TITLE:
title
AGREEMENT FOR DIESEL FUEL PROCUREMENT AND DELIVERY SERVICES WITH MERRIMAC PETROLEUM, INC.
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DEPARTMENT: PUBLIC WORKS/MAINTENANCE SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: ROBERT RYAN, MAINTENANCE SERVICES MANAGER, (714) 327-7499
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Approve the proposed Agreement with Merrimac Petroleum, Inc., DBA Merrimac Energy Group, 1240 Wardlow Road, Long Beach, CA 90807, for the purchase and delivery of diesel fuel in an annual amount not to exceed $360,000 based upon pricing through an Agreement with the City of Torrance, Bid No. B2019-07, for an initial term of two (2) years effective July 1, 2022.
2. Authorize the City Manager and the City Clerk to execute the agreement and future authorized amendments to the agreement.
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BACKGROUND:
The City's Public Services Department, Equipment Maintenance Section maintains a total of twelve (12) storage tanks for fuels, lubricants and hazardous waste. These tanks provide fuel storage and dispensing at Fire Stations 1, 2, 5, and 6; the Police Department and the City's Corporation Yard. The City also has ten (10) emergency generators located at various sites that require diesel fuel. The Equipment Maintenance Section maintains, monitors, coordinates fuel deliveries and oversees fueling operations in compliance with Federal, States and County regulations. The goal is to provide uninterrupted service to the City and to minimize delays in daily operations.
The City has purchased fuel from Merrimac Energy Group for diesel and delivery services since July 1, 2019, utilizing pricing provided by a cooperative agreement with the County of Orange. As the agreement term is ending on June 30, 2022, a new agreement is needed in order to provide continuity of service.
ANALYSIS:
The City will utilize the City of Torrance's agreement with Merrimac Petroleum, Inc., DBA Merrimac Energy Group (PO#2019-00000...
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