TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bernard Molloy, Fire Chief and Anthony Conrad, Police Chief
PREPARED BY: Diana Lozano, Senior Management Analyst - Fire and Dawnn
Jackson, Management Analyst - Police
SUBJECT: SC Commercial LLC Fuel Delivery Agreement for Murrieta Fire & Rescue and Murrieta Police Department
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RECOMMENDATION
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Approve an agreement with SC Commercial, LLC for fuel delivery to Murrieta Fire & Rescue Fire Station and Murrieta Police Department fuel tanks;
Approve the agreement amount not to exceed $2,650,000; and
Authorize the Mayor to execute the agreement.
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PRIOR ACTION/VOTE
On December 6, 2016, the City Council Adopted Resolution No.16-3665, approving an Agreement with The SoCo Group, Inc. for bulk fuel delivery services (Vote 5-0).
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
BACKGROUND
Beginning in 1996 for Murrieta Fire & Rescue (MFR) and in 2012 for Murrieta Police Department (PD) city-owned emergency vehicles are fueled at tanks located at four of the Fire stations and the Police station. This ensures our emergency vehicles are fueled and ready for emergencies at secured fuel-filling stations. These tanks are monitored by both the police and fire department staff and are provided regular maintenance from a third-party vendor (Jauregui & Culver) to ensure they meet all State requirements related to safety.
To continue this practice MFR and Murrieta PD are requesting to establish an agreement with SC Commercial, LLC (SC) to deliver fuel to the MFR’s fire station and Murrieta PD fuel tanks. Riverside County awarded SC a contract for these services through a competitive bidding process, with pricing valid until March 31, 2027 (Exhibit A of Attachment 1).
In accordance with Municipal Code section 3.08.295, Cooperative Purchasing, the City Council has the authority to join with other public and quasi-public agencies in cooperative purchasing plans or programs for the purchase of supplies and services.
Staff seeks to use this contract to satisfy the bidding requirements and execute an agreement with SC. The terms of the proposed agreement are consistent with the terms in the Riverside County agreement.
The term of the agreement will be until March 31, 2027.
FISCAL IMPACT
The Agreement will not exceed $2,650,000, which includes the estimated amount necessary for Police ($1,850,000) and Fire ($800,000) over the term of the agreement through March 31, 2027. The Murrieta PD has $400,000 budgeted for fuel in Fiscal Year 2023/24 and $425,000 budgeted in Fiscal Year 2024/25, in account number 1103120-62220. MFR has $144,000 budgeted for fuel in Fiscal Year 2023/24 and $151,200 budgeted in Fiscal Year 2024/25 in account number 1513520-62220. The budget for subsequent fiscal years will be included in the normal biennial budget process.
ATTACHMENTS
1. SC Commercial, LLC Fuel Delivery Agreement