HomeMy WebLinkAboutResolution No. 2018-37Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2018-37
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AWARDING AN
AGREEMENT TO CROWLEY FUELS , LLC . FOR THE FUEL FURNISH & DELIVERY 2018
INVITATION TO BID.
WHEREAS , the Public Works Department released an Invitation to Bid on May 29, 2018 with Bids
Due on June 12, 2018; the following Bids were received:
Bidder Price per gallon
Crowley Fuels LLC $2.705
Alaska Oil Sales Inc $3.084
and,
WHEREAS, Crowley Fuels, LLC was found to be the lowest responsive and responsible bidder
and award to this bidder will be in the best interest of the City; and,
WHEREAS , the recommendation from the City Administration is to award the agreement to
Crowley Fuels, LLC for furnishing and delivering diesel fuel; and,
WHEREAS, the Bidder's invoiced price per gallon for Diesel Fuel will adjust based on the Oil Price
Information Services (OPIS) Reports; and
WHEREAS, the term of the agreement will be from July 1, 2018 to June 30, 2021 . The agreement
term may be extended upon mutual agreement of the parties for two additional one year periods.
The agreement will not be extended beyond June 30, 2023; and,
WHEREAS, sufficient monies are appropriated.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
Section 1. That the City Manager is authorized to execute a contract with Crowley Fu e ls L LC
for furnishing and delivering diesel fuel to various locations in the City.
Section 2. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 20 day of June, 2018.
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BRIAN GABRIEL SR., MAYOR U /
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 12, 2018
SUBJECT: Resolution No. 2018–37 Fuel Furnish & Deliver 2018
____________________________________________________________________________
The Fuel Furnish & Deliver 2018 Invitation to Bid was released on May 29, 2018, with bids due
on June 12, 2018. The City received the following Bids:
Bidder Price per gallon
Crowley Fuels LLC $2.705
Alaska Oil Sales Inc $3.084
The scope of this agreement includes furnishing and delivering Ultra Low Sulfur Non-Highway
Diesel No. 1 Fuel to City emergency generators and the Airport Operations Fuel Tank.
The successful Bidder must subscribe to the Oil Price Information Service (OPIS). The OPIS
report submitted with the bid and used as a base price for future $/gallon adjustment was
$2.785/gallon. The OPIS Unbranded Rack Average is utilized to account for fluctuations within
the market throughout the duration of the Contract. As example the percentage savings we have
today $2.705/$2.785 = 97% of market average, will remain the same percentage for the duration
of contract, regardless of whether the market rate goes up or down.
Crowley Fuels LLC, is the lowest responsive and responsible Bidder. The term of the agreement
will be from July 1, 2018 through June 30, 2021. The agreement term may be extended upon
mutual agreement of both parties for two additional one year periods. The agreement may not
extend beyond June 30, 2023.
It should be noted the last time this Contract was awarded in 2013, the price was $3.762/gallon.
The Public Works Department respectfully recommends approval of Resolution 2018-37 to award
an agreement to Crowley Fuels LLC.
Thank you for your consideration.