PREPARED BY: CHIARA HANNA DATE OF MEETING: 06/05/2023
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH PINNACLE PETROLEUM, INC. FOR THE PURCHASE OF FUEL FOR CITY OPERATIONS FROM JULY 1, 2023 THROUGH MARCH 1, 2026 IN AN AMOUNT NOT TO EXCEED $257,500 FOR FY2023/24, $265,225 FOR FY2024/25, AND $182,121 FOR FY2025/26 THROUGH MARCH 1, 2026, FOR A TOTAL COMPENSATION UNDER THE AGREEMENT NOT TO EXCEED $704,846
CEQA: The purchase of fuel supply is not a project under Section 15378 of the Guidelines for the California Environmental Quality Act (CEQA) and if a project, would be exempt from environmental review pursuant to Sections 15061 (b)(2) and 15061 (b)(3) of the CEQA guidelines.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Workplan Compliance statement
The purchase of fuel supply is not found within the City Council’s Priority Workplan but is necessary for ongoing operations of the City.
BACKGROUND
Various departments throughout the City of San Pablo use City-owned vehicles as part of their duties and operations such as the Police Department, Public Works Department (Maintenance Division and Street Lighting and Landscape District Division), and Community Services Departments (Paratransit Division).
Per the City’s Purchasing Policy (AP-1.6), “purchase of goods and services from any one vendor that are expected to total over $50,000 over the course of the fiscal year should receive City Council approval at the beginning of the fiscal year”.
On December 12, 2018, the City of San Pablo entered into an Agreement with Pinnacle Petroleum for the purchase of fuel at the prices set forth in the fuel purchase agreement between Pinnacle Petroleum and the State of California (contract number 1-18-91-02-A). The City of San Pablo utilized Public Contract Code (PCC) § 10298 and 10299, which authorizes local government agencies and school districts the ability to use California Multiple Award Schedules (CMAS) and other Department of General Services (DGS) agreements without competitive bidding. On June 21, 2022 through Resolution 2022-094, the City Council approved an amendment with Pinnacle Petroleum for the purchase of fuel in FY 2022/23 in the amount of $250,000. The amendment authorized the City to continue piggybacking on a contract agreement between Pinnacle Petroleum and the State of California (Contract No. 1-18-91-02-A).
On March 2, 2023, the State of California entered into a new agreement with Pinnacle Petroleum for fuel services. The contract terms include the option for local governmental agencies to utilize contracted pricing. After reviewing and evaluating the new contract pricing, staff recommends that the City of San Pablo exercise its right to purchase under the new contract agreement between Pinnacle Petroleum and the State of California (contract number 1-23-91-02B). This contract term extends through March 1, 2026.
Staff recommends to budget a total authorization of $257,500 for Fiscal Year 2023/24. Citywide fuel costs are projected to total approximately $265,222 for Fiscal Year 2024/25, and $182,121 for Fiscal Year 2025/26 through March 1, 2026.
|
Fiscal Year |
Amount |
|
FY2023/24 |
$257,500 |
|
FY2024/25 |
$265,225 |
|
FY2025/26 (7/1/25 - 3/1/26) |
$182,121 |
|
TOTAL |
$704,846 |
Staff recommends that the City Council adopt the attached resolution to authorize the City Manager to execute an agreement with Pinnacle Petroleum in an amount not to exceed $704,846 for fuel services received from July 1, 2023 to March 1, 2026.
FISCAL IMPACT
Funding for Fiscal Year 2023/24 will be encumbered through the below mentioned accounts and is already included under the adopted FY 2022-2024 Biennial Budget under the respective departments.
|
Description |
Account |
Amount |
|
Citywide Fleet |
100-1430-43100 |
$220,162 |
|
Paratransit |
263-5410-43100 |
$12,875 |
|
Street Lighting & Landscape District |
237-3610-43100 |
$20,600 |
|
Street Maintenance |
200-3710-43100 |
$3,863 |
|
TOTAL |
$257,500 |
Funding for future years of the contract period is subject to future budget allocation and funding available through the next adopted budget cycle.
ATTACHMENTS
Att 1 - Resolution
Att 2 - Agreement Pinnacle Petroleum Dated July 1, 2023 DRAFT
Att 3 - State of California Statewide Contract User Instructions