SR 02-27-2024 5C
City Council
Report
City Council Meeting: February 27, 2024
Agenda Item: 5.C
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To: Mayor and City Council
From: Matthew Hallock, Fire Chief, Fire Department
Subject: Authorization to Issue Purchase Orders with Falcon Fuels, Inc. for the
Purchase and Delivery of Unleaded Fuel
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing
Facilities) of the California Environmental Quality Act (CEQA) guidelines; and
2. Authorize the Procurement Manager to issue a purchase order with Falcon
Fuels, Inc. for the purchase and delivery of unleaded fuel for the City of Santa
Monica. This recommended award is made as an exception to the competitive
bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to
exceed $3,161,991 (including a 10% contingency) with future year funding
contingent on Council budget approval.
Summary
The City utilizes unleaded fuel in over 250 vehicles and equipment, including
emergency response vehicles in the Santa Moncia Fire Department (SMFD), Santa
Monica Police Department, and hybrid vehicles in the Department of Transportation
(DOT). The current purchase order for unleaded fuel expires on April 23, 2024. Staff
recommends issuing a purchase order with Falcon Fuels, Inc. for the purchase and
delivery of unleaded fuel for a total amount not to exceed $3,161,991 over a four-year
period including a 10% contingency.
Discussion
Currently, the City purchases unleaded fuel from Pinnacle Petroleum. The purchase
order expires on April 23, 2024, at which time the City will begin purchasing from Falcon
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Fuels, Inc. which is the unleaded fuel provider for Los Angeles County area under the
State of California contract.
In February 2023, the State of California solicited bids for the purchase and delivery of
unleaded fuel, which included a stipulation that the contract would be available for use
by participating local agencies. The State of California’s three-year contract is from
March 2, 2023, through March 1, 2026, with the option for two one-year extensions
which could extend the contract through March 1, 2028. The State of California’s
procurement process allows for local municipalities to use contract no. 1-23-91-02C for
the purchase of regular unleaded gasoline.
Staff estimates citywide usage of unleaded fuel at approximately 150,000 gallons per
year, based on usage over the past few years. However, unleaded fuel usage should
continue to decline as the City shifts to hybrid and electric vehicles. Staff anticipates the
purchase order with Falcon Fuels, Inc. to begin in mid-April 2024, with current fiscal
year usage estimated at 31,250 gallons. Based on price quote provided by Falcon
Fuels, the current unleaded 87 fuel price is about $3.49, including various taxes and
fees. Staff projects an annual 15% increase in the total per gallon cost and a 10%
contingency.
Vendor Selection
Exception to Competitive Bidding
Staff recommends Falcon Fuels, Inc. to furnish and deliver unleaded fuel as an exception to
competitive bidding per Muni Code 2.24.250 (c). This purchase meets the City’s exception to
competitive bidding criteria, as competitive procedures were followed by the State of California and the
goods are supplied to the City at the same or better price. Due to economies of scale, the State of
California is able to secure a better price for unleaded fuel, purchasing throughout the State and in
conjunction with other government entities, versus the City of Santa Monica going out to bid on our own
for approximately 150,000 gallons.
c. competitive procedures were followed by a governmental agency, federal, state,
county, city, joint powers agency, special district, or cooperative purchasing agency
and the goods or services are supplied to the City at the same or better price;
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Environmental Review
The purchase order for unleaded fuel is categorically exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the
CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from
CEQA, which includes the operation, repair, maintenance, permitting, leasing, licensing,
or minor alteration of existing public or private structures, facilities, mechanical
equipment, or topographical features, involving negligible or no expansion of existing or
former use. The purchase order for unleaded fuel would not result in any modifications
to existing fueling facilities and would not expand or materially change existing fueling
operations or increase the fleet of vehicles or equipment using unleaded fuel. Therefore,
this is categorically exempt as set forth in Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund and Big Blue Bus Fund
to award a purchase order with Falcon Fuels, Inc. for the purchase and delivery of
unleaded fuel. Future year funding is contingent on Council budget approval.
Purchase Order Request
Current Year
Request
Amount
Amount for
Future Years Fund FY 2023-24 Budget
Account #
Total Contract
Amount
$10,794 $305,405 General Fund 01190001.521810 $316,199
$97,145 $2,748,647 Big Blue Bus Fund 60600013.521831 $2,845,792
Total $3,161,991
Prepared By: Jonathan Tang, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative-Falcon Fuels
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B. Levine Act Disclosure Form-Falcon
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CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the
City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public
benefit” is sought by an entity, rather than an individual person, the information
includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d)
officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-month period;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
in any 12-month period;
5.Land use variance, special use permit, or other exception to an established
land use plan, where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any
12-month period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any
12-month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
5.C.a
Packet Pg. 157 Attachment: Oaks Initiative-Falcon Fuels (6204 : Unleaded Fuel for City Vehicles)
City of Santa Monica Levine Act Disclosure Form
CITY OF SANTA MONICA
CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section
84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any
action related to a contract, license, permit, or entitlement if such Officer received
campaign contributions totaling more than $250 within the previous twelve months, and
for twelve months following the date of a final decision, from a party or participant to the
proceeding, or their agent.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any
elected or appointed officer of an agency, any alternate to an elected or appointed officer
of an agency, and any candidate for elective office in an agency. The term “Officer” is
further defined 2 Cal. Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in
making, or in any way attempt to use their official position to influence a decision
in the license, permit, or entitlement for use proceeding, or who exercise authority
or budgetary control over the agency or officers who may do so, and:
(1)Serve in an elected position, including an official appointed to an elected
position due to an interim vacancy or an election otherwise canceled because the
official was the sole candidate for the position;
(2)Serve as a member of a board or commission;
(3)Serve as the chief executive of a state agency, or county, city or district of any
kind; or
(4)Have decision making authority with respect to the proceeding involving a
license, permit, or other entitlement for use and is also a candidate for elected
office or has been a candidate for elective office in the 12 months prior to the
proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can
be found at the following links. The party making this certification is responsible for
determining whether a recipient of a political contribution is a City Officer prior to
completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.
Have you, your company, or any agent on behalf of you or your company, made
any political contributions of more than $250 to any City Officer in the twelve
months preceding the date of the submission of your application or proposal?
____YES ____ NO
Name of Councilmember or City Officer: _________________________________
5.C.b
Packet Pg. 158 Attachment: Levine Act Disclosure Form-Falcon (6204 : Unleaded Fuel for City Vehicles)
City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________
Date(s) of Contribution(s): ____________________________________________
Amount(s) ________________________________________________________
Please specify below and/or add additional sheet(s) to identify additional
Councilmembers or City Officers to whom you and/or your agents made campaign
contributions.
Answering YES does not preclude the City of Santa Monica from awarding a contract,
license, permit, or entitlement or taking any subsequent action related to the item. It does,
however, preclude the identified City Officer from participating in any actions related to
such item.
By signing below, you certify you also agree to disclose to the City any future
contributions made to Councilmembers or other City Officers by you or your
agent(s) after the date of signing this disclosure form, and within 12 months
following the approval, renewal, or extension of the requested contract, license,
permit, or entitlement.
I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE
STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signed: ____________________________ Date: ____________________
Print Name: _________________________ Title: _____________________
Company: __________________________
Additional Disclosures:
Please note this form is a public record and subject to a California Public Records Act
request.
5.C.b
Packet Pg. 159 Attachment: Levine Act Disclosure Form-Falcon (6204 : Unleaded Fuel for City Vehicles)