HomeMy WebLinkAboutResolution No. 2021-50KENAI
CITY OF KENAI
RESOLUTION NO. 2021 - 50
Sponsored by: Administration
A RESOLUTION OF THE CITY OF KENAI, ALASKA, AUTHORIZING A SERVICE CONTRACT
EXTENSION TO PROVIDE REFUELING SERVICES FOR CITY FACILITY FUEL TANKS
WHEREAS, Crowley Fuels LLC was awarded a service contract on August 3, 2018 through
approval of Resolution 2018-37 to furnish and deliver fuel to various City facilities for generators
as well as operational fuel at the airport; and,
WHEREAS, that agreement runs through June 30, 2021 and may be extended by mutual
agreement for two additional single year contract extensions; and,
WHEREAS, the City has been satisfied with the services being provided to date and on June 23,
2021 Crowley Fuels LLC agreed to hold their pricing for the next year to the same Oil Price
Information Service (OPTS) market average percentage savings originally agreed to; and,
WHEREAS, that savings equates to the City paying approximately 97% of the market average
cost for fuel; and,
WHEREAS, award of this service contract extension will allow our facilities and operations to
continue to provide expected services, and the award is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Kenai City Council authorizes the award of a Service Contract Extension
to Crowley Fuels LLC through June 30, 2022 valued at the total approximate amount of $54,500.
Section 2. That the City Council authorizes the City Manager to issue the following purchase
orders to Crowley Fuels LLC: Water Plant Generator $500, Waste Water Plant Generator $1,000,
Public Safety Generator $500, Airport Terminal Generator $2,500, and Airport Operations Fuel
for equipment $50,000.
Section 3. That this Resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of July, 2021.
ATTEST:
tt ; • W wv'
J mie einz, MMC, City Clerk
BRIAN GABRIEL SR., MAYOR
KEN.4
Resolution No. 2021-50
Page 2 of 2
Approved by Finance:
KENAI
City of Kenai I Do Ficialgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www.l<enaixity
MEMORANDUM
TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Scoff Curtin
DATE:
June 29, 2021
SUBJECT:
Resolution 2021-50
The purpose of this memo is to request Council's support of Resolution 2021-50 authorizing a
service contract extension to Crowley Fuels LLC. Crowley Fuels has been operating under a
three year contract with an optional two one year extensions available, to provide fuel delivering
services to various city facilities. This contract extension being requested is for year four of this
agreement.
This service provides operational fuel for the City backup generators as well as the Airport
Operations Facility which fuels various apparatus equipment in support of Airfield Maintenance
Operations.
The original agreement was contracted in a way that anticipated fluctuations in the market price
of fuel through utilization of the Oil Price Information Service otherwise known as (OPIS). OPIS
provides regional cost averages for fuel and this agreement provides for a City purchase price of
97% of the OPIS price. As example if diesel fuel was OPIS priced at $2.50/gal our city cost would
be $2.425/gal if $4.00/gal our city cost would be $3.88/gal.
This contract, valued in the range of $54K and intended to run through June 30, 2022, provides
a good value to the operations of the City.
Council's support is respectfully requested.
The City of Kenai I www.kenai.city