HomeMy WebLinkAboutResolution No. 2022-54A RESOLUTION AUTHORIZING A SERVICE CONTRACTEXTENSION TO PROVIDE REFUELING
SERVICES FOR CITY FACILITY FUEL TkNKS,
WHEREAS, Crowley Fuiiels LLC was awarded a service contract on August 3, 2018 through approval
Resolution 2018-37 to furnish and deliver fuel to various City facilities for generators as well
oport; and,
WHEREAS, that agreement runs through June 30, 2022 aind may be extended by mutual agreement for
one additional single year contract extension-, and,
WHEREAS, the City has been satisfied with the services being provided to: date and on June 21, 2022
Cr
I owley Fuels LLC agreed to hoild their pricing for the next year to the same Oi;l Price Information Service
(OPIS)i market average percentage savings originally agreed to; and,
WHEREAS, that savings equates to the City paying approximately 97% of the market average cost f
fuel,- and,
WHEREAS, award of this service contract extension will allow our facillities and operations to continue
provide expected services, and the award is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THIIE COUNCIL OF THE CITY OF KENAI, ALASKk
Section 1. That the City Council authorizes the award of a Service Contract Extension to Crowf
Fuels LLC through June 30, 202�3 valued at the total approximate amount of $84,50101
ATTEST:
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'MteheIre-MSgQe r' 9C, City Clerk
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City of Kenai 1 210 Fidal o Ave, Kenai, AK 99611.7794 190T283,7535 1 www.6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Director of Public Works
DATE: June 28, 2022
SUBJECT: Resolution 2022-54
The purpose of this memo is to request Council's authorization to execute a service contract
extension to Crowley Fuels LLC. Crowley Fuels has been operating under a three year contract
with optional two one year extensions available, to provide fuel delivering services to various city
facilities. This contract extension being requested is for year five 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 (OPTS). 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 approximate amount of $84K and intended to run through June 30,
2023, provides a good value to the operations of the City.
Council's support is respectfully requested.