TITLE
Recommendation to adopt Specifications No. ITB FM 23-183 and award contracts to Merrimac Petroleum dba Merrimac Energy Group of Long Beach, CA, Falcon Fuels, Inc., of Paramount, CA, and Pinnacle Petroleum Inc., of Huntington Beach, CA, for the purchase and delivery of petroleum fuels, in an annual aggregate amount of $4,500,000, and authorize a 15 percent contingency of $675,000, for a total annual aggregate amount not to exceed $5,175,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into contracts, including any necessary subsequent amendments; and
Increase appropriation in the Fleet Services Fund Group in the Financial Management Department by $907,000, offset by funds available generated by revenue collected from user departments through the Fleet Memorandum of Understanding (MOU). (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Merrimac Petroleum dba Merrimac Energy Group, Falcon Fuels Inc., and Pinnacle Petroleum, Inc., for the purchase and delivery of petroleum fuels. These fuels include unleaded gasoline and renewable diesel fuel to support vehicles and equipment in performing Department operations. Utilizing multiple vendors enables the Fleet Services Bureau in the Department of Financial Management to obtain needed petroleum fuels quickly and minimize downtime for vehicles and equipment used in essential operations. Petroleum fuels are used to power the City of Long Beach (City) fleet which includes emergency response and other vehicle types as well as marine vessels and helicopters. Annual costs are based on current expenditures, predicted future fuel use, and the U.S. Energy Information Administration website projections for petroleum fuels in the West Coast distribution region.
In 2022, the City purchased 682,643 gallons of unleaded f...
Click here for full text