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HomeMy WebLinkAboutPinnacle Petroleum Inc. - 2019-03-01 APP,VvJT 7-0 ���tdTlNGtp� > _ - City of Huntington Beach Ge COUNTWGP File #: 19-371 MEETING DATE: 4/1/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, Executive Director PREPARED BY: Travis K. Hopkins, PE, Director of Public Works Subject: Award and authorize execution of a Three-Year Contract with Pinnacle Petroleum Inc. for Bulk Fuel Service - Jet-A Aviation Fuel in an amount not to exceed $300,000 per year Statement of Issue: In September of 2018, the City received bids for Bulk Fuel Services for Jet-A aviation fuel. City Council action is requested to award a three-year contract to the lowest responsive and responsible bidder, Pinnacle Petroleum, Inc. in an amount not to exceed $300,000 annually and $900,000 over the full three-year term. Financial Impact: Funds are available in Non-Departmental account 10040101.63495 for Jet Aviation fuel purchases. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Service Agreement Between the City of Huntington Beach and Pinnacle Petroleum, Inc. for Bulk Fuel Services - Jet-A Aviation Fuel" in an amount not to exceed $300,000 per year for three years. Alternative Action(s): Do not approve the contract award and direct staff to proceed differently. Analysis: The Public Works Department manages the maintenance and restocking of the city's fuel infrastructure, including the fuel island and storage tank at the Police Heliport that is used to fuel the Police helicopters. Police air support helicopters require approximately 53,000 gallons of Jet-A aviation fuel annually. Public Works fleet maintenance staff work with the Police Department Air Support Division and the wholesale fuel broker to place timely fuel orders as needed and to ensure sufficient fuel inventory for the Police helicopter program. The city's former contracted fuel broker resigned their contract abruptly and without notice in early 2018. Since that time, staff has been utilizing interim broker services pending the outcome of the City of Huntington Beach Page 1 of 2 Printed on 3/27/2019 powered Legistar'" File #: 19-371 MEETING DATE: 4/1/2019 competitive bid process. In August of 2018, the City received bids under RFQ 18-0718 for a new vendor to provide bulk aviation fuel services. Bids were evaluated by direct comparison of each vendor's proposed markup over wholesale prices. Following are the bid results listed from low to high. Please note that for the basis of bid comparison, the results shown are each vendor's proposed markup. This markup, when applied to the commodity price of the fuel product at the city's annual purchase volume, calculates to the city's current annual expense for helicopter fuel at approximately $214,000. Vendor Markup per Gallon Pinnacle Petroleum, Inc. 0.0486 Merrimac Energy Group 0.1260 World Fuel Services 0.2475 Patten Energy 0.3200 Staff is requesting that City Council approve the award and authorize the execution of the contract for bulk Jet-A aviation fuel with Pinnacle Petroleum, Inc., the lowest responsive and responsible bidder. Pinnacle Petroleum, Inc. is a Huntington Beach business. They were the lowest outright bidder so it was not necessary to apply the 5% local vendor preference. Environmental Status: The project includes a contract to purchase Jet-A aviation fuel via a broker to fuel City equipment and does not propose or involve physical changes to the environment and is not subject to CEQA per CEQA Guidelines Section 15061(b)(3), which exempts projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Strategic Plan Goal: Enhance and modernize public safety service delivery Attachment(s): 1. Service Agreement Between the City of Huntington Beach and Pinnacle Petroleum, Inc. City of Huntington Beach Page 2 of 2 Printed on 3/27/2019 powered3 LegistarT` SERVICE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PINNACLE PETROLEUM, INC. FOR BULK FUEL SERVICES—JET-A AVIATION FUEL THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach a municipal corporation of the State of California, hereinafter called "City," and PINNACLE PETROLEUM, INC., a CALIFORNIA CORPORATION, hereinafter referred to as "Contractor." Recitals A. The City desires to retain a Contractor having special skill and knowledge in the field of PROCUREMENT, SUPPLY,AND DELIVERY OF BULK JET-A AVIATION FUEL. B. Contractor represents that Contractor is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a comparable company or firm in the field. Contractor has been selected to perform these services pursuant to Huntington Beach Municipal Code Chapter 3.02, NOW, THEREFORE, it is agreed by City and Contractor as follows: 1. Scope of Services Contractor shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "Project." Contractor hereby designates LIZ MCKINLEY who shall represent it and be its sole contact and agent in all consultations with City during the performance of this Agreement. 