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HomeMy WebLinkAbout _ 4.11(d)--Award Bid Schedule No. 5561 - Bulk Fuel Delivery � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: February 4, 2025 FROM: Michael Webb, Public Works ITEIVI NO. 4.11(d) Director ***APPROVED BY*** � �c a� � �bEi� 'c�r�Cs I7�reetcsr tf2�r'2t}`?� r5�' �p�i��,C�i �r� �, l,f?7�'2{�?. mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(d)--Award Bid Schedule No. 5561, Bulk Fuel Delivery Purchases Recommendation Award Bid Schedule No. 5561 for bulk fuel delivery to Ed Staub & Sons for the period of March 1, 2025, through February 28, 2028; and authorize the Purchasing Officer to extend the contract annually for two additional one-year periods through February 28, 2030. Fiscal Impact During the budget process, Public Works and the Redding Fire Department account for fuel expenses for a11 types of fuel purchases. The markup for the purchase cost of bulk fuel would change from $0109 to $0.250 for the West Central Landfill location, $0.109 to $0.300 for Clear Creek Waste Water Treatment Plant, and $0.089 to $0.250 for the Transfer Station. Alte�native Action The City Council (Council) may ehoose not tio award the bid and utilize spot buys as needed. Adoption of this alternative would require additional expenditure of staff time and would likely result in increased cost of fuel. Background/Analysis The City of Redding (City) salicited bids for bulk fuel delivery from eleven potential vendors and received two bids. The low bid was from Ed Staub and Sons with a cost of$0.250 for the West Central Landfill location, $0.300 for the Clear Creek Waste Water Treatment Plant, $0.250 for the Transfer Station, and $0.539 for Redding Fire Station 7, which represents a markup above the wholesale cost per gallon as published daily by the Oil Price Information Service (OPIS), the established industry standard for research and publication of wholesale fuel costs. Report to Redding City Council January 29,2025 Re: 4.12(d)--Award Bid Schedule No. 5561 -Bulk Fuel Delivery Page 2 The bid from Ed Staub and Sons for small-quantity fuel deliveries is as follows: a cost of$1.59 for 50 gallons or 1ess, $0.49 for 51-250 gallons, $0.30 for 251-500 gallons, and $0.25 for 501 gallons or more, above the wholesale cost per gallon as published daily by OPIS. Deliveries of small quantities occur on a rare occasion and are typically for annual testing of generators located at City facilities. Environmental Review This activity is not a project as defined by the California Environmental Quality Act, and no action is required. Council P�^iority/City MccnageN Goccls • This is a routine operational item. Attachments ^Bid Tab 5561 �I`I'1�(�F R�C�UIh�� PtJRCHASING 171VISION-T�IBULATION OF'BIDS BID: Furnish and Deliver Bulk Fuel Interstate Oil Co Ed Staub & Sons BID SCHEDU�E NO. DATE OF OPENING 5561 Friday, January 10, 2025 Jim Schmitz TIME OF OPENING M. Webb 3:00 P.M. �rk�p ���r 9m30 �r� ���� �A Ch��� p�r g�ll�r� PRICE PRICE Markup -West Central Landfill $0.359 $0.250 Markup - Clear Creek WVIITP $0.339 $0.300 Markup -S/W Transfer Station $0.329 $0.250 Markup - Redding Fire Station 7 $0.779 $0.539 Small Quantity Deliveries Unleaded - 50 gallons or less $1.25 $1.59 Diesel -51-250 gallons $0.75 $0.49 Diesel -251-500 gallons $0.70 $0.30 Diesel -501 gallons or more $0.45 $0.25 Additional Fees Listed N/A N/A