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Home My WebLink AboutRESOLUTION 1996-17 crrY OF' RESOLUTION NO..96-17 Suggest. al'by: coU%, AA RESOLUTION OF THE COUNCIL OF THE ci~ OF KENAI;. ALASKa" AWARDING",.' CONTRACT FOR FURNISHING AND DEI;:tvERING ALL FUEL TO.THE'CI~:::.OF' KENAI (INCLUDINGt GELIVERY TO THE'CiTY's SERVICE:$TATION)'i'TO KENAI AIRPORT FUEL SERVICE,. INC; FOR THE AMOUNT OF $.785/GAL'i 'FOR'-'DIESEL #1, ,. $.695/GtAL,'FOR DIESEL.'J~2,:' AND $.830/GAL ': FOR UNLEADED'.. GASOLINE, :"" WHEREAS, the following'bidS were received, on.. january 24, 1996, fo,"fumishlng and delivering'fuel to the Clty'of Kenai (Dock and Generator Tanks):'"":".;.' -' ." ;'... ' , ..... BIDDER ' ~ ~ UNLEADED'GASOLINE Doyle's Fuel Service, 'Inc. Kenal Airport Fuel Service $.755/gal.. $.745/gal. $.695/gal. $.840/gal. $.830/gal. WHEREAS, unit price oh~ges (both increase and decrease) Will be, based on, the Reflnery.'.Raok Pdce, whiCh ,is $,675 for dissai #1, $.615 for dleSel..#2,; and'$.:740 for unleaded gasoline, and '.' , WHER'EAS~ there was another' fuel bid for FurniShing and DiSpensing-F~' throUgh a contractors service station, Which. was to rePtace ". the city's fueling-station, and..". WHEREAS, the Council has decided that it WOuld be b~t for .the City to continue dispensing its own fuel thrOugh a city owned service station and has therefore decided to repair and' upgrade the ctty's servlce statk)n,' :and ........ WHEREAS, Kenai Airport. Fuelr Service, Inc. was the Iow bidder', on both of. the fuel bids, and · " WHEREAS, Kenal Airport Fuel Sewice, Inc. has agr~cl to extend, thelr. Fumi~h and Delivery Fuel Bid to Include the fuel tanks at the city service station In the Ciys shop area, and -. WHEREAS, this resolution and award of the projeCt..Is contingent upon councll'aPproval, WHEREAS, the recommendation from the Public Works Department is to award the contract to Kenai Airport Fuel Service, Inc. for the prices quoted in their bid, and WHEREAS, the Council of the City of Kenai has determined, that Kenai Airport .' Fuel Service, Inc.'s bid is the lowest reSpons!ble bid and' award, to this bidder .would be'in the-.: WHEREAS, sufficient monies 'a~eaPPr0Prlated, .'::" ": '.~r:.".:.' """ '. '': i.."::':' "'.'.:" '. '.:'~:'.~'"~ NOW, THEREFORE, 'BE'IT'RE$OLVED' BY THE'coUNClLOF THE.'ci~OFKENA:i;': ': ALASKA, that the contract 'fOr furniSh'lng and delivering' a i! :fuel to:. the'.:-clty:of...:K~at-' (Including delivery to the city's'esn ce station)'be'awarded:.to:Kenal 'AI~F~I.~N~i',' Inc. for the amount of $.7&5/gal. for diesel #1. $.695/ga!.. for diesel ~, and:'$;830/~L.'for.. PASSED BY THE COUNCIL OF-THE CITY :'OF' KENAil ,A1;ASKA,. thle'215tday of-' February, 1996. --' " ATTEST: JOHN J. WILLIAMS Carol L. Freas, City Clerk ~ - Written by Public Works:/,,~ Appmv~ by Finance: ~..~--. u~,,,, 'a ......... II I IIII I . I II1 III 1111 III II IIIIIII III II I III! IIII .... I . I MEMORANDUM TO: 'Mayor Will!ams and cIty Coun0il .., ' THROUGH:' Tom Manninan,. City Manager,..,1'5~.: FROM: .Kelth Komelis, Publl~ Works 'Dlraetor~/~_.,, DATE: February 15,. !996 .. : ' "--"- SUBJECT: Kenal. Fuellng'.:$ylteln REF: Relolutlon ~.17 FOR: . Council meeting of 2/21196 We need to resolve how the city Is going to handle the system for fueling our equipment. The two altematlves that are belng discuseed are: City oontraotln0 fumMhln_a lfld dbDendna fuel. at the aontrA~ora 8ervl_e~_ otetlon. ' At the council meeting of D~ember 20, 1995, we discussed awarding Kenal Airport Fuel Service the contract..to 'provide this eervi~e. (See Attachment A~) Public .WorkS.felt no one else could provide this full.time 'service, and therefore it. was a sole source:and did. not need to go oUttO bid. Council.dlre~ted ma.toga out to bid be willing'to staff' or change thetr, business to 'provide full time servl=e... The bid results were incorPOrated into. Resolution N°. 