HomeMy WebLinkAboutResolution No. 2023-36KENAI
CITY OF KENAI
RESOLUTION NO. 2023-36
Sponsored by: Administration
A RESOLUTION AUTHORIZING A SERVICE AGREEMENT TO PROVIDE REFUELING SERVICES
FOR CITY FACILITY FUEL TANKS.
WHEREAS, a formal Invitation to Bid was released on April 20, 2023 with bids due on May 10, 2023 for
a term service agreement to provide diesel refueling services at various city facilities; and,
WHERES, the agreement is for a three-year term starting July 1, 2023 through June 30, 2026 with the
option to extend for two additional single years by mutual consent of both parties; and,
WHEREAS, one bid was received by the City as detailed below:
Bidders
Crowley Fuels
;and,
OPTS Rack Average Bidder's Price per Gallon
$2.723 $2.663
WHEREAS, the bidder's invoiced price per gallon for diesel fuel will adjust based on the Oil Price
Information Services (OPIS) Reports; and,
WHEREAS, award to Crowley Fuels 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 City Manager is authorized to execute a term service agreement with Crowley
Fuels for furnishing and delivering of diesel fuel to various locations in the City from July 1, 2023 through
June 30, 2026. The contract may be extended by mutual consent of the parties for two additional one-
year terms without further Council action.
Section 2. That the City Manager is authorized to issue corresponding purchase orders to Crowley
Fuels in the total amount of $90,000 for the FY2024 fiscal year.
Section 3. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 17T" DAY OF MAY, 2023.
ATTEST:
Michelle M. Saner, MMC, City Clerk
Approved by Finance
Brian Gabriel Sr., Mayor
New Text Underlined; [DELETED TEXT BRACKETED]
�ENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.75351 www.kenai.city
MEMORANDUM
TO:
Mayor Gabriel and Council Members
THROUGH:
Terry Eubank, City Manager
FROM:
Scott Curtin, Public Works Director
DATE:
May 10, 2023
SUBJECT:
Resolution 2023-36 — Crowley Fuel Service Agreement
The purpose of this memo is to request Council's authorization to execute a term service
agreement to Crowley Fuels, to supply and deliver diesel fuel to various City facilities from July 1,
2023 through June 30, 2026 with the option to extend for two additional single years with mutual
consent of both parties at the discretion of the City Manager. This Service Agreement will not
extend beyond June 30, 2028.
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 agreement anticipates 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 97.8% of the OPIS price. As
example if diesel fuel was OPIS priced at $2.50/gal our city cost would be $2.445/gal if $4.00/gal
our city cost would be $3.912/gal.
For FY24, the value is approximately $90K, with Kenai Municipal Airport (KMA) Operations being
the largest consumer at approximately $85K annually with the remainder going toward the backup
generators. Backup generators being serviced include the Airport Terminal, Public Safety
Building, Water Reservoir. and Sewer Treatment Plant. As a result several Purchase Orders will
be provided to the vendor from each of the department budgets affected.
Award of this agreement will allow for continuation of operations and is in the best interest of the
City, Council's approval is respectfully requested.