SR 05-09-2017 3B
Ci ty Council
Report
City Council Meeting : May 9, 2017
Agenda Item: 3.B
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Street & Fleet Services
Subject: Award Bid for Purchase of Renewable Diesel Fuel
Recommended Action
Staff recommends that the City Council authorize the Purchasing Services Manager to
issue purchase order s with Pinnacle Petroleum, Inc., a California -based company, for
the purchase and delivery of renewable diesel fuel. This recommende d award is made
as an exception to the competitive bidding process pursuant to Section 2.24.080(b ), as
competitive bidding has already occurred, and is for a total amount not to exceed
$512,250 over t wo years and six months , with future year funding contingent on Council
budget approval.
Executive Summary
The purchase of renewable diesel fuel supports the City’s Sustainable City Plan goals
for reduced emissions and sustainability. Pinnacle Petroleum, Inc. is the current
renewable diesel provider to the State of California. Staff recommends the issuance of
purchase order s that utilize the State of Californ ia Contract No. 1 -15 -91 -31D,
Supplement 2, for the purchase of renewable diesel fuel. Renewable diesel fuel would
be used by the Street and Fleet Services and Water Resources divisions , as well as the
Fire Department. The total amount is not to exceed $5 12 ,250 for a two -year and six -
month period, through November 2, 2019.
Background
The City’s vehicles and equipment run on a wide variety of fuel types, including
Compressed Natural Gas (CNG), Renewable Natural Gas (RNG), electricity, propane,
unleaded, an d diesel fuels. Public Works staff, in coordination with the Sustainable
Fleet Team, are actively working towards reducing greenhouse gas (GHG) emissions to
meet the goals of the Sustainable City Plan, Administrative Instruction II -4 -22,
Sustainable Fleet Plan in 2015, and the Council’s September 13, 2016 directive to
achieve carbon neutrality by 2050 or sooner (Attachment A).
Renewable diesel fuel is not a petroleum -based product. Feedstocks for the production
of renewable diesel fuel sold in California come from waste animal fat from the food
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processing industry and from waste fat from the fish processing industry. This fuel type
is produced through the process of hydrotreating, which produces an end product ,
which is chemically equivalent to conventio nal diesel fuel.
In July 2013, the California Air Resources Board (CARB) and the State Water
Resources Control Board released a joint statement through the State of California
Governor’s Office, indicating that renewable diesel should be treated the same as
conventional CARB diesel for all purposes, including storage in underground storage
tanks. The statement also noted that renewable diesel is considered a “drop -in” fuel
that can be used with existing infrastructure and diesel engines and that it meets the
requirements for conventional diesel and ASTM D975 -12a specifications and should be
treated no differently than conventional diesel fuel that is legal for sale in California.
In August 2015, the State of California solicited bids for the purchase and delivery of
renewable and red dye renewable diesel fuel, which included a stipulation that the
contract would be available for use by participating local agencies. Red dye renewable
diesel has a small amount of red dye added to the fuel to denote that the fuel is to be
used in off -road vehicles only, due to the fact that road taxes are removed from the cost
of the fuel. The State of California’s current two -year contract expires on November 3,
2017, with two one -year extension options available (Attachment B).
Discussion
The City’s municipal fleet inventory currently has 76 vehicles and pieces of equipment
that are powered with diesel fuel, including crane trucks, backhoe loaders, tractors, and
asphalt rollers and grinders. The Fire Department also has a nother 25 vehicles and
pieces of equipment that use diesel fuel, and the Water Resources Division ha s four
diesel storage tanks for their generators at various locations. Although the City strives
to reduce the number of diesel -powered equipment as new te chnologies become
available, there are no readily available alternatives for the heavy -duty equipment. The
cost differential between renewable diesel and conventional diesel fuel is $0.022 per
gallon in Los Angeles County, which would equate to an increase of approximately
$1,170 annually if the City were to replace conventional diesel fuel with renewable
diesel , based on the City’s average usage of 53,104 gallons per year.
The City has diesel fuel tanks at the following locations:
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Site Tank Capacity
(in g allons)
City Yards (Tank 1) 6,500
City Yards (Tank 2) 6,500
Beach Maintenance Facility 2,000
Fire Station #1 2,150
Fire Station #2 900
Fire Station #3 950
Fire Station #5 2,150
Arcadia Water Treatment Plant 5,000
Charnock Well Station 3,000
Moss Avenue Pump Station 1,000
San Vicente Well Station 5,000
The availability of renewable diesel fuel addresses the need to reduce carbon and
greenhouse gas emissions, where other alternative fuel options are not available.
Average reductions in criteria pollutants when comparing renewable diesel against
conventional diesel usage, are as follows:
NO X emissions: -10%
Particulate Matter (PM) emissions: -30%
Carbon Monoxide (CO) emissions: -35%
Total Hydrocarbon emissions: -40%
With respect to greenho use gas (GHG) emissions t he CARB calculates the carbon
intensity, or the entire “field to fuel tank” carbon footprint, of renewable diesel to be
58.47% lower than that of conventional diesel. Because renewable diesel is considered
a “drop -in” fuel, the Cit y would be able to significantly reduce GHG emissions without
the need to retrofit infrastructure or vehicles.
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The State of California’s procurement process allows for other local municipalities to
use contract 1 -15 -91 -31D, Supplement 2 for the purchase of renewable and red dye
renewable diesel fuel.
Although there have been no issues with availability and delivery of renewable diesel
fuel, should renewable diesel fuel become unavailable, under the terms of this contract
ultra -low sulfur diesel #2 (ULSD #2) would be purchased until renewable diesel could
again be delivered.
Vendor Selection
Staff recommends Pinnacle Petroleum, Inc. to furnish and deliver renewable diesel fuel
as an exemption to the competitive process. Section 2.24.080(b) of the Santa M onica
Municipal Code, Exception to Competitive Bidding, allows the City to use a competitive
bidding process that has already been completed by Federal, State, County, City, or
special district government agencies, to purchase the same supplies or equipmen t that
the other entity has already purchased under an existing bid. Staff recommends utilizing
this process in order to obtain the most competitive pricing for renewa b le diesel fuel .
The State has already engaged in the competitive bidding process, resul ting in State of
California contract No. 1 -15 -91 -31D.
Financial Impacts and Budget Actions
The purchase orders to be awarded to Pinnacle Petroleum, Inc. are for a n ot to exceed
amount of $512 ,250. Funds of $65,000 are available in the FY 2016 -17 budget in the
Public Works and Fi r e Departments. The purchase order s will be charged to the
following accounts:
Account Number Amount
54459.522910 $20,000
01312.522910 $20,000
25671.544010 $20,000
31661.566450 $5,000
TOTAL $65,000
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Future year funding is contingent upon Council budget approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Climate Action Update to Council
B. Contract_User_Instructions_1 -15 -91 -31D,_Supplemen t_2_REV_1 -07 -16
C. Oaks Form_Pinnacle Petroleum (3B)
Ci ty Council
Report
City Council Meeting : September 13, 2016
Agenda Item: 8.B
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To: Mayor and City Council
From: Dean Kubani, Sustainability Manager , Office of Sustainability & the
Environment
Subject: Climate Action Update to Council: 15x15 Climate Action Plan Final Report,
Sea Level Rise Analysis and the New Climate Action and Ada ptation Plan
Recommended Action
Staff recommends that the City Council:
1. Review and comment on the 15X15 Climate Action Plan Final Report ; and
2. Direct staff to complete a feasibility and financial impact analysis for achieving
carbon neutral ity by 2050 or s ooner , and return to Council with
recommendations.
Executive Summary
The City of Santa Monica has been a long -time pioneer among cities taking local action
to spur global response to the threat of long -term climate change. As a coastal city in
an arid cl imate zone, our city is particularly vulnerable to the potential adverse impacts
of severe climate change due to human activity. The example of Santa Monica and
other local communities have helped catalyze California’s internationally -significant
efforts to mitigate climate change. This worldwide movement of cities and governments
helped support the Paris Agreement last year where 195 countries adopted the first -
ever universal, legally binding global climate accord.
