MEETING DATE:
MAY 9, 2023
SUBJECT:
Title
RESOLUTION NO. 2023-9133 - AMENDING BULK FUEL SERVICES CONTRACT WITH SOUTHERN COUNTIES LUBRICANTS, LLC AND AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE CONTRACT AMENDMENT AND RELATED DOCUMENTS
Body
Recommendation
Recommendation
ADOPT a resolution amending the bulk fuel services contract with Southern Counties Lubricants, LLC and authorizing the City Manager or delegated designee to finalize and execute the contract amendment and all related documents.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Good Governance
Relevant Department Goal
Not applicable
Executive Summary
The City spends approximately $1 million per year on fuel and lubricants. Approximately 70% of the fuel procured by the City is passed through to San Diego County (the Sheriff's Department) and San Marcos Unified School District. Staff recommends amending the existing contract to ensure adequate contract capacity through the end of the contract term.
Discussion
On July 20, 2020, a request for proposals was publically solicited to provide bulk fuel and lubricant delivery services. Three proposals were received. After review of the proposals, Southern Counties Lubricants, LLC was rated the most qualified, responsive and responsible proposer. On September 20, 2020, City Council awarded Contract No. 6452 to Southern Counties Lubricants, LLC which was executed in the amount of $3.25 million for a term of five years.
Fuel cost is based on the Oil Price Information Service (OPIS) daily low rack average plus a stated not to exceed amount, which establishes the cost per gallon of fuel. The average cost per gallon of fuel at the time of contract award was $2.73. The average cost per gallon is now $4.16. This substantial increase has resulted in exhaustion of the majority of the contract funds much sooner than the contact expiration of November 1, 2025. Sta...
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