2. City Staff Assistance City shall assign a staff coordinator to work directly with Contractor in the performance of this Agreement. 3. Compensation a. City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement, Page 1 of 9 2016 shall not exceed $300,000 (three hundred thousand dollars) annually during the term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 4. Term Time is of the essence of this Agreement. The services of Contractor are to commence MARCH 1, 2019 or as soon as practicable after the execution of this Agreement by City (the "Commencement Date") and terminate FEBRUARY 28, 2022, unless terminated earlier in accordance with the provisions of this Agreement. Contract may be extended for two (2) additional one year periods if mutually agreed to in writing by both parties. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule and Term may be amended to benefit the Project if mutually agreed to in writing by City and Contractor. In the event the Commencement Date precedes the Effective Date, Contractor shall be bound by all terms and conditions as provided herein. 5. Extra Work In the event City requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," Contractor will undertake such work only after receiving written authorization from City. Additional compensation for such extra work shall be allowed only if the prior written approval of City is obtained. 6. Disposition of Plans, Estimates and Other Documents Contractor agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to City, and Contractor shall turn these materials over to City upon expiration or termination of this Agreement or upon Project completion, whichever shall occur first. These materials may be used by City as it sees fit. 7. Hold Harmless Contractor hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all, claims, damages, losses, expenses, judgments, demands and defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Contractor's employees and damage to Contractor's property, arising directly or indirectly out of the obligations or operations herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not Page 2 of 9 2016 limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Contractor will conduct all defense at its sole cost and expense and City shall approve selection of Contractor's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. 8. Workers Compensation Insurance Pursuant to California Labor Code Section 1861, Contractor acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers' compensation; Contractor covenants that it will comply with such provisions prior to commencing performance of the work hereunder. . Contractor shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. Contractor shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. Contractor shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and Contractor shall similarly require all subcontractors to waive subrogation. 9. General Liability Insurance In addition to the workers' compensation and employer's liability insurance and Contractor's covenant to defend, hold harmless and indemnify City, Contractor shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering the Project/Service. This policy shall indemnify Contractor, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the Project/Service, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this Project/Service. This policy shall name City, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Project/Service shall be deemed excess coverage and that Contractor's insurance shall be primary. Under no circumstances shall said above-mentioned insurance contain a self-insured retention, or a"deductible" or any other similar form of limitation on the required coverage. 