On February 26, 2013, Council adopted the 15x15 Climate Action Plan, which was a
short -term, action -based plan to reduce greenhouse gas emissions 15% below 1990
levels by 2015. Implementation of the 15x15 Climate Action Plan was completed at the
end of FY 2015. Monitoring and evaluation reveal s that the City surpassed its
greenhouse gas emissions reduction target. Compared to 1990, Santa Monica’s annual
emissions are now 20% below baseline.
On January 26, 2016 Council authorized the hiring of a consultant to develop a new
Climate Action and Ad aptation Plan (CAAP) to guide continued reductions and
mitigation efforts to meet the City’s long term emission reduction goals and to develop
adaptation strategies to expected local impacts of climate change. Development of this
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plan is underway and it is scheduled to be delivered to Council in 2017 . A study
evaluating the local impacts of sea level rise and increased storm activity is nearing
completion and this will provide the basis for many of the local adaptation strategies to
be included in the plan.
I n February 2013 Council adopted long range emission reduction targets calling for a
30% reduction by 2030 and 80% by 2050. The December 2015 Paris Agreement that
resulted from the United Nations -organized Conference of the Parties (COP21)
acknowledges th at deeper reductions in global emissions will be required to limit global
average temperature increases and recommends that governments work to achieve
carbon neutrality. Following the release of this agreement the Santa Monica Task
Force on the Environme nt adopted a motion recommending that City Council adopt a
carbon neutrality target for Santa Monica and develop a plan to meet it by 2050 or
sooner. Carbon neutrality means that the net greenhouse gas emissions associated
with a city are zero. This goal h as been adopted by many leading cities around the
world, and is considered the new imperative to avoid worsening climate change. The
CAAP will include a feasibility and financial impact analysis for achieving carbon
neutrality under various timelines, and when the plan is completed staff will return to
Council with final recommendations.
Background
Council adopted the Sustainable City Plan (SCP) in 1994 to protect natural resources,
prevent harm to the natural environment, enhance human health, and improv e the
social and economic well -being of the community for current and future generations.
In light of increasing scientific consensus on the threat of global climate change, o n
October 10, 2006, Council amended the SCP with updated goal areas, targets and
indicators, which included reduction in the local generation of Greenhouse Gas
Emissions (GHG). These are a primary source of build -up of carbon in the atmosphere,
the impetus for global climate change.
The GHG targets established were a 15 percent redu ction below 1990 levels by 2015
communitywide and a 30 percent reduction below 1990 levels by 2015 for municipal
operations. These went considerably beyond the requirements of the landmark AB 32,
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signed into law by California Governor Arnold Schwarzenegger later in 2006.
On July 6, 2010, Council adopted the Land Use and Circulation Element (LUCE), which
calls for the preparation of a Climate Action Plan with periodic monitoring to evaluate
progress. On February 26, 2013, Council adopted longer term emiss ion reduction
targets calling for a 30% reduction below 1990 levels by 2030 and an 80% reduction by
2050, and adopted the 15x15 Climate Action Plan to ensure the City would meet its
previously adopted short term goals of a communitywide15% reduction below baseline
levels and a 30% reduction for municipal operations by 2015. On January 26, 2016
Council authorized the hiring of a consultant to develop a new Climate Action and
Adaptation Plan (CAAP) to guide continued reductions and mitigation efforts to meet the
City’s long term emission reduction goals and to develop adaptation strategies to
address expected local impacts of climate change.
The State Legislature has recently passed legislation committing California to the same
30% reduction by 2030 that San ta Monica adopted three years ago.
Discussion
When the 15x15 Climate Action Plan (15x15 CAP) was prepared, staff conducted a
greenhouse gas inventory of community sources for the year 2011. The inventory
revealed that emissions had dropped 14% below 1990 levels. Staff projected that,
based on increased economic activity and population, emissions would increase. In
order to achieve the 15% reduction target below 1990, the City would have to reduce
approximately 29,000 metric tons of carbon dioxide equivalen ts or MTCO2e,
(equivalents refer to methane and nitrous oxide being measured in units of carbon
dioxide ‘equivalents’).
Figure 1. Santa Monica’s Greenhouse Gas Emissions
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The 15x15 CAP identified 15 objectives to be completed by the end of fiscal year 20 15
(Attachment 1). Each objective includes actions to be implemented by various City
divisions, or required action to be taken by residents and businesses. In total, there
were 34 actions included in the plan . Completing these objectives and actions would
help the City mitigate and reduce the remaining 29,000 MTCO2e and achieve 15%
below baseline targets. The 15x15 Climate Action Plan Final Report has been prepared,
providing greater analysis on the attainment status, challenges and successes of each
action (Attachment 4). This staff report provides a summary of the findings. A summary
table of the analysis (Attachment 2) and a summary of highlights and challenges
(Attachment 3) are attached to provide additional detail and analysis.
The 15x15 CAP was moni tored through indicators provided by various City divisions.
Emission factors for each appropriate action were then applied, generating a value for
reduced or avoided emissions. Emission factors are provided by the US EPA, ICLEI’s
ClearPath Tool (a nationa lly recognized tool for local government climate action
planning), and other industry -standards. The table below shows the attainment status of
the objectives and actions.
Table 1. 15x15 Climate Action Plan Attainment
Attainment / Status Objectives Actions
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Achieved 7 19
Some effort / Some progress achieved 6 9
No effort / No progress 2 6
TOTAL 15 34
Overall, 46% of the 15 objectives were met and 55% of the 34 actions were completed.
17% of the 34 actions were not met or were in progress at the time of this report.
Significant emissions reductions came through the following efforts:
Increasing energy efficiency in residential and commercial buildings through
utility incentives, reducing energy use
Increasing waste diverted through green waste collection and diversion of special
waste like textiles and electronics, reducing methane from decomposing waste
Focusing new development around mass transit, reducing vehicle emissions
through increased access and mobility
Transitioning Big Blue Bus to renewable na tural gas sourced from landfill
methane
Implementing energy efficiency projects in municipal operations to save 1.3 MWh
since 2013
The 15x15 CAP was developed and intended to be implemented within existing
program budgets and staff resources. However, som e of the City -led projects for energy
efficiency, renewable energy and electric vehicles were not implemented due to project
funds not being identified and extensive lead times for project development. While
some small projects were implemented, staff det ermined that strategic planning for
achieving long -term, aggressive goals in energy efficiency, renewable energy and
electric vehicles was a priority.
There were some actions that were completed that were not anticipated in the plan. For
example, at the time of plan development, staff did not take into account the impact of
utility incentive programs on building energy efficiency. Instead of increasing as
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previously projected, annual community energy use in the city dropped appreciably
since 2013: commer cial energy use decreased by over 5 MWh and 1.2M therms; and
residential natural gas use by 200,000 therms. Another example includes the Big Blue
Bus transitioning from virgin natural gas to renewable natural gas sourced from landfills,
an action not previ ously available at the time of plan development. As future programs,
projects and technologies cannot be predicted, the next climate action plan will
incorporate a portion of uncertain efficiencies to be gained through market
transformation.
In order to a chieve the 2015 target, a total of 29,000 metric tons of CO2e would need to
be eliminated. As a result, the monitoring and evaluation tracked verified a t otal of
35,592 metric tons of carbon emissions that were reduced or avoided through the
efforts of the 15x15 CAP and from other regional or statewide efforts.
To complete the analysis, staff conducted an inventory of greenhouse gas emissions
from 2015. The 2015 inventory reveals that emissions have dropped a total of 95,974
MTCO2e since 2011, which is 1 9.9% below the 1990 baseline, surpass ing the City’s
15% target. The additional reductions were a result of increased renewable sources of
electricity generation and more fuel -efficient and alternatively -fuelled vehicles. And
although the City surpassed its target, staff continues to work on the actions that were in
progress or were not yet completed by the end of 2015, which will increase the emission
reductions in the coming months.
