CITY COUNCIL STAFF REPORT
August 20, 2024 {{section.number}}c
4892-1041-0454 v1
AWARD AND AUTHORIZE THE CITY MANAGER TO EXECUTE A COOPERATIVE
PURCHASING SERVICE AGREEMENT WITH MANSFIELD OIL COMPANY OF GAINSVILLE, INC. FOR FUEL DELIVERY WITH RELATED SERVICES FOR A FIVE-YEAR TERM RECOMMENDATION:
In accordance with Coronado Municipal Code (CMC) Section 8.04.070 A (3), award and authorize the City Manager to execute a cooperative purchasing service agreement with Mansfield Oil Company of Gainesville, Inc., for a five-year term for as-needed fuel delivery services.
BACKGROUND:
The City of Coronado operates three fuel dispensing facilities located at the Public Services Yard, the Golf Maintenance Yard, and the Cays Fire Station. Each location has a gasoline and diesel dispensing facility. The tank sizes range from 250 gallons to 2,000 gallons. For over a decade, fuel was purchased through a cooperative agreement with SC Fuels, facilitated by the City of San Diego, which was typically re-bid every five years.
This year, the City of San Diego opted not to issue a cooperative solicitation and instead selected Mansfield Oil Company of Gainsville, Inc. (Mansfield) as their new fuel vendor through a Sourcewell Cooperative Purchasing Agreement. The City of San Diego informed our staff of this determination in late April and staff reviewed contracting options and extended the arrangement with SC fuels as a stop-gap measure.
ANALYSIS:
The City is in need of a new fuel provider and staff considered multiple options including conducting a full and open solicitation and use of cooperative purchasing. In accordance with CMC 8.04.070 A (3), staff recommends the use of Sourcewell contract number 121522-MNF.
Staff reviewed the terms, conditions, and pricing of the Mansfield contract compared to current and previous pricing for SC Fuels. It is in the City’s financial interest to contract with Mansfield Oil in part due to the storage capacity of the City’s fuel tanks (half are 750 gallons or smaller). It was determined that Mansfield’s pricing via the Sourcewell cooperative agreement would be cost effective and best meet the City’s operational requirements.
The contract solicitation process was reviewed by staff and was found to have accomplished the purpose and intent of competitive bidding requirements under State law and was not inconsistent or in conflict with any State statutes. Cooperative purchasing is a National and State approved tool used by government agencies to join with other jurisdictions to buy similar products. When purchasing cooperatively, a “lead agency” is the central purchaser for several jurisdictions.
Because these contracts tend to be for purchases or large quantities, the lead agencies are able to negotiate for lower unit costs through economics of scale.
FISCAL IMPACT:
Sufficient resources are programmed into each department budget as part of the annual operations/maintenance budgeting process. Future year budgets are informed by historical cost and utilization data as well as any known or anticipated price or market condition changes. Fuel 4892-1041-0454 v1
utilization and expenditures will be monitored and adjustments requested at mid-year, should any be warranted. Historically, the City spends between $375,000 and $400,000 annually for fuel costs. This number is dynamic based upon utilization and market pricing.
ALTERNATIVE:
The City Council may elect to reject the Cooperative Purchase Agreement with Mansfield Oil Company of Gainesville, Inc. and direct staff to issue an alternative competitive bid process for fuel delivery.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Categorically Exempt per California Environmental Quality Act (CEQA) Guideline; Class 1, Existing Facilities.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Standard Service Agreement
Submitted By: Public Services and Engineering Department / Sean Harris