ADMINISTRATIVE REPORT
MEETING DATE: December 17, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: December 4, 2025
SUBJECT: Agreement with Silvas Oil Company, Inc. (not to exceed $1,500,000) for providing bobtail/partial truck load quantities of gasoline and diesel fuels.
RECOMMENDATION:
Staff recommend approval of the agreement.
BACKGROUND:
Silvas Oil Company, Inc. has been providing fuel supply and delivery services for the City of Bakersfield since 2023. The City and Silvas Oil Company, Inc. entered into Agreement No. 2023-303 on December 13, 2023, for the Annual Contract for Fuel Supply and Delivery Services in the amount of $1,550,000 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. 2023-303, two amendments increasing the contract and/or extending the contract have been approved as follows:
Amendment 1 approved November 20, 2024; increased compensation by $1,500,000 for a revised not to exceed amount of $3,050,000 and extended term by one year to December 12, 2025. Amendment 2 approved June 11, 2025; expanded scope of work to include the supply of renewable fuel type R99 or R100 as mandated by the California Air Resources Board (CARB).
Both parties mutually agree to renew the term of Agreement 2023-303, but the Agreement inadvertently expired on December 12, 2025, before additional extensions were executed.
Both parties desire to execute a new one -year agreement in the amount of $1,500,000 , which would expire December 12, 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. 2023-303.
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 (New)
2. Original Bid Response Documents Bid No. 23-24-42
3. Agreement No. 2023-303
4. Amendment No. 1 to Agreement No. 2023-303
5. Amendment No. 2 to Agreement No. 2023-303