96.10 (Attachment B)' for .the council meeting of February 7, 1996. Council defeated the resolution after suggesting the' city continue to use our own service station which is'the second alternative diMuSsed below. Attachment C is a sample of a print out that Kenai Airport Fuel Service can give us which will provide us with a lot of Information. City_ ontlnue to ov!de. Itl_own..fuellna service _m_s_tlo In order for the City to continue to provide its own fueling service station we would have to repair and upgrade our exlsttng fueling facility, See. Jack La Shot's memo (Attachment D). The city has hired an ele~trical company to get our existing fUel pumps running. This is a bare minimum that hopefully will get us up and running again but it's reliability is still questionable. Resolution No. 96-17 is up for council approval on February 21, 1996. This resolution Will award the delivery of fuel to the city at the generator tanks, city dock, and the city fueling system in the shop area to Kenal Airport Fuel Service. Passing this resolution will mean page 2 ' Fueling System.' CoUncil- 2/21/96 .the. city will continue to provide its own fueling service StatiOn, Kenal Airport Fuel Service. 'wil!..simply.keep OUr fuel tanks full.. -"'." . :'..' ... ...~.. There:'is aisoa.pUrchase order to stateWide P~roleU. m for.S8,2.21.50 for fuel ' disPensers ..' going to.council on February.21, '1996... It will:take 31 t0.$ weeks fOr delivery 'and. IS. fOr materials only, I will have another.pUrchase' order for..labor to Install the pumps at the Mar~ '6, 1..996 coUncil-meeting;': The concmm siab':($6, ' .000.00) and the .rOof-'.ov. er. the.~ .. disPaneer area'($2.5,000,00) will be put tn.'next'. Years budget,: I don't-think the'roof oVer. ' the :tank and containment basin ($15,000;00)is needed at'this time." After the city's Safety Committee suggested contracting out the fueling service station, the City Manager directed me to pursue lt. I was very hesitant and did not think the problems could be worked out. Sm=urity and availability.were of major cencems to me. As you ~an see from m.Y memo, Attachment A, I think the Problems have been worked' out. In summary, if council ohcoses to go with: #1,' City contracting the furnishing and dispenSing.fuel at the contractors Service station,' then:'.. A. -Resolution 'No. 96-i0 (Attachment B)needs to'be reconsidered-'or reintroduoed and pa~ al~roval- ot counoil. City to continue to provide its own fueling service station, then: A. Council. pass ResOlution 96'17; B. . Council pass P.O. to 8tatewide. for $8221.50. Council later approve of remaining upgrades and repairs to our sendce station. KK/kw C~IdPDOCSI~PROJECT\FU~L&,COUNC!L oHEM .FROM: DATE: SUBJECT: FOR: MEMORANDUM Tom Mann!nan, city Manager... All Department Heeds!'. ~'. Kelth Komells,:-Publto Works Director .December 14, 1995..': Kenll ,FuMing ~l~tem " Counclt meeting of December r20, 1996 ' Information I I ..111' . I . II .. I'.1] . '1 . I I .... I II ; II .... [I .__1111 IIl___lllJll_.