10. Automobile Liability Insurance Contractor shall obtain and furnish to City an automotive liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for Contractor's automotive liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and a Page 3 of 9 2016 separate "Additional Insured Endorsement" page listing both the policy number and naming the "City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers" as additional insured on the endorsement. The above-mentioned insurance shall not contain a self-insured retention, "deductible" or any other similar form of limitation on the required coverage except with the express written consent of City. 11. Certificate of Insurance Prior to commencing performance of the work hereunder, Contractor shall furnish to City a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: a. provide the name and policy number of each carrier and policy; b. state that the policy is currently in force; and c. promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. Contractor shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverage shall not derogate from Contractor's defense, hold harmless and indemnification obligations as set forth in this Agreement. City or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. Contractor shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 12. Independent Contractor Contractor is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. Contractor shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for Contractor and its officers, agents and employees and all business licenses, if any, in connection with the Project and/or the services to be performed hereunder. 13. Conflict of Interest Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 14. Termination This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor Page 4 of 9 2016 compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 15. Exclusivity and Amendment This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 16. Assignment Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 17. City Employees and Officials Contractor shall employ no City official nor any regular City employee in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 18. Notices Any notices, certificates, or other communications hereunder shall be given either by personal delivery to Contractor's agent (as designated in Section 1 hereinabove) or to City as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses below. City and Contractor may designate different addresses to which subsequent notices, certificates or other communications Page 5 of 9 2016 will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U.S. certified U.S. certified mail-return receipt requested: To City: To Contractor: City of Huntington Beach Pinnacle Petroleum, Inc. Attn: General Services Manager Attn: Liz McKinley 2000 Main Street 16651 Gemini Lane Huntington Beach, CA 92648 Huntington Beach, CA 92647 714-841-8877 19. Consent When City's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transactions or event. 20. Modification No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 21. Section Headings The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 22. Interpretation of this Agreement The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. Page 6 of 9 2016 23. Duplicate Original The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 24. Immigration Contractor shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 25. Legal Services Subcontracting Prohibited Contractor and City agree that City is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. Contractor understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable for payment of any legal services expenses incurred by Contractor. 26. Confidentiality Contractor recognizes that in the performance of its duties under this Agreement, it must conduct its activities in a manner designed to protect information of a sensitive nature from improper use or disclosure. Contractor warrants that it will use reasonable efforts consistent with practices customary in the facilities management industry in recruiting, training and supervising employees and in otherwise performing its duties hereunder in order to achieve this result. In the furtherance of this, Contractor agrees, at the request of the City, to require its employees to execute written undertakings to comply with the foregoing confidentiality provision. 27. Discrimination Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 28. Jurisdiction -Venue This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. Page 7 of 9 2016 29. Professional Licenses Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Huntington Beach and all other governmental agencies. Contractor shall notify the City immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 30. Attorney's Fees In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 31. Survival Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 32. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of California. 