CC Resolution 13142 - Fuel Delivery Services RESOLUTION NO. 13142
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL 1) APPROVING THE
SPECIFICATIONS, AND AUTHORIZING THE SOLICITATION OF BIDS, FOR FUEL DELIVERY
SERVICES; 2) APPROVING THE SUBSEQUENT AWARD OF A SERVICE CONTRACT, IN
AN AMOUNT NOT TO EXCEED $210,000, TO THE LOWEST, RESPONSIVE BIDDER FOR A
PERIOD OF UP TO ONE YEAR, PLUS OPTIONS FOR THE CITY TO RENEW UP TO FOUR
ADDITIONAL ONE-YEAR CONTRACTS, FOR A TOTAL OF FIVE YEARS, AND
SUBSEQUENT CONTRACT AMOUNTS NOT TO EXCEED THE AMOUNT OF FUNDS
PROGRAMMED IN THE PUBLIC WORKS VEHICLE AND EQUIPMENT MAINTENANCE
OPERATING BUDGET (641.750.7426) FOR EACH FISCAL YEAR DURING THAT FIVE-YEAR
TERM LIMIT; AND 3) THE CITY MANAGER TO EXECUTE SAID AGREEMENT AS
SPECIFIED IN CAMPBELL MUNICIPAL CODE SECTION 3.20.100
WHEREAS, the City of Campbell owns and operates two underground fuel tanks located at the
Campbell Police Department and the City's Service Center (Service Yard), both of which dispense
unleaded gasoline and diesel fuel for the City's fleet vehicles and other gas-powered equipment
and machinery; and
WHEREAS, an annual service contract has proven to be the most cost-effective option to meet the
City's fueling needs; and
WHEREAS, each fiscal year, staff performs a detailed cost analysis to identify the current fueling
rates for this area of the market and generate price estimates used for budgetary and contractual
planning purposes; and
WHEREAS, during those efforts, the base price per gallon is computed using the average daily
price charged by all fuel providers operating from the San Jose terminals as set forth in the Oil
Price Information Service (OPIS) Pad 4/5 Report; with the low bidder determined by the margin
(mark-up/mark-down) above or below those prices; and
WHEREAS, based on those figures, funds are programmed each fiscal year in the Public Works
Vehicle and Equipment Maintenance Operating Budget (641.750.7426) for the costs associated
with the supply and delivery of fuel and the annual contract awarded for these services; and
WHEREAS, in 2019, the City awarded a one-year service contract to Western States Oil, an offsite
fuel company, who—under the terms of the executed service agreement—would supply and deliver
fuel to the City's two fueling locations through the end of FY 20, plus the option to renew four
additional one-year service contracts, for a total of up to five years with services to conclude at the
end ofFY24 ; and
WHEREAS, with the Western States Oil contract set to expire in June of 2024, a new contract will
be required to continue these services for the current fiscal year and beyond; and
WHEREAS, to facilitate the timely award of a multi-year contract before the current one expires,
staff has prepared a scope of work and specifications to be advertised with a request for bids to
solicit supply and deliveryservices from qualified fueling vendors; and
WHEREAS, staff is requesting that the City Council approve the specifications and authorize staff
to solicit bids from qualified vendors for services related to the furnishment and delivery of fuel as
programmed in the Vehicle and Equipment Maintenance Operating Budget for FY 25; and
WHEREAS, in accordance with the City's purchasing guidelines, staff will complete a,
comprehensive evaluation of the bids received and select a vendor based on the results from the
lowest, responsive bidder and their qualifications to provide these services; and
WHEREAS, staff is also requesting the City Council's approval to award a one-year service
contract to the lowest, responsive bidder, in an amount not to exceed $210,000, plus options for
the City to renew up to four additional one-year service contracts, for a total of up to five years, and
subsequent contract amounts not to exceed the amount programmed in the Vehicle and Equipment
Maintenance Operating Budget for each fiscal year during those terms; and
WHEREAS, staff requests that the City Council authorize the City Manager to execute said
agreement as specified in Campbell Municipal Code Section 3.20.100; and
WHEREAS, the cost associated with this action will be $210,000 in FY 25, however, sufficient
funding in this proposed amount has been programmed in the Proposed Public Works Vehicle and
Equipment Maintenance Operating Budget (641.750.7426), and upon budget approval, will be
available to award a contract and implement services during FY 25; and
WHEREAS, the authority to renew four additional one-year service contracts, for a total of five
years, is also consistent with the agreement's terms of service and the option to renew pending the
City's fueling needs and amount of funds available in the Public Works Vehicle and Equipment
Maintenance Operating Budget; and
WHEREAS, if required, budget adjustments will be made accordingly to accommodate the service
needs of future contract years and to offset any impacts on the budget at that time.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell hereby 1)
approves the specifications, and authorizes the solicitation of bids, for fuel delivery services; 2)
approve the subsequent award of a service contract to the lowest, responsive bidder, in an amount
not to exceed $210,000, for a period of one year, plus options for the City to renew up to four
additional one-year contracts, for a total of up to five years, and subsequent contract amounts not
to exceed the amount of funds programmed in the Public Works Vehicle and Equipment
Maintenance Operating Budget (641.750.7426) for each fiscal year during that five-year term limit;
and 3) authorizing the City Manager to execute said agreement as specified in Campbell Municipal
Code Section 3.20.100.
PASSED AND ADOPTED this 16th day of April, 2024, by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
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Susan M. Lan&y, ayor
ATTEST:
Andrea S ers, City Clerk •