Table 2. Santa Monica Greenhouse Gas Emissions Trends
MTCO2e 1990 200 0 2007 2011 2015
Residential 188,514 202,331 196,284 154,666 134,139
Commercial 329,123 326,083 311,762 213,219 149,501
Industrial 32,215 25,902 61,618 35,261 50,951
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Vehicle
Transportation 762,242 752,156 742,070 746,230 715,267
Aviation -- -- 26,800 21,912 26,348
Waste 74,546 63,364 51,705 35,001 34,109
TOTAL 1,386,640 1,369,836 1,390,239 1,206,289 1,110,315
% below 1990 -- 1.2% -0.3% 13.0% 19.9%
Difference from
target (15% below
baseline)
-- 191,192 211,595 27,645 -68,329
Population 86,905 85,0 84 90,379 90,850 93,220
Per capita
emissions 16.0 16.1 15.4 13.3 11.9
Municipal Operations
Council also established a 2015 emissions reduction target for municipal operations of
30% below 1990 levels. Since 1990, municipal operations have increased si gnificantly,
due to expansion of transit services and new facilities being constructed, like Tongva
Park, Parking Structure 6 and Arcadia Water Treatment Plant. After a peak in 2007,
emissions have since declined.
Through implementation of the 15x15 CAP, t he City completed a number of energy
efficiency projects saving 1.3 megawatt hours since 2013. The 15x15 CAP called for a
complete conversion of City -owned streetlights to energy efficient LED bulbs. Due to
funding and scheduling delays outside of the Cit y’s control only 10% of the streetlights
were converted by the end of 2015 . However, before the end of 2016 the City will
complete an LED retrofit of over 1,200 streetlights, nearing the goal previously
established. Staff have identified additional energy efficiency projects totaling over 2
megawatt hours to complete by 2017.
The most significant reduction in municipal emissions came from the transition of Big
Blue Bus (BBB) to renewable natural gas. The transition from virgin natural gas, from
fracked sour ces, to landfill -sourced renewable methane, has helped to reduce BBB’s
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transit fleet emissions by over 60%.
The City continues to procure Renewable Energy Credits (RECs) for 100% of its eligible
electricity accounts. Staff track municipal emissions in two scenarios: one accounting for
RECs and one not accounting. This allows for staff to better understand both the value
of energy efficiency and onsite renewable energy and purchasing RECs. When
accounting for RECs, the City achieved a 42% reduction below 19 90 levels for
municipal greenhouse gas emissions .
Table 3. Municipal Operations Greenhouse Gas Emissions Trends
Establishing a Goal of Ca rbon Neutrality
It is important to keep in mind that local action alone is insufficient to halt or even slow
global climate change. Santa Monica’s efforts are aimed at doing our part and showing
the efficacy of local action as a spur to State, Federal and international cooperation to
face this existential threat to life on earth as we have known it during modern history.
Since Council adopted a target of 30% reduction b y 2030 and 80% by 2050 (80x50),
c limate action planning has matured and growing awaren ess around climate change
MTCO2e 1990 2000 2007 2011 2012 2015
Buildings
&Facilities
Electricity 4,620 6,200 5,042 4,424 5,354 4,995
Natural Gas 585 1,444 1,987 3,141 1,266 982
Streetlights & Traffic
Signals 2,052 3,572 4,298 1,297 2,104 1,589
Vehicle Fleet 3,684 4,001 4,936 2,188 2,124 1,905
Water Delivery 488 1,839 1,722 4,862 4,433 4,133
Big Blue Bus 12,109 16,189 18,069 15,971 15,268 7,436
TOTAL 18,918 27,045 36,054 31,883 30,549 21,040
Percent below 1990 -43% -91% -69% -61% -11%
Renewable Energy Credits 9,772 9,340 5,721 7,458 10,142
TOTAL less RECs 17,273 26,714 26,162 23,091 10,898
Percent below 1990 9% -41% -38% 28% 42%
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has spurred more urgency around deep carbon reductions.
The December 2015 Paris Agreement that resulted from the UN -organized Conference
of Parties (COP21) recognizes that in order to limit global average temperature
increase, Pa rties (national governments) should seek to achieve a “balance between
anthropogenic emissions by sources and removals by sinks of greenhouse gases in the
second half of this century.” This can be interpreted as advocating for carbon neutrality
by 2050. B eing carbon neutral means that the net greenhouse gas emissions
associated with a city are zero. The Agreement also recognizes that deep reductions in
global emissions will be required with an emphasis “that enhanced pre ‐2020 ambition
can lay a solid found ation for enhanced post ‐2020 ambition.”
Shortly after the release of the Paris Agreement, the Santa Monica Task Force on the
Environment adopted the followi ng motion on December 21, 2015: “In light of the
recent COP21, which explicitly includes a carbon neutrality goal, the Task Force on the
Environment strongly recommends City Council adopt a carbon neutrality target for
Santa Monica and direct staff to develop a plan for meeting that target by 2050 or
sooner.”
Santa Monica is an active member of the De ep Carbon Reductions Working Group and
an observer of the Carbon Neutral Cities Alliance within the Urban Sustainability
Directors Network. Through research and information sharing with other leading
sustainable cities, staff has recognized that a bold and transformative vision of change
must be developed in order to achieve drastic reductions in emissions. Cities that had
previously adopted 80x50 targets have, in recent years, adopted carbon neutrality goals
or other more aggressive goals.
Other cities h ave adopted goals to be fossil -fuel free or to achieve 100% renewable
energy. A goal of 100% renewables is more specific and more challenging when applied
to building energy and vehicle fuels; electricity and natural gas must be sourced from
renewables (or natural gas use will be diminished greatly) and all vehicles will be
electrified or powered by other low -carbon fuels like hydrogen. A goal of 100%
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renewables can be a contributing factor toward achieving carbon neutrality. Some cities
use this goal becau se they believe it is easier to understand and is more inspirational
than a carbon emissions goal. Below is a table of other cities’ long range carbon and
energy goals and target years.
Table 3. Leading Cities’ Climate Goals
City Emissions Goal Target Y ear
Copenhagen Carbon neutral
100% renewables
2025
2050
Melbourne Carbon neutral 2020
Palo Alto 80% below baseline 2030
San Francisco 80% below baseline
100% renewables
2050
2030
San Diego 100% renewables 2035
Santa Monica (current) 80% below baselin e 2050
Seattle Carbon neutral 2050
Stockholm Fossil -fuel free 2050
Vancouver Fossil -fuel free
100% renewables
2050
2050
On February 26, 2016, when Council approved the selection of DNV -GL to prepare the
City’s Climate Action & Adaptation Plan (CAAP), staff had required that the consultant
compare pathways to an 80x50 goal and a carbon neutrality goal. The CAAP will
include feasibility and financial impact analyses of achieving carbon neutrality by 2030,
2040, and 2050 and will present recommendations for Council consideration and
approval. Regardless of the final recommendation, it is clear that a dramatic shift in
building energy use, energy generation and vehicle fuels will need to occur to meet any
aggressive long term emission reduction goal. Belo w is a conceptual graphic of that
shift.
Figure 2. Pathways to Deep Decarbonization
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Source: Jeffrey Sachs, Columbia University
The process to develop the CAAP will engage community leaders and specialists in
identifyin g measures that will reduce emis sions and support climate adaptation. Staff,
with consultants, will also engage the community to identify actions that can be taken by
individuals, businesses and local organizations to support the Plan. A goal to achieve
carbon neutrality would establish the imperative for deep carbon reductions and would
build off of existing efforts to continue reducing and mitigating carbon emissions at the
community level and in municipal operations.
While new goals and measures are being established in the next CAAP, staff are
already integrating resource conservation into policy and project development that will
serve as the foundation for carbon emissions reductions. Some examples include:
Prioritizing multimodal mobility, including low carbon options like biking, w alking,
and transportation by bus and rail
Evaluating a requirement for solar energy systems and energy efficiency in
exceedance of the State energy code to achieve zero net energy in new
construction by 2017
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Designing for zero net energy and zero net wate r in the proposed City Services
Building
Designing a multiuser microgrid for the City Yards redevelopment area and
utilizing EcoDistricts as a framework for neighborhood planning and engagement
Achieving zero waste to landfills by 2030
Climate Change Adap tation
While Santa Monica continues to remain a leader among sustainable cities, our efforts
alone will not be enough to avoid the momentum of global climate change. Changing
climatic trends like drought, increased heat and worsened air quality, are curren tly being
experienced. Future hazards, such as sea level rise, more frequent and larger wildfires
and increasing numbers of extreme heat days, are alre ady considered likely to happen
despite best case scenarios for global emissions reductions. Adaptation a nd resilience
are considered to be the next forefront of sustainable community planning as a
response to climate change impacts.
