Subtotal Period 2
$32,846.40
$33,740.10
$32,897.70
$34,163.10
$34,144.66
Fire Subtotal Period 3
$32,846.40
$33,740.10
$32,913.90
$34,209.90
$34,294.78
Fire Subtotal Period 4
$32,850.00
$33,740.10
$32,977.80
$34,209.90
$34,444.90
Fire Subtotal Period 5
$32,850.00
$33,740.10
$33,042.60
$34,209.90
$34,595.02
Fire Subtotal Period 6
$32,850.00
$33,740.10
$33,108.30
$34,209.90
$34,745.14
Grand Total
$4,355,425.19
$4,320,335.09
$4,373,525.93
$4,358,365.81
$4,366,188.74