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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />BACKGROUND <br />The Equipment Services Division of the Public Works Services Department (PWS) manages the City’s fuel <br />supply system for daily usage and maintains a fuel reserve for emergency needs. The fuel supply system <br />consists of seven fuel filling stations throughout the City, providing unleaded gasoline and diesel fuel <br />service not only to City operations but also to outside agencies. The current agreement for the provision <br />of unleaded gasoline and diesel fuel to these stations is set to expire at the end of 2025. <br />Section 2.67.1(A) of Article VII in Chapter 2 in the City’s Municipal Code authorizes using cooperative <br />purchasing with other public agencies to forego a competitive bidding process when contracts have <br />already been awarded for the desired goods or services. To do so, competitive purchasing procedures <br />reasonably similar to those required in the City, as determined by the City Manager, must be employed <br />to create such contracts. <br />On September 12, 2022, the City of Palo Alto issued a Request for Quotation (RFQ) to supply unleaded <br />and diesel fuel to its six fueling locations, which aligns with the goods and services desired by the City. <br />Notification of the RFQ was given to prospective bidders through a bid management portal utilized by the <br />City of Palo Alto. Following its review of the bids, the City of Palo Alto ultimately awarded a five-year <br />agreement to Valley Oil Company that is valid through 2028. <br />ANALYSIS <br />Staff has verified that the City of Palo Alto agreement with Valley Oil Company is still active, and Valley Oil <br />Company has expressed a willingness to honor the same pricing structure contained in the City of Palo <br />Alto’s agreement. <br />The purchasing procedures employed in the creation of the City of Palo Alto’s contract were as follows: <br />Issuance of a Request for Quotation (RFQ) <br />Public Notice sent to prospective proposers <br />Evaluation and selection of lowest responsive and responsible bidder <br />Execution of a General Services Agreement <br />The procedures listed above are reasonably similar to those the City would utilize to procure the desired <br />goods and services, thereby meeting the criteria of Section 2.67.1(A). Awarding an agreement to Valley <br />OiI Company will create efficiencies for the City’s fuel purchasing. Valley Oil Company has rendered these <br />goods and services to the City’s satisfaction and they are the City’s current supplier under contract. If <br />awarded the agreement, staff is confident they will continue to meet the City’s standard for excellence in <br />government operations. <br />Staff recommends approval and authorization for the City Manager to execute a two-year Master <br />Purchase Agreement with Valley Oil Company in an amount not to exceed $1,600,000. <br />7.E. - Page 2 of 17 <br />197