California is making important strides in addressing and requiring climate resilience,
including Gov. Jerry Brown’s Executive Order B -30 -15, which requires state agencies to
factor climate change into their planning and investment decisions; AB 1482, which
requires the Natural Resource Agency to report on the State’s vulnerabilities to climate
change by sector and prepare a “Safe guarding California” implementation plan; SB 246,
which requires the Office of Planning and Research to coordinate regional and local
efforts with state climate adaptation strategies; and SB 379, which requires all cities and
counties to include climate ad aptation and resiliency strategies in the safety elements of
their general plans upon the next revision beginning January 1, 2017.
Climate change will soon be a required consideration for long range planning and
capital projects. To respond to some of th ese challe nges, Office of Sustainability and
the Environment staff have contributed to the development of a new resource entitled “A
Greater LA: the Framework for Regional Clima te Action and Sustainability.” When
completed t his document will:
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Provide strat egies to mitigate the emission of climate change -causing
greenhouse gases
Assess the impacts of climate change and outline adaptation measures to
undertake, and
Outline a path towards sustainable economic growth for communities throughout
Greater L.A.
The CAAP will incorporate information from this work and from the State adaptation
planning efforts , and develop implementation measures for the City’s various
departments to embed adaptation planning. These measures may include:
Ensuring new infrastructure is designed to withstand, adapt or be resilient to
changing environmental conditions, such as intense & infrequent precipitation,
increased temperatures, or increased wave action or coastal inundation
Evaluating the resilience of existing facilities and re trofitting for lowered energy
consumption and grid -independent operations, with technologies like batteries
and fuel cells
Considering co -benefits of programs, projects or infrastructure that serve to
increase awareness, preparedness and resilience to chan ging environmental
conditions
Establishing a baseline of community resilience, using existing tools such as the
Wellbeing Index, and implementing programs to improve on that baseline
Sea Level Rise
As noted above, the CAAP will assess the impacts of clima te change and identify ways
to mitigate, prepare, adapt and be resilient to the challenges posed by these impacts.
Such impacts include: drought, increased temperatures, heat waves, changes in
precipitation and air quality. One area where extensive analysi s is currently being
conducted is around sea level rise.
On August 26, 2014, Council approved the acceptance of grant funds from the
California Ocean Protection Council for data collection and analysis for sea level rise
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(SLR) planning and capacity buildi ng . The grant is funding the development of shoreline
change models that will assess the coastal impacts of SLR and varying degrees of
storms in the LA metropolitan coastal region. The high resolution, dynamic model will
incorporate storms, SLR and shoreli ne change and provide the City of Santa Monica,
and other coastal communities in the Greater Los Angeles Metropolitan Region, with
detailed information to inform the development of climate preparedness and adaptation
planning processes.
Previously, the mo deling activities have followed State guidance for SLR projections,
which assumed a high scenario of approximately 6 ft (2 meters). However, scientists
recently have found that the accelerated melting of the Greenland ice sheet and that of
Antarctica, whic h is not well understood, has the potential to contribute an additional 6.5
feet of sea level rise by 2100.
The State of California is in the process of updating its SLR guidance, which will include
a higher range scenario. Interim guidance is expected i n fall 2016, with final guidance
expected in late 2018.
While the interim State SLR scenarios have not yet been finalized, staff and the
consultant team are anticipating the State to recommend abandoning the “low” sea level
rise scenarios for 2030, 2050 a nd 2100. The State will also likely recommend that
coastal communities include discussion of the impact of 138 inches (or 3.5 meters) of
sea level rise by 2100 in their ongoing adaptation and local coastal planning projects. In
anticipation of this change, the consultant team will provide a qualitative analysis of
what this “extreme high” projection would mean for Santa Monica and the rest of the LA
region.
Table 4. Proposed Sea Level Rise Analysis Changes
Year Low Medium High Extreme High
2030 2 inches 6 inches 12 inches 16 inches ± 4 inches
2050 5 inches 11 inches 24 inches 36 inches ± 10 inches
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2100 17 inches 37 inches 66 inches 138 inches*
*This representative value of 138 inches (or 3.5 m) was selected from a range of possible
values that may be re commended in future State of California guidance, and hence is subject to
change.
Preliminary findings under the existing “high” scenario from the U.S. Geological S urvey
(USGS) and the consultants have revealed less than significant impacts to the north
a nd south beaches in Santa Monica. However, coastal storms, augmented by SLR and
high tides, have the potential to flood the beach parking lots adjacent to the Santa
Monica Pier and around Ocean Park Blvd, and overtake the beach bike path. Properties
at gra de could be impacted by flooding from coastal storms.
A full analysis of the findings, which includes a vulnerability assessment, will be
completed at the end of September 2016. The findings will inform the Local Coastal
Program and the CAAP, which will be delivered to Council in 2017.
Financial Impacts and Budget Actions
While t here is no immediate financial impact or budget action necessary as a result of
the recommended actions , leadership in local climate change policy has significant
long -term fina ncial implications . For that reason, s taff recommends a financial impact
analysis be prepared in conjunction with a new Climate Action & Adaptation Plan to be
reviewed in the summer of 2017.
Prepared By: Garrett Wong, Sustainability Analyst
Approved
Fo rwarded to Council
16 of 16
Attachments:
A. October 10, 2006 City Council Meeting
B. July 6, 2010 City Council Meeting
C. February 26, 2013 City Council Meeting
D. August 26, 2014 City Council Meeting
E. January 2016, 2016 City Council Meeting
F. Attachment 1 15x15 Climate Action Plan Objectives
G. Attachment 2 15x15 CAP Evaluation Matrix
H. Attachment 3 15x15 Climate Action Plan Highlights and Challenges
I. Climate Action Plan Report
J. powerpoint
State of California
CONTRACT USER INSTRUCTIONS
(Incorporates Supplements 1 thru 2 )
***MANDATORY***
CONTRACT NUMBER:
1 -15 -91 -31 D , Supplement 2
DESCRIPTION:
Renewable Diesel R -99 and Red Dye
Renewable Diesel
CONTRACTOR (S):
Pinnacle Petroleum, Inc.
CONTRACT TERM:
11 /0 3 /2015 through 11/0 2 /2017
STATE CONTRACT
ADMINISTRATOR:
Tina Larios
(916) 443 -9776
Tina.Larios@dgs.ca.gov
The contract user instructions, products, and pricing are included herein. All purchase documents
issued under this contract incorporate the contract terms and applicable California General Provisions.
________ SIGNATURE ON FILE _____________ Date: _01/07 /201 6 _
Tina Larios, Contract Administrator
Department of General Services
Procurement Division
707 Third Street, 2 nd Floor
West Sac ramento, CA 95605 -2811
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 2 01/07/2015
User Instructions
Summary of Changes
Supplement
No. Description/Articles Supplement
Date
2
Supplement 2 makes the following changes:
• Article 1. Scope – The language has been revised.
• Article 5. Exempt Purchases – The language has been
revised.
• Article 7. Contract Items – Additional l ang uage has been
added.
• Article 24. Delivery Schedules – The language has been
revised in S ection G, Late Delivery Charges and Section K,
Modification of Contract/Addition of Delivery Location.
• Article 40. Payment – Additional l ang uage has been adde d.
01/07/2016
1
Supplement 1 makes the following changes:
• Article 3. DGS Administrative Fees – The hyperlink has been
revised.
• Article 8. Specifications – The language has been revised.
