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HomeMy WebLinkAboutResolution No. 2013-46Suggested by: Administration HENAAI.ALA SHA KA CITY OF KENAI � RESOLUTION NO. 2013 -46 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO CPD ALASKA LLC FOR FURNISHING AND DELIVERING DIESEL FUEL WHEREAS, the following bids were received on June 11, 2013: Bidder Price Per Gallon CPD Alaska LLC 1$3.762 Harbor Enterprises, Inc., d b a Alaska Oil Sales 1$3.811 ; and, WHEREAS, CPD Alaska LLC bid for diesel fuel is the lowest responsible bid and award to this bidder would be in the best interest of the City; and, WHEREAS, the recommendation from the City Administration is to award a contract to CPD Alaska LLC for furnishing and delivering diesel fuel; and, WHEREAS, the Bidder's invoiced price per gallon for diesel fuel will adjusted based on the Oil Price Information Service (OPIS) Reports; and, WHEREAS, the term of the contract will be from July 1, 2013 to June 30, 2016. The contract term may be extended upon mutual agreement of the parties for two additional one year periods. The contract will not be extended beyond June 30, 2018; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract is awarded to CPD Alaska LLC for furnishing and delivering diesel fuel to various locations in the City. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. 3 r ST: OA 1 an ra Modi , City Clerk Approved by Finance: �L � « -1 - - -- PAT PORTER, MAYOR ills "'Villaye with a Past, Ci with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 AI,A ALASKA KENA KA MEMORANDUM TO: Rick Koch, City Manager FROM: Sean Wedemeyer, Public Works Director SAW DATE: June 12, 2013 SUBJECT: AWARD OF BID; FUEL FURNISH AND DELIVER 2013 Rick, The following sealed bids were received at City Hall at 2:15PM on June 11, 2013 for the subject project: FUEL FURNISH AND DELIVER 2013 Bidder I Price Per Gallon CPD Alaska LLC 1$3.762 Harbor Enterprises, Inc., d /b /a Alaska Oil Sales 1$3.811 The scope of this contract 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 to establish the base price for future $ /gallon adjustment dated June 10th, 2013 was 3.71. The OPIS report used to adjust invoices shall be from the day immediately prior to the invoice date. The per gallon bid price will be adjusted for each invoice based on the percentage the Anchorage OPIS UBD RACK AVG (Unbranded Rack Average) changed. The adjusted price per gallon shall be rounded to the nearest $0.001. EXAMPLE Bid Price $3.762 /gallon OPIS UBD RACK AVG on June 10th, 2013 = 3.71 OPIS UBD RACK AVG on August 20 for Invoice Dated August 21 = 3.75 Adjusted Invoice $ /gallon = $3.762 x 3.75 / 3.71 = $3.803 /gallon CPD Alaska LLC (Crowley Petroleum Distribution) is the lowest responsible bidder. The term of the contract will be from July 1, 2013 to June 30, 2016. The contract term may be extended upon mutual agreement of the parties for two additional one year periods. The contract will not be extended beyond June 30, 2018. I recommend City Council approve Resolution 2013 -46 to award this contract to CPD Alaska LLC.