__' J I III II I . :[ ,._.[ I .. I A~ requested 13y the City Manager, I. have investigated the possibility. of contm~lng.°ut the city's fueling system. Kens. Airport Fuel Service, Inc., Is the only place in Kanal that will provide 24 hOur, everyday access for diesel ~ gasoline. They are considered a sole scums for this service. They are located right next to'our Public Works Shop'on Airport WaY... Attached is Kenal Airport Fuel Service, Ir~.'s proposal dated Demmtber 8, 1995. I recommend we accept this proposal ~ start using their fuel and service for the following Their system is mtJ~h more modem and. they have'better equiPment. They woUld take OVer the' responsibility of'meeting the.OSHA,,. EPA, end' ADEC.: rules and..' ..regulatiom,. in~luding fuel spills, tank and underground 'piping'. -' requirements, and reporting. .. ..- -, They wouk:l provide the service of fumishing the pumps, motors, elsotrir, alpower, and keeping the .su~ly tanks full. Presently the oity is expefler~ing.major electrical and-pump problems. Our fueling area Is a grovel surface thus increasing:'... fuel spill clean up problems while their area is cenorete and.aSphalt pavement. The difference in the cost of the fuel is: Kens. Airport Fuel Doyle's Fuel ~ Gasoline $.e3o/gal. $.seo .045 .06 I have worked with Kenai Nrport Fuel In coming up with a method that would provide the city some seemdty in dispensing the fuel. Each piece of equipment has'an .equipment number that will first have-to be entered on the keypad, followed by pushing ENTER. Page 2 Fueling'System 12/14/95 Each employee that uses fuel will be given a card they will keep on them at all" times. They will Insert this card after entering the equipment number. "'.:...,'.: .... Each e.mployee will have their own PIN that no one will Mow, which when ent~d: ..... on the keypad after Inserting their card, will authorize them to receive fuel. '.:' .' Kenai Airport Fuel is going to Install a video surveillance system with a time/date ?..' stamp, Kenai Airport Fuel will bill the city with a detailed invoice that will reveal: 2. 3. 4. Date and time of fueling. Name of fueler. Equipment number and/or vehicle description, Fuel type and number of gallons. Our goal is to have this new system up and running by January 1, 1996. Each employee that uses fuel will have to go into Kenai Airport Fuel Services to receive their card and give them their secret PIN. I have spent a lot of time trying to Improve our fueling method, but thera is always room for Improvement. I request the Department, Heads, or anyone else, conta~ me with any,. suggestions that might help our operation. It Is not too late to make changes. I talked with Cary Graves, City Attomey, about this change tn our futura fueling method and he does not think we will need council aotion. I am requesting this memo be pla~KI in the council packet of December 20, 1995 as an informational item. I am asking for any comments, suggestions, or recommendations from the City Council. KK/kw C:~I,;POOCS\PROJECT\FUEL\SYSTEH.NEt4 KEN I AIRPORT FUEL SERVICE, INC. December 8, 1995 tttentlon, Kelth Kornells, ~llc Works Dlr~or Dear Kelth, Kenai Airport Fuel Service, Inc. proposes to prOVSde the City of Kenai with 24 hour access to diesel fuel and regular unleaded gasoline from our automated gas station. Our fueling system has state of the art leak detection and monitoring that exceeds EP~and DEC requirements, end our Petrovend K255~ Cardlock provides security and accountal~llitY. We are presently installing a video surveillance system with time/date stamps. Use of our system will eliminate the need for the City to upgrade and maintain their present fuel site, resulting in reduced exposure to lial~llltY and 8avingo in accounting time. We reconunend a two card system for the City, with. One issued to a specific vehicle, and one (with a PIN) iSSued to each driver. The "cards" can either be a physical card; (resembles a credit card) and/or an entry code ~hich.!a",:'.'..· manually entered at the pump. With this two card system'~y, ou will receive a detalled lnvolclng with breakdo~nsbYVehi'cleS and drivers, time and date of transaction, number of gallons., fuel type, etc.. You can even request an odometer entr'y"'with a reasonal~llity factor. Billing will be by invoice/statement on a monthly basis. We offer to provide fuel to the City of Kenal at~.the prices listed below and is based on current "Posted Refinery' Rack Price', Diesel S .83/gallon Unleaded Gasoline S .89/gallon Kenal Airport ~uel Service will notify the City of Kenai of any changes, either an increase or decrease, in the 'Posted Refinery Rack Price". If you have any questions please contact Reean Pitts at 283-?893, or Dean Elchholz at 283-57~$. We look forward to working with you. Sincerely, Dean Elchholz C Vi ce-Pres ident DE/rp suggest ed 'by:'.*, Administration. · ~ (3trY OF KENAI ,' ,..'.'.' " .ESOLUTIO" NO;'.ee..'10 A CONTRACT,FOR-FUEL,,:$ERVlCE TO KENAI~NRPORT FUEL SERVI.CE~:.::INO. AT.....' -... ': THEr UNIT PFIIOE$.LISTEi:)iBE[OW FOR',. FUFINlSHINGAND' DELIVEFIING-'FUEL .TO .' THE .DOC-KI AND' .GENERATOR , TANKS AND FOR'FURNISHiNG AND DISPENSING ." 'FUEL AT-.TH' .E!R SERVICE. STATION. ....... .- .'.'.:.:. · , ,'." . ,-.!...~. ,. ,.., ,.., :., ,~ .... .. WHEREAs;': the follOwing, bide· were received..,..on.'. January 24, 1096,"for 'the above' referenced,, fuei ,and service:'. ' ; . .. " Furnish, and Deliver Fuel (DOCk & QenemtOr TankS) " "' ~ ~ Diesel ~ Unleaded GaSoline Kenal AirP0rt .'.', " Fuel Service $.785/gal. $.695/gal.$.e30/gal. Doyle, s Fuel SeW. ice!: Inc,, .,. $.7es/gaL. $,745/gal. .. ,. . $.e40/gal.. · Fumldi:~mdDIspenilng:~Fael it their "ervlce"itatlon. Unleaded Posted RaCk Price (Tasoro) $,e75/gat, '. . $,SlS/gaL DieSel #1 ~ Unleaded' .. Fuel Service WHEREAS, the following pflces' am the p0St~:'::',m~ prices at Tesoro on January' 24, ' WHEREAS, 'the Unit PriCe for fuel will fluctuate both. as an Increase or decrease at the same rate.as the posted, r~k ,price at Kenal. T~o,' and WHEREAs, 'the recommendati°n from the"PUtilioI Works Department .is .t.o award the contract to Kenal Airport Fuel ~rvice, Inc. foi~:-~:i pricas: quoted' in their bid, and WHEREAS, the Council' of'the City of Kenat has determined that Kenai-Airport Fuel Service, InC.'s bid Is the'loWest responsible.bid andaward to this bidder would be' In the best interest of. the City, and .. WHEREAS. sufficient monieS, am appropriated.. ', ATTAOHMEN $.e3c)/gal.$.?e~gaL'.,$.ego/gal., NOw, THEREFORE, BE IT REGOLVED By THE COUNCIL OF THE .CITY:OF 'KENAI; ALASKA, that the (=Ontra(=t' f0r'fuel sen~Ice '. be awarded to' Kenal Airport' Fuel ~rvi~,..ino....... for the ':amount .of.. $,78slgal. for diesel:, #!, $;695/gal, .f0r':dlesel .#'2i~i,~d": $'~ga!'::. for'.'::. unlea~' ga$oltne, for' FurniShing .and' ~iVering. Fuel. 