33. Signatories Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 34. Entirety (a) The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement warranty, fact or circumstance not expressly set forth in this Agreement. (b) All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. Page 8 of 9 2016 35. Effective Date IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. CONTRACTOR CITY OF HUNTINGTON BEACH, a PINNACLE PETR UM INC. municipal corporation of the State of California By: pr. t n Mayor ITS:I(circ one) hairma,,i'residen esident A i� 944414144d City Clerk 100//9 �$ By: /1111k. r- tFEBO'_ INITIATED AND APPROVED: p int name ITS: (circ'e one ice Presiden IMPief Financial • f•-r/Treasurer Travis K. Hopkins, Pu is Works Director REVIEW APPROVED: APPROVE TO F • i y Manager City Attorney Date Page 9 of 9 2016 BULK FUEL: JET-A AVIATION FUEL EXHIBIT A Ordering: Physical inventory for all fuel types is monitored electronically via a Veeder Root Monitoring System. This system monitors stored fuel using the following parameters: content, volume, height, usage, and temperature. The City maintains and calibrates this system annually. Vendor shall provide bulk fuel delivery on an "as needed" basis. 1. Designated City staff will verify tank levels and provide authorization for fuel order and fuel delivery. Vendor shall not order fuel on City's behalf nor schedule delivery without prior authorization by designated City staff. 2. The authorized fuel order should be fulfilled, delivered, and unloaded at the respective tanks/sites within one (1) working day of order authorization by City. 3. Vendor shall provide to City monthly reports as to quantities, locations and types of fuels delivered including delivery price. Reports will be due by the 15th of each month for the preceding month. 4. Vendor shall provide to City quarterly and annual summary reports as to quantities, locations, and types of fuels delivered including pricing and total cost information. Delivery: 1. Vendor shall arrange for delivery of all fuel orders and perform all deliveries in a safe and professional manner, adhering to all applicable Federal, State, Local, American Society of Testing & Materials (ASTM), Department of Transportation (DOT), South Coast Air Quality Management District (SCAQMD), and Air Resources Board (ARB) regulations for the handling and supply of jet aviation fuels. 2. Deliveries shall be made during City regular business hours of Mon. through Fri., 7:00 a.m. to 4:00 p.m. to each City location as needed within one (1) working day from receipt of order authorization by designated City staff. 3. Up to one-hour of"standing time" shall be allowable at no charge for the purpose of unloading. If the vendor is unable to begin unloading fuel within one hour after the scheduled arrival at a City site due to delays caused by City operations, demurrage charges may be assessed by Vendor. Such charges shall apply in increments of one- quarter(1/4) hours. 4. Vendor shall perform a Veeder Root inventory printout prior to fuel being unloaded into storage tank and shall perform another inventory printout after fuel is unloaded into storage tank. These printouts shall be provided to designated City staff at time of each completed delivery. 5. Vendor shall provide a fuel delivery bill of lading receipt to designated City staff at the time of completed delivery. 6. The Vendor warrants that each carrier/driver utilized by Vendor to deliver fuel to the City of Huntington Beach has the proper operating license, driver safety records, certifications, and insurance required to operate fuel trucks and trailers in accordance with current State, Federal and Local regulations. 7. All delivery carriers/drivers shall be trained and certified in appropriate safety measures and HAZMAT, and equipped to handle the containment, remediation, and proper clean- up of all spills of up to 100 gallons. 8. Vendor shall be responsible for all spillage that may occur during transit, loading or unloading operations 9. Vendor shall be held financially and legally liable for the complete containment, remediation, and disposal of all hazardous waste spills that may occur during Vendor's fueling operations. 10. The supplier shall immediately report any spillage to designated City staff and clean up the spillage within one working day of the time of spillage, or other time period as specified by City of Huntington Beach. A-1 BULK FUEL: JET-A AVIATION FUEL EXHIBIT A 11. In the event of a fuel spill, the supplier is required to immediately notify designated City staff at the delivery location, cover all drains in the vicinity, prevent spill from entering storm drains, attempt to contain the spill, and notify City of Huntington Beach Public Works contract liaison. 12. City will supervise any and all fuel spill remediation and disposal of hazardous waste. 13. Vendor shall correct or adjust fuel deliveries to be stated, billed, and paid for on the basis of said fuel at sixty (60) degrees Fahrenheit. Corrections shall be made on all bulk deliveries for petroleum measurement tables. 