Staff Memo to Council for Bulk Fuel Agreement
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City of Apache Junction
Home of the Superstition Mountains
DATE:
JUNE 15, 2026
TO:
MAYOR AND CITY COUNCIL MEMBERS
THROUGH:
BRYANT POWELL, CITY MANAGER
FROM:
MIKE LOGGINS, PUBLIC WORKS DIRECTOR
SUBJECT:
BULK FUEL AGREEMENT
Summary
Before the Council is an agreement between the City of Apache Junction and Petroleum
Traders Corporation for the purchase and delivery of bulk fuel for an initial one-year term
in an amount not to exceed $900,000. The agreement includes four automatic one-year
renewal options.
Background/Discussion
The City purchases bulk fuel for use in its fleet and equipment operations. The current bulk
fuel contract expires on June 30, 2026. To obtain competitive pricing and ensure a
reliable fuel supply, the City issued a Request for Proposals (RFP) for bulk fuel services.
On May 11, 2026, the City received two responses to the RFP. Staff evaluated the
proposals and determined that Petroleum Traders Corporation provided the best overall
value to the City based on pricing and service considerations.
Based on current fuel usage and pricing, the proposed agreement with Petroleum
Traders Corporation is expected to reduce the City's annual bulk fuel costs by
approximately $10,000 compared to the current contract. Funding for fuel purchases is
included in the City's adopted budget and will be paid from the applicable operating
funds.
Recommendation
Staff recommends that the Council approve the agreement authorizing the City to
contract with Petroleum Traders Corporation for the purchase and delivery of bulk fuel in
an amount not to exceed $900,000 for an initial one-year term with four automatic one-
year renewal options.