'to' the" ~lc:'. and:;'G~erat, or' Tanks" and' for'the amount Of' $830/gal,-'for dl~l"#1., $.?80/gal. fordl~el ~;:-?and..::$;~o/gal:.. for', .. unlea' .deal gasoline' for Fumishlng and. Dispensing Fuel: at 'thel~-'Servi~' .Station:.-. .' '. '~-:!.:':. :. ~ .:: .... -: .. PA~ED' BY:' .THE COUNCI'L. OF THE CITY' OF"KENAI,. A .I. ASKA,. tli15. 7th.clay'Of'.. ..___February, '1996. ' " .. H. RAYMOND. MEASLES; VICEMAYOR ATTEST: Carol L. Frea$, City Clerk Written. by Publl(= Works:._.__.__. ApprOved by Finance:_ ' ' 1/96/kw 8~8 DATE, 91/31/96 · B'UBL ~ ~ ACCO~ ~o, . ~ ~ 1 ,,,,",,-,,-,,,--....,.....- I · V~ZCL~ "-'-----.-~...~.~. _.O~M, ~ '----......... _ GAB 8~ ''~' ~f~4A 4?49 ' -''"''----.. _ ~~ ''"~'~ ~ALS, ~ 29. 062 ~ ~'" !S.OO ~ ~T.~. -- '''T''''- 399 38. I GA8 ~-- -- ---~- 41.282 , _ --. / '~ 01/38 ~9,15A '531886 54.84: GAS 8~ATZ el/24 95~20A 939836 VEHICLE STATI 01/26 OAS BTATZ 01/39 04056A 531886 VI~tZCLE TOTAL~ VEHZCLE#i 44 OAS 8~A~Z 01/23 06,56A V~HICLE#, 45 OAS .~_/'.Ar! 01/19 e2,S:~A e~es?e GAB m2ATZ 9~/22 06,36A 810570 GAS S~A~Z 9~/25 ~2,39P 810579 GAS STA~Z el/3e 05:56A 810570 VEHICLE TOTALS, VEHICLE#, 46 OAS 8TATZ 01/28 04,28A 266933 TOTALs, 9 9- 0 VEHICLE 'EHICLE#, 47 bINUED . . UNL 13.384 1.309 .... ----- "' 13. 384 ''"''---- 17.52 U1~ 15.28 1.309 , 20.00 -UI~ ?.638 1 399 10.e0 22.918 19.4 19.4 30. O0 399 25.39 25.39 UNL 12.328 1.309 16.14 UNL 14.19 1.309 18,$7 VNL 12.986 1.309 17.00 UNL 12.296 1.399 16 19 51.8 .... -----. 67.81 7. 636 7.636 1.399 10.90 10.00 NO 8 . LOCATION DATE-" TIeR ..... . . - ...,;' . :, ,.' ,,".' .-. , · ., . :: ' :. .':.),.:/':.... .......... . V~HICL:~I, 47' ~A~.STATI 01/22' O2rI2?A 70$7,~2..'" '.' O.... ., ~' ~,258 1,'309'..,.. 9,50 GRB STAT! 01/25' 118.'46A'70S?,32'. VBHICLE TOTALS V~HZCLI#e 48 GAS 8TATI 91/23 99t51A.474913 GAS STATI 91126'-04,18A.474913 V~HICLE TOTALS', .' ..1.0,82'. 1.300, · ' ':' 1.8.0?8 .... 14.16 .~.' - 23.66 309 309 UNL 9.356 12.25 tmL 9.5.5 12.50 18.906 24.75 VEHICLRS 8 49 GAB 8TATI el/20 92~.48A GAS STATI el/25 '.02,.56A VEHICLE TOTALS.~. 568355 -'.68355 9 UNL 12.974 1.399 26..?38' 16.85 t~)TAL. :'.:' AV~IItAGt~:.:-' '. 'SALI~ I~ED~RAL ": STATE' ... L~AL S~: mmmmnmmmnmmmmmmmmmmmummm~mmmnmnmnnmmmmmmummn;;~ ...... mum UNI,EIU3ED 234,046.-. 0.9005 '-229,48.- ..... ~4.3.i:-59 ..... ..-'..1B.72::-.: o,ee .X4.:58. 306.3? "':' ': TO~A~"~~B~$ ~IS ACCO~. '306.3~ MEMORANDUM IIII ill II '"' _ I ,,- II TO: Kelth Komelis, Public Works FROM: Jack La Shot, City Engineer ~ DATE: ' January 31, 1996 SUBJECT: Fuel Syetem Upgrade I II I I III I I III I · I I I III1[~',' I have prepared some bu. dget cost figures to repair the fuel system at the maintenan yard. The first option is simply to provide new electrical eervtce to the existing pumps :.mid the required rewiring. New, power to the pumps (to code) $ 3,000.0O Rewiring pumps & dispensers 1.000.0O $ 4,000.0O The next option is to replace the Bennett dispensers. I have been told by Bob Rehm of :~ 8tatewide Petroleum that these dispensers are nearly obsolete now and difficult to get parts for. He thinks the turbine pumps are ok. ii! New dispensers Labor to install $7,000.0O Add a concrete slab around the dispensers and raise the dispensers about 1 foot. (20' x 40' slab) Materials Labor $ 2,500.00 Put a roof over the dispenser area. (24' x 44' x 14') drifting. Materials & Labor - Contract Put a roof over the tanks & containment basin. Materials & Labor - Contract Enclose sides to prevent Shew $25,O00.0O (20'x 34' x 10') $15,000.0O JUkw C:~MK)OC~ECT\RJEL\I)UNPS.~ I I I II IIII