12/03/2015
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 3 01/07/2015
User Instructions
1. SCOPE
Th e State’s contract with Pinnacle Petroleum, Inc. (contractor) provides Renewable D iesel R -99 and Red
Dye Renewable Diesel at contracted pricing to the State of California and local governmental agencies in
accordance with the requirements of C ontract # 1-15 -91 -31 D. T he contractor shall supply the entire portfolio
of products as identified in the cont r act and will be the primary point of contact for data collection, reporting,
and distribution of Renewable D iesel to the State.
T he contract term is for two (2) year s with a n option to extend the contract for two (2 ) additional one (1)
period or portion thereof . The terms, conditions , and prices for the contract extension option shall be by
mutual agreement between the contractor and the State . If a mutual agreement cannot be met the contract
may be terminated at the end of the current contract term.
2. CONTRACT USAGE/RULES
A. State Departments
• The use of this contract is mandatory for all State of California departments.
• Orderin g departments must adhere to all applicable State laws, regulations, policies, best
practices, and purchasing authority requirements, e.g. California Codes, Code of Regulations,
State Administrative Manual, Management Memos, and State Contracting Manual Volume 2 and
3, as applicable.
• Prio r to placing orders against this contract, departments must have been granted non -IT
purchasing authority by the Department of General Services, Procurement Division (DGS/PD) for
the use of this statewide contract. The depa rtment’s current purchasing authority number must be
entered in the appropriate location on each purchase document. Departments that have not been
granted purchasing authority by DGS/PD for the use of the State’s statewide contracts may access
the Purchasi ng Authority Application at
http://www.dgs.ca.gov/pd/Resources/publications/SCM2.aspx or may contact DGS/PD’s
Purchasing Authority Management Section by e -mail at pams@dgs.ca.gov .
• Departments must have a Department of General Services (DGS) agency billing code prior to
p lacing orders against this contract. Ordering departments may contact their Purchasing Authority
contact or their department ’s fiscal office to obtain this information.
B. Local Governmental Agencies
• Local governmental agency use of this contract is optional.
• Local government agencies are defined as “any city, county, city and county, district or other
governmental body or corporation, including the California State Universities (CSU) and University
of California (UC) systems, K -12 schools and community colleges’’, empowered to expend public
funds for the acquisition of products, per Public Contract Code Chapter 2, Paragraph 10298 (a)
(b). While the State makes this contract available to local governmental agencies, each local
governmental agency should determine whether this contract is consistent with its procurement
policies and regulations.
• Local governmental agencies shall have the same rights and privileges as the State under the
terms of this contract. Any agencies desiring to participate shall be required to adhere to the same
responsibilities as do State agencies and have no authority to amend, modify or change any
condi tion of the contract.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 4 01/07/2015
User Instructions
• Local governmental agencies must have a DGS agency billing code p rior to placing orders against
this contract. D GS agency billing codes may be obtained by emailing the DGS billing code contact
with the followi ng information:
o Local governmental agency
o Contact name
o Telephone number
o Mailing address
o Facsimile number and e -mail address
DGS Billing Code Contact: Kimberley.Carey@dgs.ca.gov or Kao.Yang@dgs.ca.gov
C. Unless otherwise specified within this document, the term “ordering agencies” will refer to all State
d epartments and/or local governmental agencies eligible to utilize this contract. Ordering and/or usage
i nstructions exclusive to St ate d epartments or local governmental agencies shall be identified within each
article.
3. DGS ADMINISTRATIVE FEES
A. State Departments
The DGS will bill each State department an administrative fee for use of this statewide contract. The
administrative fee should NOT be included in the order total, nor remitted before an invoice is received
from DGS.
Current fees are available online in the DGS Price Book located at:
http://www.dgs.ca.gov/ofs/NewsEvents/PriceBookAnnouncement.aspx . (Click on “Price Book”.)
B. Local Governmental Agencies
For all local government agency transactions issued against the contract the Contractor is required to
remit the DGS/PD an Incentive Fee of an amount equal to 1% of the total purchase order amount
excluding taxes and freight. This Incentive Fee shall not be included in the agency’s purchase price, nor
invoiced or charged to the purchasing e ntity. All prices quoted to local governmental agency customers
shall reflect State contract pricing, including any and all applicable discounts, and shall include no other
add -on fees.
4. SB/DVBE OFF -RAMP PROVISION
There is no SB/DVBE off ramp associated with this contract.
5. EXEMPT PURCHASES
To purchase conventional diesel and biodiesel fuels in lieu of renewable diesel requires an approved
exemption from the DGS Office of Fleet and Asset Management (OFAM). Please refer to Management
Memo Number 15 -07 at http://www.documents.dgs.ca.gov/osp/sam/mmemos/MM15_07.pdf for more
information.
6. PROBLEM RESOLUTION /SUPPLIER PERFORMANCE
Ordering agencies and/or contractors shall inform the State C ontract A dministrator of any technical or
contractual difficulties encountered during contract performance in a timely manner. This includes and is not
limited to informal disputes, supplier performance, outstanding deliveries, etc.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 5 01/07/2015
User Instructions
For contractor performance issues, ordering agencies must submit a complete d Supplier Performance
Report via email or facsimile to the State Contract Administrator identified in Article 34 (Contract
Administration). The ordering agency should include all relevant information and/or documentation (i.e.
Purchase documents).
7. CONTRACT ITEMS
RENEWABLE DIESEL : T he c ont ract cost i s ba s ed on thr ee (3) fac to rs : Reg i on Base Ma rk et Co st , Car Cost
Fee and the Di ffe r ent i al Price . T he fo ll owi ng formula out li nes the c ont ract price per ga ll on to be pa id by the
or de ri ng agen cy.
C ont r act Pr ici ng Fo r mu la:
REGION BASE MARKET PRICE + CAR COST FEE + DIFFERENTIAL = COMPOSITE PRICE
Posted daily by the Contract Posted daily by the Contract Provided by
Administrator using OPIS data Administrator using OPIS data the Supplier
RED DYE RENEWABLE DIESEL : T he c ont ract cost i s ba s ed on four (4) fac to rs : Reg i on Base Ma rk et
Co st , Car Cost Fee, Di ffe re nt i al Pric e and ($0.01) per gallon for Red Dye . T he fo ll owi ng formula
out li nes the c ont ract price per ga ll on to be pa id by the or de ri ng agen c y.
C ont r act Pr ici ng Fo r mu la:
REGION BASE MARKET PRICE + CAR COST FE E + DIFFERENTIAL + $0.01 PER GALLON = COMPOSITE PRICE
Posted daily by the Posted daily by the Provided by Red Dye
Contract Administrator Contract Administrator the Su pplier
using OPIS data) using OPIS data)
A. Reg i on Base Ma rk et Co s t:
T he Reg i on Base Ma rk et Co st i s reported w ee kly by the S tate ’s Cont ract Administr ato r. F or the ba s e
price of the renewable diesel the State will use Bi od ies el B 5, therefore the or de ri ng agen ci es s ha ll use
da il y “Time of De liv ery” “Ra ck Av er age” pric e quoted for B5 in the OP IS f or pr odu ct de scr i pt i on OPIS
GROSS SME BIODIESEL NON -TAX ADJUSTED W/OUT RIN MARKET INDEX WITHOUT CAR
COST.
The DGS/PD currently uses the following Reg i on Base Ma rk et Price (RBMP ) on the Biodiesel: Los
Angeles, Sacramento, San Jose and Stockton. However, when the Region Base Market Price (RBMP)
information is not presented from OPIS an alternative solution must be established so that the invoice
process can still move forward.
B. Di ff er ent ials
T he di ff er ent i al cos ts f or ea ch district are li s ted be low:
District Counties (within District) Region Base Market
Price (RBMP) Differential
7 Los Angeles, Ventura Los Angeles $0.0220
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 6 01/07/2015
User Instructions
C. Publication Posting
T he Depa rtm ent of G ene r al Ser vi ces, Procurem ent D ivi si on tracks and m on i to rs f uel c hange s.
Procurem ent D ivi si on w il l pr epa re f uel c ha r ge do cum ents and e-mail to the c ont rac to rs, da il y of
REGION BAS E MAR KET COST and CAR Co st f ees f or all f ue ls.
