Title
[Contract Supplement] Fuel Site Testing, Maintenance, and Repair [Published for 10-Day Review 08/21/2026]
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FileID
File ID: 2026-01373
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplement No. 8 to City Agreement No. 2021-1384 with Kaiser Commercial Petroleum for an amount not-to-exceed $220,000 bringing the agreement’s total not-to-exceed amount to $1,457,500.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract Supplement No. 8
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division manages the City’s ten fuel sites, which house a total of 40 fuel tanks. To properly maintain these sites, there is an ongoing requirement to test, maintain, and repair them as needed. In October 2021, bid B22153311003 was solicited to provide these services, and the winning bidder was Kaiser Commercial Petroleum, awarded Contract 2021-1384. The original award amount was $750,000, approved with Motion No. 2021-0356 on December 14, 2021.
The contract history is as follows:
Initial Contract: 12/14/21-12/13/22 with four additional one year options for $750,000
|
Supplement No. |
Description |
New Not-to-Exceed |
New Contract Expiration Date |
|
1 |
Extend one additional term |
$750,000 |
12/13/23 |
|
2 |
Extend one additional term |
$750,000 |
12/13/24 |
|
3 |
Increase travel rate |
$750,000 |
12/13/24 |
|
4 |
Extend one additional term |
$750,000 |
12/13/25 |
|
5 |
Increase total by $75,000 |
$825,000 |
12/13/25 |
|
6 |
Increase total by $300,000 Extend one additional term |
$1,125,000 |
12/13/26 |
|
7 |
Increase total by $112,500 |
$1,237,500 |
12/13/26 |
Due to increased prices and aging infrastructure, the annual need has increased, and there is not enough funding to fulfill the entire contract term. Staff recommend increasing the contract by $300,000 for a new not-to-exceed amount of $1,457,500, which should cover the remaining term of the contract through December 2026.
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PolicyConsiderations
Policy Considerations: The recommendation in this report is in accordance with City Code Chapter 3.56 and the Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item shall be made available to the public at least ten (10) days prior to council action. This item was published for a 10-day review in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of goods and services and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: On October 21, 2021, the Department of Public Works, Fleet Management Division, in accordance with City Code Chapter 3.56, issued a Request for Bid (RFB) for Fuel Site Testing, Maintenance, and Repairs. Kaiser Commercial Petroleum was deemed the lowest responsive and responsible bidder. The recommended contract amount was $750,000, reflecting the amount expected to be expended over the potential five-year contract period. Due to escalating prices and aging infrastructure, the projection fell short, and additional funds are needed to cover the entirety of the contract period, which will sunset in December 2026.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available in the Department of Public Works Fiscal Year (FY) 2026/27 operating budget (Fleet Fund, Fund 6501).
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Kaiser Commercial Petroleum is an LBE vendor.
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