AGREEMENT FOR FUEL CONTRACT WITH PINNACLE PETROLEUM, INC.
THIS AGREEMENT is effective July 1, 2023 by and between City of San Pablo (“City”) and PINNACLE PETROLEUM, INC., DIR Registration # 1000003013, (FEIN # 33‐ 0649703), 16651 Gemini Lane, Huntington Beach, CA 92647 (“Vendor”; collectively the “parties”).
WITNESSETH
WHEREAS, the State of California (“State”) previously contracted with Vendor to provide bulk fuel (regular unleaded gasoline, ethanol, and certain types of diesel) at a negotiated pricing scheme; and
WHEREAS, State law and section 3.16.110(E) of the City’s Municipal Code allow the City to make purchases from a vendor at a price established by competitive bidding by the State; and WHEREAS, the City intends to contract with Vendor pursuant to the State of California Contract No. 1‐23‐91‐02B, wherein the State has competitively bid and purchased gasoline and diesel, to serve the City’s maintenance and police equipment.
IN CONSIDERATION of the mutual covenants and conditions contained herein, and other good and valuable consideration acknowledged by both parties, the parties hereto do covenant and agree as follows:
1. Definitions. As used herein, the following terms shall have the following meanings:
1.1 Agreement – This Agreement, as it may from time to time be amended or modified pursuant to its terms and provisions.
1.2 Vendor – Pinnacle Petroleum, Inc., with offices at: 16651 Gemini Lane, Huntington Beach, CA 92647; whose telephone number is (714) 841‐8877.
1.3 City – City of San Pablo address: 1000 Gateway Avenue, San Pablo, Ca. 94806, a general law city in the State of California, and whose telephone number is 510 215‐3079.
1.4 Piggyback Agreement – State of California Contract No. 1‐23‐91‐02B.
2. Agreement. Subject to the terms of the Piggyback Agreement, as modified by this Agreement, Vendor agrees to sell to City, and City agrees to non‐exclusively buy from Vendor, the items set forth below:
a. Gasoline Fuel
b. Diesel Fuel
3. Purchase Price. The purchase price(s) is set forth in Attachment A (Contract Pricing) to the Piggyback Agreement.
3.1 For fuel deliveries made by Vendor to CITY during Fiscal Year 2023/24, from July 1, 2023 through June 30, 2024, total payments shall not exceed Two Hundred Fifty‐Seven Thousand Five Hundred Dollars ($257,500).
3.2 For fuel deliveries made by Vendor to CITY during Fiscal Year 2024/25, from July 1, 2024 through June 30, 2025, total payments shall not exceed Two Hundred Sixty‐Five Thousand Two Hundred Twenty‐Five Dollars ($265,225).
3.3 For fuel deliveries made by Vendor to CITY during Fiscal Year 2025/26, from July 1, 2025 through March 1, 2026, total payments shall not exceed One Hundred Eighty‐Two Thousand One Hundred Twenty‐One Dollars ($182,121).
3.4 Total compensation under this contract shall not exceed Seven Hundred Twenty‐ Seven Hundred Four Thousand, Eight Hundred Forty‐Six Dollars ($704,846) for fuel deliveries made during the entire term of the contract, from July 1, 2023 through March 1, 2026.
4. Time and Performance. Fuel delivery to the City shall be made next day (within 24 hours) of the City’s call for additional fuel. The Dispatch Telephone Number for Pinnacle Petroleum, Inc.’s deliveries is: (714) 841‐877 or After Hours (714) 841‐8877 (or order can be placed via email at [email protected].
5. Insurance. With respect to performance of work under this Agreement, Vendor shall maintain and shall require all of its subcontractors to maintain insurance as described below. Vendor’s insurance is primary and Vendor shall provide an additional insured endorsement on the general liability and automobile liability policies naming the City, its officers, officials, employees, and volunteers as additional insureds.
a. Commercial General Liability insurance. The CGL policy must be issued on an occurrence basis, written on a comprehensive general liability form (CG 00 01), and must include coverage for liability arising from the operations of Vendor or its subconsultants or subcontractors in the performance of the Agreement, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits of at least $2,000,000.00 per occurrence. The CGL coverage may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or umbrella policies, provided each such policy complies with the requirements set forth herein. Said policy shall include a Railroads CG 24 17 endorsement removing the exclusion of coverage on or near railroad tracks. b.
Automobile Liability insurance. The automobile liability policy must provide coverage of at least $1,000,000.00 combined single‐limit per accident for bodily injury, death or property damage. This coverage may also be provided on the Contractors Pollution Liability policy with a limit of no less than $1,000,000. c. Workers’ Compensation insurance. The policy must comply with the requirements of the California Workers’ Compensation Insurance and Safety Act, providing coverage of at least $1,000,000.00, or as otherwise required by law.
6. Terms and Terminations. The term of this Agreement shall begin July 1, 2023 and shall expire on March 1, 2026 unless terminated in writing prior to that date.
7. Specific Amendments to Piggyback Agreement. As provided in section 2 above, the parties agree to the terms of the Piggyback Agreement in its entirety except as set forth in this Agreement.
8. Invoices. Vendor shall email invoices on a monthly basis to:
Michele Yost, Senior Administrative Clerk, Public Works Department:
Accounts Payable Contract Person: Kathleen Bradley, Fiscal Clerk, Finance Department: [email protected]
9. Default. This
parties recognize that time is of the essence with respect to performance under this Agreement and that this Agreement is critical to the City. The City reserves the right to terminate this Agreement immediately either in whole or in part.
10. Notice.
All notices, requests, contents, and other communications requited or permitted under this agreement shall be in writing and shall be (as elected by the person giving such notice): (a) hand delivered by messenger or service; or (b) mailed by Registered or Certified Mail (postage pre‐paid) to the addresses listed in section 1 above.
11. COVID‐19 Pandemic. Vendor shall comply with current COVID‐19 health orders issued by Contra Costa County Health Services (found at:
https://www.coronavirus.cchealth.org/health‐orders), and shall contact City staff immediately if there is any issue with compliance. In addition, the City requires all contractors providing services at City facilities or City worksites to comply with all current City COVID policies on‐site.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates indicated below.
VENDOR: PINNACLE PETROLEUM, INC.
By: Date:
Name:
Title:
CITY OF SAN PABLO (CITY)
By: Date:
Name: Matt Rodriguez
Title: City Manager
APPROVED
AS TO FORM:
By: Date:
Name: Teresa Stricker
Title: City Attorney