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HomeMy WebLinkAboutRes2007-005 Sponsored by: Yoder -- 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: ..... 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. .... 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 ""u II II", (~;~)SEL1,"II, ~'-.I::' ............ ~-9 ~; $ &- ....O?-PO~J.:.... :0 ~ ... :.:>..v ~"":'. C;>. = :~ ___ v e. .. : : SEAL : :. .e: :f)~~ : ~ : ~ ~ \ -.- : t -:. '. V'; .....f/,...:: ~ QlX"~1'~ 1 \?... -.J.S' .:- ", "-11'." .....,.. ~) ....... 11I11 ~ OF p,.~ ,\,~~.." "'''111101\'' "/ ."/ p ,~dt t:vc J 1 I ...J ,M j ...... 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.