AgdaPkt 2016-10-24 Closed and Joint SA PFA HHCC

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8.1.D. - Page 20 BOARD OF EDUCATION Attachment: Discussion 19 PALO ALTO UNIFIED SCHOOL DISTRICT Date: 05.10.16 TO: Glenn "Max" McGee, Superintendent FROM: Cathy Mak, Chief Business Officer SUBJECT: Authorization to Award Contract for Unleaded & Diesel Fuel BACKGROUND Bids were solicited from fuel distributors to perform this service. The base fuel prices will be based on the "Oil Pricing Information Service" (OPIS)for the San Jose area wholesale pricing. OPIS is the world's most recognized comprehensive database of the U.S. wholesale petroleum prices and other key markets. All bidders were to bid a guaranteed profit margin that shall not change during the contract period of three years, with two possible one-year extensions. The District estimates its yearly consumption to be approximately 39,950 gallons of unleaded and 12,510 gallons of diesel. PROPOSAL Bids were received from three contractors at 3:00 pm, on April 25, 2016. The results are shown below: Unleaded Diesel Contractor Profit Margin/Gallon Profit Margin/Gallon Valley Oil Co. $0.035 $0.065 SC Fuel $0.46654 $0.16562 Western States Oil $0.055 $0.055 Valley Oil Co. was determined to the lowest responsible bidder. Valley Oil Co. is the current supplier of fuel to the District, and provides outstanding service. They have been consistent and reliable. Staff recommends that Valley Oil Co. be awarded a contract for the Unleaded and Diesel Fuel. FISCAL IMPACT Fuel costs are included in the Transportation Department's annual authorized budget. The estimate for 2015-16 is $200,000. RECOMMENDATION Pending discussion at this meeting, it will be recommended that at the May 24, 2016 meeting, the Board of Education authorize staff to award the bid for unleaded and diesel fuel to Valley Oil Company for a period of three years, with two possible one-year extensions.