REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: SZARINA LOZANO, Management Analyst II General Services Department SUBJECT ..Title Award a requirements contract for municipal fleet motor oils and lubricants to Van De Pol Petroleum of Fresno, California for three years, with three optional one-year extensions, for an amount not-to-exceed $134,408 per year plus annual CPI adjustments (Bid File 12400150). ..Body RECOMMENDATION Staff recommends Council approve the award of a requirements contract for municipal fleet motor oils and lubricants to Van De Pol Petroleum of Fresno, California for three years, with three optional one-year extensions, for an amount not-to-exceed $134,408 per year plus annual CPI adjustments. EXECUTIVE SUMMARY The General Services Department, Fleet Management Division, requests approval to establish a requirements contract for the purchase of motor oils and lubricants. This contract will stabilize the supply and pricing for the complete range of motor oils and lubricants used by the City's municipal fleet. Having readily available resources is essential to the work of the General Services Department, Fleet Management Division, to ensure vehicles and equipment for the municipal fleet are operational. Due to historical and anticipated costs for motor oils and lubricants, the Purchasing Division has recommended a multi-year requirements contract be established to conform to purchasing best practices. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining approximately 2,600 active vehicles and equipment for the City of Fresno. Fleet Management serves the City departments by providing reliable like new transportation to support their needs and service responsibilities. This is done by scheduling and performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. In the municipal fleet, motor oils and lubricants which include engine oil, automatic transmission fluid, and hydraulic oil are utilized in a variety of vehicles and equipment. Performing preventative maintenance such as oil changes helps prevent accumulation of sludge, wear between moving parts, and corrosion. Motor oils and lubricants are essential to the long-term functionality of vehicles and equipment. Without the regular replacement of these products, damage would occur, compromising performance and lifespan. Solicitations for competitive bids for motor oils and lubricants were advertised on August 25, 2023. On September 26, 2023, five bids were received at the public bid opening. Van De Pol Petroleum of Fresno, California was determined to be the lowest responsive bidder with a bid price of $373,225 for three years, not-to-exceed $124,408 annually. As the bid quantities were based upon historical averages of motor oils and lubricants, the General Services Department is recommending an additional $10,000 annual contingency be included in the award to account for the expected growth in the municipal fleet and annual variations in the consumption of motor oils and lubricants. Therefore, the General Services Department recommends an award value not-to-exceed $134,408 annually. The Purchasing Division has approved this contract and recommends Council approval. City Attorney has approved the contract as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is applicable to this award, and Van De Pol Petroleum of Fresno, California is a local business pursuant to FMC 4-108 FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of motor oils and lubricants has been included in the FY2024 adopted budget under the operations of the Fleet Management Division. Attachments: Bid Evaluation