Westminster City Council
SUBJECT
Title
Purchase and Delivery of Diesel Fuel and Gasoline for the City Fleet.
End
From: Jake Ngo, Public Works Director/City Engineer
Requested by: Administration
Prepared by: Scott Maestrejuan, Garage Superintendent
____________________________________________________________
RECOMMENDED ACTION
Recommendation
A. Award the bid to SC Fuels; and
B. Authorize staff to approve a Purchase Order issued to SC Fuels in the yearly not-to-exceed amount of $475,000 for an initial one-year term with four renewable years for the purchase and delivery of diesel fuel and gasoline for the city fleet; and
C. Reject all other bids.
end
BACKGROUND
SC Fuels is the current supplier for the City’s diesel fuel and gasoline. The renewable contract with SC Fuels expires June 30, 2025. The Fleet Division solicited formal bids for the Purchase and Delivery of Diesel Fuel and Gasoline for city vehicles. The City received the following two responses, which were opened by the City Clerk’s Office on Monday, April 21, 2025:
|
1. |
SC Fuels |
Gas |
12.28 cpg discount below OPIS rack price* |
|
|
1800 W. Katella Ave. |
Diesel |
6.28 cpg discount below OPIS rack price* |
|
|
Suite 400 |
|
|
|
|
Orange, CA 92867 |
|
|
|
2. |
AAA Oil Inc. |
Gas |
01.43 cpg discount below OPIS rack price* |
|
|
11621 Westminster Ave |
Diesel |
01.40 cpg above OPIS rack price* |
|
|
Garden Grove, CA 92843 |
|
|
|
|
|
|
*cpg = cents per gallon
OPIS = Oilfield Publication Information Service
The prices listed above are the amounts, in cents per gallon, above or below the OPIS rack price that the City will be charged per gallon of fuel.
The OPIS price per gallon can change multiple times per day, as fuel is a publicly traded commodity. As a result, no vendor will offer a fixed per-gallon price for a 12-month period.
This unit-priced contract is for an initial one year and contains an annual renewal clause for up to an additional four years at the discretion of the City Manager, and is subject to continued price competitiveness, budget availability, and performance. The proposed authorization would be a not-to-exceed amount of $475,000 per fiscal year.
FISCAL IMPACT
Funds for the contract with SC Fuels budgeted in the FY 2025-26 budget in the Motorpool Fund, Account No. 58000-44000. No additional appropriation is required for this action.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Staff recommends authorizing staff to issue a Purchase Order issued to SC Fuels in the yearly maximum of $475,000, for an initial one-year contract with up to four renewable years for the Purchase and Delivery of Diesel Fuel and Gasoline for the city fleet.
ATTACHMENTS
1. Contractor’s Proposal
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager