ADMINISTRATIVE REPORT
MEETING DATE: October 8, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: September 30, 2025
SUBJECT: Agreement with AAA Oil, Inc. dba California Fuels & Lubricants ($2,623,000) for providing truck and trailer load quantities of gasoline and diesel fuels.
RECOMMENDATION:
Staff recommend approval of the agreement.
BACKGROUND:
AAA Oil, Inc., dba California Fuels & Lubricants has been providing truck and trailer load quantities of gasoline and diesel fuels for the City of Bakersfield since 2022. The City and AAA Oil, Inc., dba California Fuels & Lubricants entered into Agreement No. 2022-207 on October 5, 2022, for the Annual Contract for Fuel Supply and Delivery Services in the amount of $3,600,000 with an initial one (1) year term and options to renew annually for four (4) consecutive one-year periods upon mutually agreeable terms.
Per the terms of Agreement No. 2022 -207, two amendments increasing the contract and/or extending the contract have been approved as follows:
Amendment 1 approved September 27, 2023; increased compensation by $2,600,000 for a revised not to exceed amount of $6,200,000 and extended term by one year to October 4, 2024. Amendment 2 approved September 25, 2024; increased compensation by $2,600,000 for a revised not to exceed amount of $8,800,000 and extended the term by one year to October 4, 2025.
Both parties mutually agree to renew the term of Agreement 2022-207, but the Agreement inadvertently expired on 10/5/2025, before additional extensions were executed.
Both parties desire to execute a new one -year agreement in the amount of $2,623,000 , which would expire October 4, 2026, to continue the supply of fuel and delivery services without the need for a new request for bid proposal since additional extensions were allowed and anticipated per the terms of Agreement No. 2022-207.
FISCAL IMPACT:
Funds are budgeted in the Equipment Management Fund for this contract.
COUNCIL GOAL:
Innovative and Efficient City Government
Reliable Infrastructure
ATTACHMENTS:
1. Partially Signed Agreement
2. Agreement No. 2022-207
3. Amendment No. 1 to Agreement No. 2022-207
4. Amendment No. 2 to Agreement No. 2022-207