TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Leigh Sharp, Deputy Director of Public Works - General Services
SUBJECT: Approve Agreements Related to the Provision of Fuel Services
RECOMMENDATION
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Approve and authorize Agreement No. 250380B with Napa Valley Petroleum, Inc for a contract maximum of $625,000 per fiscal year and Agreement No. 250381B with Allied Pacific Energy, LLC for a contract maximum of $500,000 per fiscal year for the term April 22, 2025 through June 30, 2035 related to the provision of unleaded and diesel fuel services for county vehicles, equipment, and facility generators. (Fiscal Impact: $1,125,000 Expense; Various Department Budgets; Budgeted; Discretionary)
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BACKGROUND
In January 2025, the County issued a request for proposals (RFP) for the provision of unleaded and diesel fuel services for the County. These services primarily consist of the delivery of bulk fuel to the County’s fueling stations at the Yountville and Spanish Flat Yards, as well as various generator sites, and the provision of a fleet fuel card system with access to fuel at discounted rates at retail stations in Napa County and at posted rates at non-networks stations throughout the region. The County’s intent through the RFP was to contract with two vendors to ensure sufficient services at commercial fueling stations to meet the needs of multiple county departments.
The County received two proposals and staff evaluated and scored proposals based on weighted criteria including company experience, availability and technical capabilities of commercial stations, the proposed fleet fuel card program, bulk delivery services, and costs and pricing.
Based on the outcome of the RFP, staff is recommending that two contracts for the provision of fuel services be approved. Napa Valley Petroleum, Inc. (NVP) will provide discounted rates at multiple retail stations in Napa County and provide bulk fuel delivery to the County at a maximum contract amount of $625,000 per fiscal year. Allied Pacific Energy, LLC (Allied) will provide discounted fuel rates at the Allied Clean Fuels Plaza on Devlin (Devlin Chevron Station) and will provide fuel at posted rates at non-network stations in Napa County and across the country at a maximum contract amount of $500,000. The term of both agreements is April 22, 2025 through June 30, 2035 and the agreements may be terminated for convenience by giving 30 days prior written notice.
The County has received unleaded and diesel fuel services from NVP since approximately 1994. In March 2017, the County issued an RFP for fuel services and ultimately executed agreements with NVP and Hunt/Allied Inc. in October, 2017. In 2024, the Hunt/Allied Inc. joint venture was terminated.
NVP and Allied are both local vendors.
REQUESTED ACTION:
Approve and authorize the Chair to sign the following agreements related to the provision of unleaded and diesel fuel services:
1. Agreement No. 250380B with Napa Valley Petroleum, Inc for a maximum of $625,000 per fiscal year for the term April 22, 2025 through June 30, 2035; and
2. Agreement No. 250381B with Allied Pacific Energy, LLC for a maximum of $500,000 per fiscal year for the term April 22, 2025 through June 30, 2035.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Various departments: Fleet Management (41000), Property Management (43000), Roads (20400) |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
It is critical that the County have access to fuel through bulk delivery to corporation yards and facility generators and through retail station access. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Fuel needs will be budgeted according to projected use in future fiscal years. |
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Consequences if not approved: |
The County would not have a contract with a fuel services provider and would not receive the benefits, including reduced fuel prices and timely onsite delivery. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.