14. Vendor shall provide City with a hazardous waste spill and emergency procedure. Fuel Quality and Testing: 1. Fuels supplied by Vendor shall meet current fuel industry laws, codes, requirements, standards and guidelines, including South Coast Air Quality Management District (SCAQMD) and American Society of Testing & Materials (ASTM) laws, regulations and standards. 2. Fuels supplied by Vendor shall be free from contamination. 3. City reserves the right to conduct spot check testing for fuel product quality assurance via an independent laboratory. 4. City of Huntington Beach and/or its authorized representative(s) reserves the right to test fuel(s) quality before, during, and after unloading. Should test results show that the fuel(s) contains contamination; the fuel(s) will be rejected. 5. Vendor shall be responsible for the removal of the fuel(s) from City of Huntington Beach property within three working days after requested to do so should test results show that the fuel(s) contains any contaminants. The vendor shall also be responsible for all cleanup required to all City of Huntington Beach property, storage facilities, and equipment as a result of noncompliance with specifications. Furthermore, Vendor shall be fully responsible for any and all costs incurred by City of Huntington Beach for any equipment sustaining damage that is attributed to a contaminated fuel(s) that Vendor has delivered. 6. Any aftermarket additive used shall be identified by brand and/or trade name. The manufacturer's additive specifications shall be provided within seven working days to City of Huntington Beach upon request. An additive, if used, shall comply with Environmental Protection Agency (EPA) regulations, and shall be compatible with the refiner's product. 7. Additives which increase emissions of sulfur and other substances proven to damage the environment and/or which are disallowed by EPA regulations will not be accepted. Invoices: 1. Vendor shall submit invoices electronically, as an attachment to email formatted as a .PDF, to designated City staff by close of business 5:00 p.m. on the day following delivery. 2. Invoices will be due net 30 days from invoice date. 3. Payment shall only be made for quantities actually delivered and accepted. 4. Invoices shall be generated one per location delivery; shall detail the date, time, location of delivery; type of fuel delivered; quantity of fuel delivered in gallons; and shall itemize all unit prices, taxes, and fees. 5. The vendor shall submit with each invoice a copy of the delivery bill of lading from the carrier, and a copy of the applicable OPIS price sheet. 6. The City is exempt from Federal Fuel Excise Tax. Invoices shall not assess Federal Fuel Excise Tax to the City and if such charge is shown shall include a credit for same and in the same amount. A-2 BULK FUEL: JET-A AVIATION FUEL EXHIBIT A Credit Card: The City may elect, at its discretion, to utilize a Visa or MasterCard branded procurement card and authorize vendor to charge invoices via credit card. Prices: 1. The City of Huntington Beach is exempt from Federal Fuel Excise Tax. Invoices shall not assess Federal Fuel Excise Tax to the City and if such charge is shown shall include a credit for same and in the same amount. 2. Base fuel cost will always be the OPIS "Los Angeles" PADD 5 report as of 10:00 a.m. Eastern time on the day that the order is placed. Fuel Type and Pricing: Jet Aviation Fuel shall be Jet A type. The prices of all fuels shall be adjusted daily reflecting the OPIS unbranded, low daily rack/terminal prices published at approximately 10:00 a.m. Eastern Time, for the "Los Angeles" PADD 5 report, unbranded Low Rack, Jet-Pipe LAX. JET A FUEL PRICING Price shall apply to the low rack/terminal price in the column entitled "Los Angeles", PADD 5, Los Angeles Jet A, unbranded Low Rack Jet-Pipe LAX, in the OPIS daily report published approximately 10:00 a.m. ET. Bulk Purchase Full Truckload (5,000+ gallons) Mark-up per gallon (plus) PPG: $0.0165 Delivery charge PPG: $0.0321 DEMURRAGE Demurrage Charges per one-(1/4) hour in excess of initial one (1) hour. $20.00 OPIS Report A copy of the daily OPIS Report per fuel type that is published approximately 10:00 a.m. Eastern Time on the order date shall be provided with each fuel delivery invoice. The vendor shall acquire an OPIS subscription in the name of the City of Huntington Beach for diesel and unleaded fuels annually. OPIS Subscription Annual Subscription $564 Credit Card Processing The City may elect, at its discretion, to utilize a Visa or MasterCard branded procurement card and charge bulk fuel purchases to the credit card. Credit