City of Long Beach - File #: 23-0128

• File #: 23-0128
• Version: 1
• Name: FM - Purchase of petroleum products
• Type: Contract
• Status: CCIS
• File created: 1/26/2023
• In control: City Council
• On agenda: 2/14/2023
• Final action: 2/14/2023
• Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35901 with Southern Counties Oil Co., dba SC Fuels, of Orange, CA, Contract No. 35902 with Patten Energy Enterprises, Inc., of Los Angeles, CA, and Contract No. 35910 with Cummins, Inc., dba Cummins Sales and Service, of Columbus, IN, for the purchase of petroleum products, to increase the annual aggregate contract amount by $100,000, and authorize a 15 percent contingency in the amount of $52,500, for a new total annual aggregate amount not to exceed $402,500; and Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $100,000, offset by funds available generated by revenue received through the Fleet Memorandum of Understanding. (Citywide)
• Sponsors: Financial Management
• Related files: 35902_002, 35901_002, 35910_001, 35901_001, 35902_001

Date	Ver.	Action By	Action	Result
2/14/2023	1	City Council	approve recommendation	Pass

TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35901 with Southern Counties Oil Co., dba SC Fuels, of Orange, CA, Contract No. 35902 with Patten Energy Enterprises, Inc., of Los Angeles, CA, and Contract No. 35910 with Cummins, Inc., dba Cummins Sales and Service, of Columbus, IN, for the purchase of petroleum products, to increase the annual aggregate contract amount by $100,000, and authorize a 15 percent contingency in the amount of $52,500, for a new total annual aggregate amount not to exceed $402,500; and

Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $100,000, offset by funds available generated by revenue received through the Fleet Memorandum of Understanding. (Citywide)

DISCUSSION
City Council approval is requested to amend Contract No. 35901 with Southern Counties Oil Co, dba SC Fuels, Contract No. 35902 with Patten Energy Enterprises, Inc., and Contract No. 35910 with Cummins, Inc., dba Cummins Sales and Service, to increase the annual aggregate contract amount to $402,500 to continue the furnishing and delivery of petroleum products for the City of Long Beach’s (City) vehicle and equipment fleet. These petroleum products, including motor oils and hydraulic fluids, help support City vehicles and equipment in performing Department operations. Industry-wide cost increases for commodities like motor oil, hydraulic and other petroleum-based products necessitate additional funds.

The existing contracts were awarded by the City Council in May 2021 for two years, with the option to renew for three additional years. The City is currently in the second year of the contracts. Utilizing multiple vendors will enable the Fleet Services Bureau (Fleet) in the Department of Financial Management to obtain needed petroleum products quickly and minimize downtime for vehicles and equipment used in essential operations. Each year, Fleet uses app...