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EXHIBIT B <br />PRICE PROPOSAL <br />February 5, 2014 <br />City of Santa Ana <br />20 Civic Center Plaza <br />Santa Ana, Ca 92702 <br />Dear Suzi Furjanic / AIA,LEED Green Assoc!ate,Assoc. PL Planner; <br />Re: New propane Fueling Station -Fleet Services <br />This letter is In response to your email dated February 4, 2014 to the following questions in bold. <br />Will we purchase fuel monthly? Will the rack price be revisited and taken into account at that <br />time. Is "rack price" the correct language to use? <br />Arro Autogas will bill the City of Santa Ana twice a month for all transactions during any two week <br />period. All transactions will be recorded through the on -site Fuel Master Unit. The price Arro quoted on <br />RFP #13 -012 was (Propane price to be $0.30 over Arro Autogas's laid in cost on date of delivery + taxes) <br />Laid in is what it cost to truck the propane from the oil refinery to our Pomona facility, currently laid in Is <br />$0.11. This equals a total margin /delivery cost of $0.41. The correct language is "AePEX Los Angeles <br />rack on the date of transaction ". <br />Did we agree that we would pay: <br />Rack price + .30 ( +tax) for 0.50k gallons <br />Rack price + .25 ( +tax) for 50 -75k gallons <br />Rack price + .20 ( +tax) for 75k+ gallons <br />Arro Autogas will offer a discount for volume as stated below. The discount will be based on gallons sold to <br />the City of Santa Ana during each and every twelve month period of the five year term. The gallons will <br />be calculated once the propane infrastructure is installed and approved for service by all local <br />jurisdictions. This is not a cumulative number, but based on twelve months. The discount will be as <br />follows: <br />AePEX LA Rack +$0.41( +tax) for 0- 50,000 gallons within 12 months as described above. <br />AePEX LA Rack +$0.36( +tax) for 50,001- 75,000 gallons within 12 months as described above. <br />AePEX LA Rack +$0.31( +tax) for 75,001 + gallons within 12 months as described above. <br />Thank You, <br />Ted Olsen <br />Market Manager <br />Arro Autogas <br />Propanesupply2 /24/14 <br />