Card Processing Processing Fee (indicate percentage of total charge or flat rate per transaction) 3.75% of total charge A-3 BULK FUEL: JET-A AVIATION FUEL EXHIBIT A FUEL TANK SITE (underground) Location # Type of Fuel Capacity Tanks in Gals. Heliport 1 Jet A 12,000 18401 Gothard Street A-4 ACG® DATE(MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 02252019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT FEDERATED MUTUAL INSURANCE COMPANY NAME: CLIENT CONTACT CENTER PHONE HOME OFFICE: P.O. BOX 328 (A/C,No,Ext):888-333-4949 FAX No):507-446-4664 OWATONNA, MN 55060 ADMDRESS:CLIENTCONTACTCENTERRFEDINS.COM INSURER(S)AFFORDING COVERAGE NAIC# INSURER A:FEDERATED MUTUAL INSURANCE COMPANY 13935 INSURED 310-059-1 INSURER B: PINNACLE PETROLEUM INC INSURER C: (AUDRA MORENO) 16651 GEMINI LN INSURER D: HUNTINGTON BEACH,CA 92647-4432 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: 118 REVISION NUMBER:0 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUER POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSR WVD (MM/DD/YYYY) (MMIDDIYYYY) X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $1,000,000 MAGE TO RENTED CLAIMS-MADE X OCCUR PREMISES Ea occurrence) $100,000 MED EXP(My one person) EXCLUDED A Y N 9068974 06/14/2018 06/14/2019 PERSONAL&ADV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 PRO- X POLICY JECT LOC PRODUCTS-COMP/OP AGG $2,000,000 OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $1,000,000 (Ea accident) ANY AUTO BODILY INJURY(Per person) OWNED AUTOS ONLY SCHEDULED A AUTOS N N 9068974 06/14/2018 06/14/2019 BODILY INJURY(Per accident) X HIRED AUTOS ONLY X NON-OWNED PROPERTY DAMAGE AUTOS ONLY (Per accident) X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $20,000,000 A EXCESS LIAB CLAIMS-MADE N N 9068829 06/14/2018 06/14/2019 AGGREGATE $20,000,000 DED RETENTION WORKERS COMPENSATION OTH- PER STATUTE AND EMPLOYERS'LIABILITY Y/N ER ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT OFFICER/MEMBER EXCLUDED? N I A -- - (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE It yes,describe under DESCRIPTION OF OPERATIONS below E.L DISEASE•POLICY LIMIT , FORS DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES(ACORD 101,Additional Remarks Schedule,may be attached if more space is required) A OVEp SEE ATTACHED PAGE , ' v .,'1 GGATES 13Y IC,WM"(OROEY EAGH :' -cot.t co Of VI CERTIFICATE HOLDER CANCELLATION 310-059-1 118 0 CITY OF HUNTINGTON BEACH SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 2000 MAIN ST THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN HUNTINGTON BEACH,CA 92648-2702 ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE YCA^/ © 1988-2015 ACORD CORPORATION.All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD AGENCY CUSTOMER ID: 310-059-1 LOC#: ACOREP ADDITIONAL REMARKS SCHEDULE Page 1 of 1 AGENCY NAMED INSURED FEDERATED MUTUAL INSURANCE COMPANY PINNACLE PETROLEUM INC POLICY NUMBER (AUDRA MORENO) SEE CERTIFICATE#118.0 16651 GEMINI LN HUNTINGTON BEACH,CA 92647-4432 CARRIER NAIC CODE SEE CERTIFICATE#118.0 EFFECTIVE DATE:SEE CERTIFICATE#118.0 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE RE: 18401 GOTHARD ST HUNTINGTON BEACH, CA 92648 ADDITIONAL INSURED INCLUDES: CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS. INSURANCE PROVIDED BY THE GENERAL LIABILITY COVERAGE IS PRIMARY AND NONCONTRIBUTORY OVER OTHER INSURANCE. FOR REASONS OTHER THAN NON-PAYMENT OF PREMIUM, 30 DAYS NOTICE WILL BE PROVIDED TO THE CERTIFICATE HOLDER IN THE EVENT THAT THE ISSUING COMPANY CANCELS THE POLICY BEFORE THE EXPIRATION DATE OF THE POLICY. FOR NON-PAYMENT OF PREMIUM, 10 DAYS NOTICE WILL BE PROVIDED TO THE CERTIFICATE HOLDER IN THE EVENT THAT THE ISSUING COMPANY CANCELS THE POLICY BEFORE THE EXPIRATION DATE OF THE POLICY. ACORD 101 (2008/01) O 2008 ACORD CORPORATION.All rights reserved. The ACORD name and logo are registered marks of ACORD • Offics Copy. POLICY NUMBER:9068974 COMMERCIAL GENERAL LIABILITY CO 20 26 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Persort(s)Or Organization(s): DESCRIPTION OF INTEREST IF APPLICABLE: CITY OF HUNTINGTON BEACH ANY COVERAGE PROVIDED BY THIS 2000 MAIN ST ENDORSEMENT APPLIES ONLY TO DELIVERY OF HUNTINGTON BEACH CA 92648 FUEL TO 18401 GOTHARD ST HUNTINGTON BEACH,CA 92648.ADDITIONAL INSUREDS ALSO INCLUDE:ITS OFFICERS,ELECTED OR APPOINTED OFFICIALS,EMPLOYEES,AGENTS AND VOLUNTEERS. information required to complete this Schedule, if not shown above,will-be shown in the Declarations, A. Section II - Who Is An insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person(s) cr additional insureds, the following is added to organization(s) shown in the Schedule, but only Section III -Limits Of Insurance: with respect to liability for "bodily injury", If coverage provided to the additional insured is "property damage" or "personal and advertising required by a contract or agreement, the most we Injury`caused, in whole or in part. by your acts or will pay on behalf of the additional insured is the omissions or the acts or omissions of those acting amount of insurance: on your behalf: 1, Required by the contract or agreement:or 1, In the performance of your ongoing operations. 