By lisagracekellogg@icloud.com | on May 27, 2022
Chairman Bert Perello (Photo by Chris Frost)
Oxnard– The Public Works & Transportation Committee, May 24, approved the first amendment with Conico Toro Incorporated.
T HE agreement includes bulk fuel, unleaded gasoline, clear diesel, and red dye diesel at city facilities.
Fleet Services Division Manager Jose Arreola presented the item to the committee and said the not to exceed amount increases the total to $3.12 million from $1.42 million and extends the term until June 30, 2024.
The deal includes fuel for blending stations three, four, and five and the Advanced Water Purification Facility location sites.
“On May 21, 2019, the council approved a three-year trade service agreement with MacValley for the delivery of bulk fuel to various city locations,” he said.
Conico Toro Inc MacValley currently delivers bulk fuel to Environmental Resources, Fire Stations 1, 2, 3,4,5,6, 8, the Wastewater Treatment Plant, and River Ridge Golf Club.
“The cost per gallon of fuel consists of the OPIS Wholesale Rack Pricing published average plus $0.215,” he said. “The contract allows a .005 dollar increase each year. The fiscal year 2022-2023 markup rate will be $0.220 dollars, and the fiscal year 2023-2024 will be $0.225. In past years, fuel prices have remained consistent; however, fuel prices have increased 33 percent in the third quarter of the fiscal year 2021-2022.”
He noted that fuel prices are anticipated to remain high for an undetermined rate of time and can continue increasing.
“The funds requested for this amendment include potential increases in fuel prices throughout the term of the agreement,” Arreola said. “The funding will be in the fiscal year 2022-2023 and has been considered in the budget process. The estimated annual spending plan per division is estimated at $544,000 for two years for Wastewater, $376,000 at environmental resources for a combined two years, fleet services for a combined two years is $630,000, River Ridge Golf Course for a combined two years is $110,000, the Water Campus and Blending Stations 3-5, for a combined two years is $20,000, and the Advanced Water Purification Facility is $20,000 for a combined two years.”
The total is $1.7 million for two years with a term date of June 30, 2024.
Committee Member Mayor John Zaragoza said that since fuel costs are going up, how will that affect the city agencies and equipment.
“It has a direct effect,” Public Works Director Michael Wolfe said. “When we see prices increase at the gas pump, those are prices we pay as well. Bulk fuel is delivered to us, and we pay a surcharge for that delivery, plus the rack rate. We also pay for individual Lex cards, the cards we use. As we look at next year’s budget, we included some increases for fuel.”
He noted the city also has vehicles that use CNG (Compressed Natural Gas) fuel.
Committee Chairman Bert Perello asked how often the city checks for leaking tanks and if siphoning is an issue.
“The last time there was a fuel crisis, and the gas wasn’t this high, there was a tremendous amount of fuel theft,” he said. “I can’t imagine that’s not happening.”
Wolfe said most tanks are behind closed gates within city infrastructure places.
“There are not a lot of opportunities,” he said. “We have security, and our staff members have to fill out a form and ask for what type of fuel and how much fuel.”
He said the city inspects its bulk storage for fuel quarterly and annually through a third party.
The item moves forward to the full council.
You must be logged in to post a comment.
451 West Fifth Street Oxnard, California 93030 (Production Office)
1000 Town Center Drive Oxnard, CA 93036 (Walk-in & Drop-off) 9 a.m. - 5 p.m.
Phone: 805-983-0015 Fax: 805-512-7103
Press Releases and News Items: news@tricountysentry.com
Advertising & Legal Notices: advertising@tricountysentry.com
Our Hometown DMCA Notices Newspaper web site content management software and services