Procurement Division shall additionally email all end users of the contract the consolidated weekly
base pric es ea ch Monday or the fi rs t worki ng day of the w ee k. T he w ee kly email s ha ll incl ude the da il y
pric e c hange s. T he c ont rac tor s ha ll forward a c opy of the Procurem ent D ivi si on w ee kly po sti ng to all
de liv er y loc at i ons that ha ve been invoic ed f or pa ym ent to s ub s tant i ate the a cc uracy of the ba se prici ng
on the invoic e. To r eque st the w ee kly ba se po sti ng inform at i on complete the Reque st f or F uel Rate
In form at i on (Attachment D ) form and r etu r n/s end ema il : Tina.Larios@dgs.ca.gov
8. SPECIFICATIONS
All products listed on the Contract Pricing (Attachment A) m ust conform to the specifications entitled R -99,
Renewable Diesel Fuel as per State of California specification Number 9108 -3279, dated 06/19/2015
(Attachment 2 ).
Additional Requirements :
• E ach fuel delivery shall have a Bill of L ading (BOL) that includes all of the following specific
information:
o Renewable diesel fuel must be stated in the BOL.
o The load start date must be the same as the load stop date in the BOL.
o The volume of delivered fuel must be stated in the BOL.
9. CUSTOMER SERVICE
There are no specific customer services requirements associated with this contract.
10. ELECTRONIC CATALOG/CONTRACT WEBSITE CONT ENTS
There is no electronic catalog or contract website associated with this contract.
11. PRE -ORDER CONFIGURATION CONSULTATION (OFFER GENERATION)
There is no pre -order configuration associated with this contract.
12. OFFER FORMAT
There is no specific offer format associated with this contract.
13. ELECTRONIC WASTE RECYCLING FEE
There is no electronic waste recycling fee associated with this contract.
14. PRODUCT SUBSTITUTION S
There are no product substitutions associated with this contract.
15. PROMOTIONAL PRICING
There is no promotional pricing associated with this contract .
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 7 01/07/2015
User Instructions
16. STATE AGENCY INFORMATION TECHNOLOGY CERTFICATION REQUIREMENT
There is no technology certification requirement associated with this contract.
17. PURCHASE E XECUTION
A. State D epartments
1) Purchase Documents
State departments must use the Purchasing Authority Purchase Order (Std. 65) for purchase
execution. An electronic version of the Std. 65 is available at the Office of State Publishing web
site: http://www.dgs.ca.gov/pd/Forms.aspx (select Standard Forms).
All Purchasing Authority Purchase Orders (Std. 65) must contain the following:
• Agency Order Number (Purchase Order Number)
• Ordering Agency Name
• Agency Billing Code
• Purchasing Authority Number
• Leveraged Procurement Number (Contract Number)
• Supplier Information (Contact Name, Address, Phone Number, Fax Number, E -mail)
• Line Item number
• Quantity
• Unit of Measure
• Product Description
• Tank size
• Region Base Market Price (RBMP used on invoice will be for day of delivery)
• Differential Price
• Composite Price
• Extension Price
• Commodity Code Number
• Product Description
• Unit Price
2) Blanket Orders
The use of Blanket Purchase Orders (BPO) against this statewide contract may be permitted but
only with prior written approval from the Contract Administrator and meeting the following written
guidelines. An executed copy of the BPO must be submitted to the Contract Administrator for
approval before it is submitted to the contractor. At a minimum, the following written re quirements
must be documented on each BPO.
Wr itten required guidelines on each BPO :
• If the purchase crosses into a different Fiscal Year (FY), the ordering entity must warrant
they have budget authority for the expenditure;
• The order is only used for items on the contract ;
• The order does not exceed the contract period ;
• When funds are exhausted a new order is issued ; and
• The order is issued only to one contract supplier .
Note: The contractor shall reject and return to originator any BPO submitted without proper
approval.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 8 01/07/2015
User Instructions
3) American Recovery and Reinvestment Act (ARRA) - Supplemental Terms and Conditions
Ordering departments executing purchases using ARRA funding must attach the ARRA
Supplemental Terms and Conditions document to their individual purc hase documents.
Departments are reminded that these terms and conditions supplement, but do not replace,
standard State terms and conditions associated with this leveraged procurement agreement.
• ARRA Supplemental Terms and Conditions
Note: Additional information regarding ARRA is available by clicking here to access the email
broadcast dated 08/10/09, titled Supplemental Terms and Conditions for Contracts Funded by the
American Recovery and Reinvestment Act .
B. Local Governmental Agencies
Local governmental agencies may use their own purchase document for purchase execution. The
purchase documents must include the same data elements as listed above (Exception: Purchasing
Authority Number is used by State departments only).
C. Documentation
All ordering agencies will submit a copy of executed purchase documents to:
DGS - Procurement D ivision (IMS# Z -1)
Attn: Data Entry Unit
707 Third Street, 2 nd Floor , MS 2 -212
West Sacramento, CA 95605 -2811
18. MINIMUM ORDER
The minimum order shall be seventy percent (70%) of tank capacity for below ground tanks and sixty percent
(60%) of tank capacity for above ground tanks. Oders for less than the minimum order quantity shall be
delivered at the contract price plus a “Premium” of not more than ten cents ($0.10) per gallon. It will be the
contractor’s responsibility to deliver the “Net” gallons necessary to fill orders that are placed that meet or
exceed the minimum order quantity required.
19. ORDERING PROCEDURE
A. Ordering Methods:
Ordering agencies are to submit appropriate purchase documents directly to the contractor(s) via one of
the following ordering methods:
• U.S. Mail
• Facsimile
• Email
The contractor’s Order Placement Information is as follows:
ORDER PLACEMENT INFORMATION
U.S. Mail Facsimile Email
Pinnacle Petroleum, Inc.
Attn: Liz McKinley
16651 Gemini Lane
Huntington Beach, CA 92647
(714) 841 -8855 lmckinley@pinnaclepetroleum.com
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 9 01/07/2015
User Instructions
Note: When using any of the ordering methods specified above, all State departments must conform to
proper State procedures.
20. ORDER ACCEPTANCE
The Contractor shall accept orders from any State department or local governmental agency. The Contractor
shall not accept purchase documents for this contract that:
• Are incomplete;
• Are submitted without CA approval of non -core items
• Contain non -contract items; or
• Contain non -contract terms and conditions.
The Contractor must not refuse to accept orders from any State department or local governmental agency for
any other reason without written authorization from the CA .
21. ORDER RECEIPT CONFIRMATION
The C ontractor will provide ordering agencies with a n order receipt confirmation, via e -mail or facsimile ,
within 48 hours of receipt of purchase document . The O rder Receipt Confirmation shall include the following
information:
• Ordering Agency Name
• Agency Order Number (Purchase Order Number)
• Purchase Order Total Cost
• Anticipated Delivery Date
22. OUT OF STOCK REMEDY
There is no out of stock remedy associated with this contract.
23. DISCONTINUED ITEM REMEDY
There is no discontinued item remedy associated with this contract .
24. DELIVERY SCHEDULES
Delivery for orders placed against this contract shall be in accordance with the following:
A. Locations
Deliveries are to be made (statewide) to the location specified on the individual purchase order .
B. Schedule
Delivery of ordered product shall be completed in full within three (3) working days a fter receipt of an
order (ARO). Since receiving hours for each ordering agency will vary by facility, it will be the
Contractor’s responsibility to check with each facility for their specific delivery hours before delivery
occurs. The Contractor must notify the ordering agency within 12 hours of scheduled delivery time, if
delivery cannot be made within the time frame specified on the Order Confirmation.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 10 01/07/2015
User Instructions
Contractor is requested to make deliveries in Los Angeles County, Orange County, San Bernardino
Metropolitan Area, and San Diego Metropolitan Area during off -peak hours. Off -peak hours are Monday
through Friday, 10:00 AM to 4:00 PM.
