City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 13, 2023 FROM: FIRE DEPARTMENT WARDS: ALL
SUBJECT: CHANGE ORDER AUTHORITY TO INCREASE PURCHASE ORDER NO. 231712 WITH SC COMMERCIAL, LLC IN THE AMOUNT OF $170,000 FOR THE PURCHASE AND DELIVERY OF FUEL TO THE CITY FIRE STATIONS FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023 IN THE TOTAL AMOUNT OF $424,620 ISSUES:
Approve the change order authority to increase Purchase Order No. 231712 with SC Commercial, LLC of Orange, California, in the amount of $170,000 for the purchase and delivery of fuel to the City Fire Stations for the period of July 1, 2022 through June 30, 2023 in the total amount of $424,620.
RECOMMENDATIONS:
That the City Council:
Approve the change order authority to increase Purchase Order No. 231712 with SC Commercial, LLC of Orange, California, by $170,000, for a total amount of $424,620 for the purchase and delivery of fuel to the City Fire Stations for the period of July 1, 2022 through June 30, 2023; and Authorize the City Manager or designee to execute any purchase orders, agreements, and other documents effecting the purchase.
BACKGROUND:
The City of Riverside Fire Department (RFD) maintains the fuel pumps at 14 Fire Stations which supply fuel to the Department. The fire station fuel tanks hold between 500 to 1,000 gallons each, and require frequent refilling. On November 24, 2021, the Riverside County Department of Purchasing and Fleet Services issued Request for Proposal, RIVCO-2022-RFP-0000341, for the purchase and delivery of Unleaded Fuel and Ultra Low Sulfur Diesel Fuel. On April 1, 2022, the County of Riverside entered into a contract with SC Commercial, LLC, PSA-0004078, for a five-year term, renewed annually, ending March 31, 2027.
DISCUSSION:
The Envision Riverside 2025 Strategic Plan identifies responsibilities related to the expenditure of public funds and ensures accountable financial resources. Therefore, regarding the City’s goals, the Riverside Fire Department would like to utilize SC Fuel, of Orange, California, to purchase and deliver fuel to the City Fire Stations in accordance with Purchasing Resolution 23914, Section 602 (h).
On May 23, 2022, SC Commercial, LLC agreed to extend current pricing, which is based on the Colton Oil Price Information Service (OPIS) Daily Unbranded Rack Average Price with CAR, at the current level of services, and the same or better terms and conditions as offered to the County of Riverside through March 31, 2027.
Per Purchasing Resolution 23914, Section 1104(c) states, “Modifications to a Purchase Order shall be made only by Change Order … Change Orders which cumulatively exceed the following will require Awarding Entity approval: c) 10% of the original contract price for Contracts and/or Purchase Orders previously approved by the Awarding Entity and the total Change Order amount will not exceed $150,000.
The Purchasing Manager concurs that the recommendation complies with Purchasing Resolution 23914, Section 1104 (c).
STRATEGIC PLAN ALIGNMENT:
This item contributes to the City’s Strategic Priority No. 2 – Community Well-Being and Goal No. 2.4 – Support programs and innovations that enhance community safety, encourage neighborhood engagement, and build public trust.
This item aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – Fuel for the Fire Stations allows the Fire Department to deploy its apparatus into the community providing emergency services.
Equity – The Fire Department provides first responder services to all residents in the city. Purchasing fuel for the fire apparatus will assist in the achievement of this goal by ensuring that personnel can enhance community safety.
Fiscal Responsibility – The Fire Department this purchase in accordance with Purchasing Resolution 23914, Section 602(h). This contributes to the City’s financial health by ensuring the city will be receiving the best pricing.
Innovation – The Fire Department deploys a wide range of vehicles, while providing emergency services to meet the community’s current and future needs.
Sustainability & Resiliency – The purchase is to ensure the Fire Department has the ability to provide first responder services in the present and future, while adapting to the growing needs of the community.
FISCAL IMPACT:
The total fiscal impact of the action is $170,000. Sufficient funds are budgeted and available in the General Fund, Fire-Operations, Motor Fuel account number 3510000-426300, for the purchase and delivery of fuel. Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Michael D. Moore, Fire Chief
Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/City Treasurer Approved by: Mike Futrell, City Manager
Approved as to form: Phaedra Norton, City Attorney
Attachment: Mid-Cycle Budget Adjustments
SC Fuel Supp – Page 2