REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: SZARINA LOZANO, Management Analyst II General Services Department SUBJECT ..Title Approve a Cooperative Purchase Agreement with Robert V. Jensen, Inc. of Fresno, California for the purchase of gasoline and diesel fuel for three years, with two optional one-year extensions, for an amount not-to-exceed $8,000,000 per year, plus semi-annual CPI adjustments, and a contingency of $500,000 per year (Bid File 12500405) ..Body RECOMMENDATION Staff recommends Council approve a cooperative purchase agreement with Robert V. Jensen, Inc. of Fresno, California for gasoline and diesel fuel for three years, with two optional one-year extensions, for an amount not-to-exceed $8,000,000 per year plus semi-annual CPI adjustments, and a contingency of $500,000 per year. EXECUTIVE SUMMARY The General Services Department, Fleet Management Division is seeking to establish a cooperative purchase agreement for gasoline and diesel fuel (bulk fuel) to be used by the City of Fresno municipal fleet. The fuel will be used to power vehicles and equipment that are used to conduct business throughout the City. Due to historical and anticipated costs for this product, the Purchasing Division has recommended a multi-year requirements contract be established. This contract will be awarded based on the approved piggyback process. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining approximately 3,100 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 performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. The Fleet Management Division is responsible for purchasing, storing, and dispensing bulk fuel for the City's municipal fleet. The vehicles and equipment used by City personnel are utilized to protect the public, inspect building construction, and maintenance of neighborhoods and parks. Due to the volatile nature of the gasoline and diesel industry, the General Services Department is including a contingency amount of $500,000 in the requirements contract. This will assist with unexpected fluctuations of gasoline and diesel fuel prices that are caused by regulatory changes, unanticipated market conditions, supply chain disruptions, and current events. The Fleet Management Division wishes to piggyback on the County of Fresno Bulk Fuel and Delivery contract, Request for Quotation (RFQ) Number 24-074. A total of five proposals were received for this RFQ. On July 18, 2024, the County of Fresno awarded the contract to Robert V. Jensen, Inc., with a term start of September 15, 2024. The Purchasing Division has approved the requirements contract and recommends Council approval. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDING 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 was not implemented as this is a piggyback utilizing a cooperative purchase agreement. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost bulk fuel has been included in the FY2025 adopted budget under the operations of the Fleet Management Division. Attachments: Cooperative Purchase Agreement Original Agreement 324123v1 324123v1