C. Security Requirements
Deliveries may be made to locations inside secure institutional grounds (such as the California State
Prisons) that require prior clearances to be made for delivery drivers. Since security clearance
proced ures for each facility may vary, it will be the Contractor’s responsibility for contacting the secure
location for security clearance procedures, hours of operation for deliveries and service, dress code,
and other rules of delivery. Deliveries that are delayed due to drivers not being cleared to enter
institutional grounds may cause your firm to be declared in default of contract requirements.
D. Delivery Locations
Delivery shall be made to the specified locations listed on the Delivery Locations (Attachment B ) l isting,
except by written authorization from the Procurement Division State Contract Administrator. All
deliveries made in a tank wagon must be metered. Deliveries to remote locations may, by mutual
agreement with the receiving location and the contractor, be delivered on regularly scheduled “keep full”
bases with no additional charges to the State.
Refer to Article 24, Se cti on K , Modification of Contract/Addition of Delivery Location to add/modify a
delivery location for this contract.
Note: Many of the delivery location are semi -remote and access may only be possible over narrow
winding unpaved roads. These roads may often limit delivery to trucks without trailers and in some
instances smaller than normal trucks may be required. A lack of familiarity with a delivery location will in
no way relieve a contractor from his responsibility to fulfill the terms and conditions of the contract.
E. Delivery Equipment
Contractor will be required to make deliveries at the time specified in vehicles suitable for each
individual location. These vehicles shall be equipped as required by applicable laws, rules or regulations
with all components; such as connectors and hoses of the proper size, length, etc., necessary to
successfully complete delivery. All delivery vehicles and/or trailers must have accurate metering
equipment to enable State Personnel to verify quantities delivered. It is the responsibility of the
contractor to verify the proper connection and hose before the first delivery.
Note: De liv ery Lo c at i on (A tta chm ent B) listi ng atte m pts to r epo rt the tank fi tt i ng app li c ab le to ea c h
loc at i on. Cont rac tor w il l be res pon sible to c on firm ac tual tank fi tt i ng/c oup li ng pri or to de liv ery.
F. S tand i ng Time
T he S tate s ha ll be ent itl ed to s tand i ng time f or the pu r po s es of un l oad i ng, of not more than one (1) hou r ,
at no c ha r ge. A c ha r ge of $1.00 per mi nute s ha ll be a ss e ss ed f or S tand i ng Time in which the ca rr ier’s
equ ipm ent i s deta i ned, th r ough no f au lt of the ca rr ier, in e xc ess of the one (1) no c ha r ge hou r. Cha r ged
time s ha ll be s uppo r ted wi th the app r op ri ate do cum ent s. F or pa ym ent to be proce ss ed, the S tand i ng
Time b illi ng must a cc om pan y, on a s epa r ate invoic e, the f uel b illi ng. S ta rt time s ha ll beg in w hen the
ca rr i er i s r eady to hoo k-up to the f uel tan k. E nd time s ha ll c on cl ude w hen ca rr i er di sc onne c ts or i s
f inis hed l oad i ng f uel i nto the tan k.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 11 01/07/2015
User Instructions
G. Late De liv ery Cha r ge s
T he pa rti es to th is ag r ee m ent ack no wl edge that the or de ri ng agen cy s ha ll inc ur ac tual da m ages s hou l d
the Cont rac tor fail to de liv er the renewable diesel and red dye renewable diesel as s pe cifi ed in the
c ont ract de liv ery r equ irem ent s. Late De liv ery c ha r ges must be s uppo r ted by app r op ri ate do cum entat i on
(de liv ery l og s, c onta ct na mes, et c.). It i s ag r eed that the Cont rac tor w il l pay the Or de ri ng A gen cy tw ent y-
f iv e (25) c ents per ga ll on per or der f or l ate de liv ery of renewable diesel and the Or de ri ng A gen cy w il l
make an ad justm ent to be reflec ted on the invoic e. No rm al de liv ery worki ng hou rs are 8:00 AM to 5:00
PM Monday th r ough Fr i da y, e xc ept S tate ob serv ed ho li da ys.
H. Demurrage Charge
During normal delivery hours of 8:00 AM to 5:00 PM the Contractor’s truck upon arrival shall be
admitted to the delivery site without delay. If the Contractor attempts to deliver fuel to a delivery site
and the Contractor’s truck is detained at the delivery site for reasons such as locked gates, unavaila ble
receiving personnel, etc. caused by the ordering agency the Contractor shall be entitled to Demurrage
fee. Demurrage time shall be invoiced separately and supported by appropriate documentation
(deliv ery logs, contact names, etc.). Demurrage time invoice must accompany the fuel invoice for
payment of the demurrage fee. The demurrage fee shall not exceed $2.50 per minute and not to
exceed $150.00 per delivery.
I. Trip Cha r ge
Du ri ng no rm al de liv ery hou rs of 8:00 AM to 5:00 PM the Cont rac to r’s truck, upon a rr iv al, s ha ll be
ad mi tted to the de liv ery si te wi thout de lay. If the Cont rac tor atte m pts to de liv er f uel to a de liv ery si te and
i s not ad mi tted to the de liv ery si te f or r ea s ons be y ond the Cont rac to r’s c ont rol, c au s ed by the or de ri ng
agen cy, the Cont rac tor s ha ll be pa id a trip c ha r ge f ee. Trip c ha r ge time s ha ll be invoic ed s epa r ate ly and
s uppo r ted by app r op ri ate do cum entat i on (de liv ery l og s, c onta ct na mes, et c.). A trip c ha r ge f ee invoic e
must a cc om pany the f uel invoice f or pa ym ent of t rip c ha r ge f ee. T he trip cha r ge f ee s ha ll not exceed
$2 5 0.00 per de liv ery.
J. A dd iti onal Requ irem ents
Winterization shall be available for purchase from the contractor during the winter months starting
October 1, 2015, throughout April 30, 2017. The purchase is available for life of the contract, including
any contract extensions. The purchase of winterization shall be added to renewable diesel authorized
only by State of California Departments and participating local agencies, at a cost of five cents ($0.05)
per gallon.
K. Mod ific at i on of Cont rac t/A dd iti on of De liv ery Lo c at i on
De liv ery si tes m ay be added, c hanged or de l eted as dee m ed ne ce ss ary by DGS/P D. A tank with a
minimum capacity of 500 gallons must be requested from the or de ri ng agen cy in order for DGS/PDA to
add a new delivery location. A dd iti onal un li s ted loc at i ons and/or tank c hanges m ay be r equ ir ed af ter
origi nal c ont ract awar d. Di ff er ent ials f or tho s e un li s ted loc at i ons and/or tank c hanges s ha ll be the same
as the listed differential for the district the tank is located in .
Process f or add iti on of de liv ery si te (s ) i s as fo ll ows:
1) Or de ri ng agen cy pro vi des S tate C ont ract Administr ator wi th the De liv ery A dd iti on Lo c at i on
Reque st (Attachment C ) form i nd ic at i ng r eque st f or new de liv ery si te (s).
2) S tate Cont ract Administr ator i ss ues re vi s ed De liv ery Lo c at i on (A tta chm ent B) listi ng f or c ont rac t.
3) S ta te Cont ract Administr ator c onta c ts c ont rac tor wi th new de liv ery si te (s) inform at i on
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 12 01/07/2015
User Instructions
If the c ont rac tor de liv ers to an un li s ted de livery loc at i on wi thout ack no wl edge m ent fr om the S tate
Cont ract Administr ator it s ha ll be unde rs tood that the c ont rac tor has a cc epted that add iti onal de liv er y
loc at i on and s ha ll c ha r ge the di ff er ent i al as li s ted in the c ont rac t.
Deliveries to unlisted delivery locations shall be reported to the State Contract Administrator so that
those location(s) may be officially added to the delivery location list.
25. URGENT/EMERGENCY ORDERS
A. Urgent Delivery
Contractor shall make urgent deliveries during regular working hours for minimum delivery requirements
within two (2) working days ARO at NO ADDITIONAL COST to the State or local agencies. Urgent
deliveries are not anticipated to occur often and should be kept to a minimum by the ordering State or
local agencies.
