Title
Consider and take action on a resolution authorizing a three year agreement with Apache Oil Company for various petroleum products (Director of Public Works)
Background:
Approval of this resolution will authorize the City Manager to execute an agreement beginning June 23, 2017 with Apache Oil Company utilizing Bid # 15-031 to purchase petroleum products through June 23, 2020. Unit pricing is set at $0.046 per gallon of unleaded and diesel fuel plus the Oil Price Information Service (OPIS) spot pricing and $125.00 per tank and pump in the event that a disaster occurs and the City requires portable fueling tanks. The last three years average expenditure has been $628,476.09. Based on this average we estimate $1.9 million over the three year period.
The current contract was approved by Council on June 23, 2015 for a two-year period with the option to renew for three (3) additional one-year periods upon mutual agreement of both parties. Apache has agreed to renew the agreement. Based on price, delivery history and customer service, staff recommends extending the existing agreement beginning June 23, 2017 through June 23, 2020 with an estimated cost of $630,000 per year.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - Proposed Agreement
4. Approved 6-23-15 Data Sheet
5. Vendor Pricing
CONTRACT ORIGINATION:
Standard City contract approved by the City Attorney.
FUNDING
{ } NOT APPLICABLE
{X} Funds are available in the FY2017 budget from Motor Pool Fund/Fuel Inventory Expense 40103600-51455, Fuel Inventory Expense-FS #3 40103600-51457 and Fuel Inventory Expense-FS #4 40103600-51458
{ } Requires Budget Amendment to transfer from Account #_________to Account # _________