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Sponsored by: Yoder
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CITY OF SEWARD, ALASKA
RESOLUTION 2007- 005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH SHORESIDE PETROLEUM TO SUPPLY HEATING
AND DIESEL ENGINE FUEL, GASOLINE, LUBRICANTS, CLEANING
SOL VENTS AND ANTIFREEZE TO THE CITY OF SEWARD
WHEREAS, the City properly advertised for bids on various petroleum products; and
WHEREAS, Shoreside Petroleum was the only bidder; and
WHEREAS, the bid is responsive to the invitation to bid.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
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Section 1. The city manager is hereby authorized to enter into a contract in substantially the
form as attached hereto with Shoreside Petroleum for the period of January 1,2007 to December 31,
2007, with the option to renew for three additional years at the sole discretion ofthe city manager for
the bulk fuel price margin and lubricant unit price per the attached 12/28/06 'Exhibit A: Bid Form".
Funding for this contract will be charged to various departments.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th day of
January, 2007.
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CITY OF SEWARD, ALASKA
RESOLUTION 2007-005
THE CITY OF SEWARD, ALASKA
AYES: Valdatta, Bardarson, Thomas, Schafer, Amberg, Dunham
NOES: None
ABSENT: Shafer
ABSTAIN:None
ATTEST:
I
, ;.l
ohanna Dollerhide
Acting City Clerk
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COUNCIL AGENDA STATEMENT
Meeting Date: January 8, 2006
Through: Marvin Yoder, Interim City Manager
From: Tom Shepard, Project Manager
Agenda Item: Contract Award- Bulk Petroleum Products to Shoreside Petroleum
BACKGROUND & JUSTIFICATION:
The City of Seward properly advertised for competitive bids to purchase various petroleum
products for the period January 1, 2007 to December 31, 2007, with the option to renew for three
additional years. The products include heating and diesel engine fuel, gasoline, lubricants,
cleaning solvents and antifreeze.
A bid by Shoreside Petroleum was the only bid submitted. The bid is responsive to the Invitation
to Bid. Attached for your information is the “Exhibit A: Bid Form” which is the bid form the
bidders were to fill out. Part of the bid was bulk fuel products represented in Section A of the
Exhibit. This section of the bid was based on the best margin. The margin represents the
difference between the posted price (the price for the household consumer) and the bid price. The
key is that as the posted price fluctuates due to market value price fluctuations, the margin will
be maintained throughout the life of the contract.
The other part of the bid is for lubricant product; this is represented in Section B of Exhibit A.
These prices are unit prices. All quantities in both sections are estimated quantities based on
prior years. This number can vary widely due to unforeseen emergencies; ie during the 2005
avalanche we were on generation for a month which yielded an additional 400,000 gallons of
fuel. Our annual average fuel usage for generation is 40,000 gallons.
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
Deliveries will be charged to the individual departments, and funding has been
included in the 2007 budget.
Approved by Finance Department:
RECOMMENDATION:
City Council approve Resolution 2007-005 authorizing the City Manager to enter into a contract
with Shoreside Petroleum to supply heating and diesel engine fuel, gasoline, lubricants, cleaning
solvents and antifreeze during 2007 per the attached Exibit A: Bid Form. This contract may be
renewed for three (3) additional years at the sole discretion of the City Manager.