B. Emergency Deliv ery
Deliveries requested outside the regular working hours of 8:00 AM to 5:00 PM and State observed
holiday’s days shall be considered an emergency. Orders may be placed by telephone, f ollowed by a
purchase order (Std. 65) sent to the contractor by facsimile or US mail. Emergency delivery invoice must
accompany the fuel invoice for payment of the emergency delivery fee. The emergency delivery charge
shall not exceed $120.00 per deliver y.
26. FR EE ON BOARD (F.O.B.) DESTINATION
All prices are F.O.B. destination; freight prepaid by the contractor, to the ordering organization's receiving
point. Responsibility and liability for loss or damage for all orders will remain with the contractor until final
inspection and acceptance, when all responsibility will pass to the ordering organization, except the
responsibility for latent defects, fraud, and the warranty obligations.
27. PALLETS
There are no pallet requirements a ssociated with this contract.
28. SHIPPED ORDERS
All shipments must comply with General Provisions (rev 06/08/2010 ), Paragraph 12 entitled “Packing and
Shipment”. The General Provisions are available at :
http://www.documents.dgs.ca.gov/pd/modellang/GPnonIT060810.pdf .
29. PACKING SLIP
There are no packing slip requirements associated with this contract.
30. PACKING LABEL
There are no packing label requirements associated with this contract.
31. HAZARDOUS MATERIALS DOCUMENTATION
Refer to Article 8, Specifications for required documentation for this contract.
32. INSTALLATION
There is no installation associated with this contract.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 13 01/07/2015
User Instructions
33. INSPECTION AND ACCEPTANCE
Not applicable under this contract.
34. CONTRACT ADMINISTRATION
Both the State and the contractor have assigned contract administrators as the single points of contact for
problem resolution and related contract issues.
Administrator
Information
DGS/PD
(State Contract Administrator)
Pinnacle Petroleum, Inc.
(Contractor)
Contact Name: Tina Larios Liz McKinley
Telephone: (916) 443 -9776 (714) 841 -8877
Facsimile: (916) 375 -4613 (714) 841 -8855
Email: Tina.Larios@dgs.ca.gov Lmckinley@pinnaclepetroleum.com
Address: DGS/Procurement Division
Attn: Tina Larios
707 Third Street, 2 nd Floor, MS 201
West Sacramento, CA 95605
Pinnacle Petroleum, Inc.
Attn: Liz McKinley
16651 Gemini Lane
Huntington Beach, CA 92647
35. RETURN POLICY
There is not return policy associated with this contract .
36. CREDIT POLICY
There is no credit polic y associated with this contract unless any product is removed or recalled .
37. RECALL POLICY
The contractor shall provide recall notification, regardless of level, in writing to the State Contract
Administrator and each ordering agency through the most expedient method possible. The notices, at a
minimum, shall include a complete product description and/or identification, contract number, delivery order
number and disposition instructions. The contractor shall issue replacement of product or credit for any
product removed or recalled. Each ordering agency shall have the option of accepting either replacement
product or credit in exchange for recalled/removed products.
38. RESTOCKING FEES
There are no restocking fees associated with this contract.
39. INVOICING
Ordering agencies may require separate invoicing, as specified by each ordering organization. Invoices will
contain the following information:
• Contractor’s name, address and telephone number
• Leveraged Procurement Number (Contract N umber )
• Agency Order Number (Purchase Order N umber )
• Item and commodity code number
• Quantity purchased
• Contract price and extension
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 14 01/07/2015
User Instructions
• State sales and/or use tax
• Prompt payment discounts/cash discounts, if applicable
• Totals for each order
• District number
40. PAYMENT
A. Terms
Payment terms for this contract are net forty -five (45 ) days. Payment will be made in accordance with
the provisions of the California Prompt Payment Act, Government Code Section 927 , et seq. Unless
expressly exempted by statute, the Act requires State departments to pay properly submitted,
undisputed invoices not more than forty - five (45 ) days after the date of acceptance of goods,
performance of services, or receipt of an undisputed in voice, whichever is later.
B. Gov ernment Code Section 927.11 (a)
California Prompt Payment Act; In addition to Paragraph 30 “Required Payment Date” of the
General Provisions the below also apply:
Except in the case of a contract with a certified small business, a nonprofit organization, or a
nonprofit public benefit corporation, if an invoice from a business under a contract with the
California Department of Forestry and Fire Protection (CDF or CAL FIRE ) would become subject
to late payment penalties during the annually declared fire season, as declared by the Director of
Forestry and Fire Protection, then the required payment approval date shall be extended by 30
calendar days. Therefore, the above provides the California Department of Forestry and Fire
Protection with a payment due date of 45 days plus 30 days for a total of 75 days.
Note : Contractors have the option to reject orders from the California Department of Forestry
and Fire Protection during fire season.
C. C AL -Card Use
With an additional 10% charge, S tate departments may use the CAL -Card for the payment of invoices.
U se of the CAL -Card requires the execution of Purchasing Authority Purchase Order (Std. 65) as
reference d in Article 17 (Pu rchase Execution) and must include all required documentation applicable to
the purchase .
The CAL -Card is a payment mechanism, not a procurement approach and, therefore, does not relieve
departments from adhering to all procurement laws, regulations, policies, procedures, and best
practices, including those discussed in the State Contracting Manual (SCM) Volume 1 and Vol ume 2.
This includes but is not limited to the application of all sales and use tax laws, rules and policies as
applicable to the purchase.
D. Payee Data Record
Each S tate accounting office must have a copy of the Payee Data Record (Std. 204) in order to process
payments . State departments should forward a copy of the Std. 204 to their accounting office(s).
Without the Std. 204, payment may be unnecessarily delayed. State departments should contact the
contractor for copies of the Payee Data Record.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 15 01/07/2015
User Instructions
41. CAL -CARD INVOICING
All CAL -Card invoices are to be processed separately from other payment methods and include the elements
identified in Article 38 , Invoicing. CAL -Card invoices shall be submitted to the CAL -Card account holder.
The total invoice amount for each CAL -Card order must reflect a zero balance due or credit, if applicable,
and state “paid by CAL -Card”.
For additional information regarding DGS/PD’s CAL -Card program, see the following website:
http://www.dgs.ca.gov/pd/Programs/Leveraged/CALCard.aspx
42. CALIFORNIA SELLER’S PERMIT
The California seller permit number for the contracto r is listed below. State departments can verify that
permit s are currently valid at the following website: www.boe.ca.gov . State departments must adhere to the
file documentation required identified in the State Contract ing Manual Volume 2 and Volume 3, as
applicable .
Contractor Name Seller Permit #
Pinnacle Petroleum, Inc. 99661168
43. ACCESSIBILITY COMPLIANCE/ VOLUNTARY PRODUCT ACCESSIBILITY TEMPLATE (VPAT)
There are no accessibility requirements associated with this contract.
44. WARRANTY
There are no warranty requirements associated with this contract.
45. QUALITY ASSURANCE GUARANTEES
Refer to Article 8, Specifications fo r quality assurance provisions associated with this contract.
46. EQUIPMENT REPLACEMENT DURING WARRANTY
Not applicable under this contract.
47. PRINCIPAL PERIOD OF MAINTENANCE
There is no principle period of maintenance associated with this contract.
48. RECY C LED CONTENT
There is no recycled content associated with this contract.
49. SMALL BUSINESS /DISABLED VETERAN BUSINESS ENTERPRISE PARTICIPATION
There is no small business (SB) or disabled veteran business enterprise (DVBE) participation for this
contract.
50. TAKE BACK/TRADE IN
There is no take back/trade in associated with this contract.
STATE OF CALIFORNIA Supplement 2
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract User Instructions
Contract 1-15 -91 -31D Page 16 01/07/2015
User Instructions
51. ELECTRONIC WASTE RECYCLING
There is no electronic waste associated with this contract.
52. ATTACHMENTS
Attachment A – Contract Pricing
Attachment B – Delivery Locations
Attachment C – Delivery Addition Location Request
Attachment D – Request for Fuel Rate Information
Attachment 2 – State of California S pecification Number 9108 -3279, dated 06 -19 -2015
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