2. Available tinder the applicable Limits of or insurance shown in the Declarations; 2. In connection with your premises owned by or whichever is less. rented to you. However: This endorsement shall not increase the applicable Limits of insurance shown in the 1. The insurance afforded to suth additional Declarations. insured only applies to the extent permitted by law: and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. PINNACLE PETROLEUM INC (AUDRA MORENO) 16651 GEMINI LN HUNTINGTON BEACH CA 92647 Insurance Services Office,Inc„2012 Page 1 of 1 CC 20 26 0413 Policy Number:9068974 Transaction Effective Date:02-25-2019 PINNPET-02 JBAE ACORD" CERTIFICATE OF LIABILITY INSURANCE DATEIMMIDDIYYYY) 02/22/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License#0757776 CONTACT Juliana Bae,CISR NAME: HUB International Insurance Services Inc. iA"/c°O,,"N,Eat):(714)569-2720 3817 (A//C,No(714)784-3999 4695 MacArthur Court,Suite 600 Newport Beach,CA 92660 aEnoliEss:Juliana.bae@hubinternational.com INSURER(S)AFFORDING COVERAGE NAIC# INSURER A:Oak River Insurance Company 34630 INSURED INSURER B: Pinnacle Petroleum,Inc. INSURER C: 16651 Gemini Ln INSURERD: Huntington Beach,CA 92647 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTVNTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSD WVD IMM/DD/YYYYI 1MM/DDIYYYYI COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ CLAIMS-MADE OCCUR DAMAGE TO RENTED PREMISES(Ea occurrence) $ MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ POLICY PRO-JECT LOC PRODUCTS-COMP/OP AGG $ OTHER: $ AUTOMOBILECOMBINED SINGLE LIMIT LIABILITY (Ea accident) ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED AUTOSOE ONLY _ AUTOS BODILY INJURY(Per accident) $ AUTODS ONLY _ AUUTOS ONLY PPerr accident4AMAGE UMBRELLA LIAB _ OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ A WORKERS COMPENSATION Xy PER STATUTE EOTH AND EMPLOYERS'LIABILITY R Y/N x PIWC917600 10/01/2018 10/01/2019 1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER FI /MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached It more space Is required) RE:Operations of the named insured during the current policy term.Waiver of subrogation applies in favor of City of Huntington Beach,its officers,elected or appointed officials,employees,agents and volunteers per WC990410B.30 days notice of cancellation,10 days for non-payment of premium,will be provided per policy provisions. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Huntington Beach THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Y 9 ACCORDANCE WITH THE POLICY PROVISIONS. 2000 Main St Huntington Beach,CA 92648-2702 AUTHORIZED REPRESENTATIVE ACORD 25(2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 04 10B(Ed.9-14) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA BLANKET BASIS We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule.(This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) The additional premium for this endorsement shall be 2% of the total manual premium otherwise due on such renumeration.The minimum premium for this endorsement is$350.00 This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. Schedule BLANKET WAIVER Person/Organization Blanket Waiver—Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver. Job Description Waiver Premium All CA Operations 350.00 This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 10/01/2018 Policy No. PIWC917600 Endorsement No. Insured: Pinnacle Petroleum, Inc. Premium $ Included Insurance Company Oak River Insurance Company Countersigned by WC 99 04 10B (Ed 9-14) NTING��� 7�� o �... ti'� City of Huntington Beach � 'i\ 2000 Main Street ♦ Huntington Beach, CA 92648 " :x 1 ikko Q (714) 536-5227 • www.huntingtonbeachca.gov ®,`OCFn .P� /AO Office of the City Clerk 0UNTY /,I Robin Estanislau, City Clerk April 10, 2019 Pinnacle Petroleum, Inc. Attn: Liz McKinley 16651 Gemini Lane Huntington Beach, CA 92647 Dear Ms. McKinley: Enclosed for your records is a copy of the "Service Agreement between the City of Huntington Beach and Pinnacle Petroleum, Inc. for Bulk Fuel Services — Jet-A Aviation Fuel." Sincerely, 4214K, 9-674440.444) Robin Estanislau, CMC City Clerk RE:ds Enclosure Sister Cities: Anjo, Japan • Waitakere, New Zealand