City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01116 6/17/2025 Item 5.
Contract Supplement No. 6: Fuel Site Testing, Maintenance, and Repair [Published for 10-Day Review 06/06/2025]
File ID: 2025-01116
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the Interim City Manager or designee to execute Supplement No. 6 to City Agreement No. 2021-1384 with Kaiser Commercial Petroleum for an amount not to exceed $300,000, bringing the agreement’s total not-to-exceed amount to $1,125,000.
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Contract Supplement No. 6
Description/Analysis
Issue Detail:
The Department of Public Works, Fleet Management Division manages the City’s ten fuel sites, which house a total of 40 fuel tanks. To properly maintain these sites, there is an ongoing requirement to test, maintain, and repair them as needed. In October 2021, bid B22153311003 was solicited, and the winning bidder was Kaiser Commercial Petroleum, awarded contract C2021-1384.
The original award amount was $750,000, approved with Motion No. 2021-0356 on December 14, 2021.
In January 2025, Supplement No. 5 was completed to increase the contract by the 10% contingency rate. The original rate of spend was predicted at $150,000 per year. However, due to increased prices and aging infrastructure, the annual need has increased, and there is not enough funding to fulfill the entire contract term. Staff recommend increasing the contract by $300,000 for a new not-to- exceed amount of $1,125,000, which should cover the remaining term of the contract.
File ID: 2025-01116 6/17/2025 Item 5.
Policy Considerations: The recommendation in this report is in accordance with City Code Chapter
3.56 and the Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item shall be made available to the public at least ten (10) days prior to council action. This item was published for a 10-day review on June 6, 2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of goods and services and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: On October 21, 2021, the Department of Public Works, Fleet Management Division, in accordance with City Code Chapter 3.56, issued a Request for Bid (RFB) for Fuel Site Testing, Maintenance, and Repairs. Kaiser Commercial Petroleum was deemed the lowest responsive and responsible bidder. The bid amount for a one-year period represents the total for the quantities selected for bid evaluation purposes only. The recommended contract amount was $750,000, reflecting the amount expected to be expended over the potential five-year contract period.
Due to escalating prices and aging infrastructure, the projection fell short, and additional funds are needed to cover the entirety of the contract period, which will sunset in December 2026.
Financial Considerations: Sufficient funding is available in the Department of Public Works Fiscal Year (FY) 2024/25 operating budget (Fleet Fund, Fund 6501). Purchases made after June 30, 2025, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Kaiser Commercial Petroleum is an LBE vendor.