Title
Fuel Terminal Services (Ordinance S-47989)
Description
Request to authorize the City Manager, or his designee to enter into separate contracts with Caljet of America, LLC and SFPP LP Kinder Morgan to provide fuel storage space and fuel pipeline space. Further request to authorize the City Controller to disburse all funds related to this item. This item will have an aggregate value of $486,912.
Report
Summary
The City of Phoenix Public Works Department is responsible for procuring fuel for the majority of the City. This fuel must be moved through a pipeline, as well as stored and blended locally for fuel trucks to distribute fuel to designated citywide fuel sites. This agreement will provide for pipeline receipts, guaranteed storage space, as well as loading services at the rack with additive injection capabilities.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as the result of a determination memo citing unusual nature. The City of Phoenix requests storage space, blending and loading capabilities that are only provided by a limited number of vendors, and due to the volume of fuel purchased, fuel storage terminal services connected to the pipeline are currently required.
Contract Term
This contract will be begin on or about Dec.1, 2021, for a one-year term.
Financial Impact
This item will have an estimated aggregate value of $486,912.
Funding is available in the Public Works Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.