MEETING DATE:
December 9, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9519 - AWARDING A CONTRACT TO SOUTHERN COUNTIES LUBRICANTS LLC FOR BULK FUEL AND LUBRICANT SERVICES, AND DELEGATING AUTHORITY TO THE CITY MANAGER TO NEGOTIATE, FINALIZE, AND EXECUTE THE CONTRACT AND ANY RELATED DOCUMENTS
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract to Southern Counties Lubricants, LLC for the purchase and delivery of bulk fuel and lubricant services in an amount not to exceed $7,500,000 for a five-year term, and authorizing the City Manager to negotiate, finalize, and execute the contract and related documents.
Body
Board or Commission Action
Not Applicable
Executive Summary
The Public Works Department manages the City’s bulk fuel and lubricant needs that support operational and public safety functions. Fuel is primarily supplied through the Public Works Yard fuel island, with supplemental diesel dispensing at Fire Station 2 and Fire Station 4. These facilities collectively support approximately 350,000 gallons of annual gasoline and diesel use for City departments and partner agencies.
Approval of this item will provide continued, reliable, and cost-effective fuel and lubricant services under a competitively awarded contract.
Discussion
The City provides gasoline and diesel fueling through its primary fuel island at the Public Works Yard and supplemental diesel pumps at Fire Station 2 and Fire Station 4. These sites support fueling needs for City operations and partner agencies, including the San Diego County Sheriff’s Department and the San Marcos Unified School District.
In accordance with San Marcos Municipal Code Section 2.30.100, the City issued a Request for Proposals (PW RFP 25-07) for bulk fuel and lubricant services on September 16, 2025, with proposals due October 03, 2025. Three proposals were received.
Staff evaluated the proposals and Southern Counties Lubricants, LLC was identified as the most qualified, responsive, and responsible proposer based on pricing, delivery reliability, and service capability.
Pricing in the proposed contract is based on Oil Price Information Service (OPIS) index rates, which ensures transparent, market-based pricing. The agreement also provides Commercial Fueling Network (CFN) access for authorized staff when off-site fueling is necessary.
Staff recommends that the City Council approve the award of a five-year as needed contract to Southern Counties Lubricants, LLC for bulk fuel and lubricant services in an amount not to exceed $1,500,000 annually, and that it authorize the City Manager to negotiate, finalize, and execute the contract and all related documents.
Environmental Review
The proposed contract does not have the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment; it therefore does not constitute a “project” as defined by Public Resources Section 21065, and is exempt from CEQA or other environmental review pursuant to CEQA Guidelines section 15061(b)(3).
Fiscal Impact
Funding to support this agreement was appropriated in the city’s 2025-2026 General Fund operating budget. The awarded contract does not commit the city to any future expenditure. The total contract amount is not to exceed $7,500,000 over the five-year term.
Attachment(s)
Resolution
Prepared by: Aaron Brothers, Fleet Supervisor
Submitted by: Aaron Brothers, Fleet Supervisor
Reviewed by: Tim Selke, Public Works Director
Approved by: Michelle Bender, City Manager