01-25-21 Regular Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: January 25, 2021 Requested By: Ray Mayo, Director Department: Public Works • Report Resolution Ordinance Exhibits: Bid Tabulation, Pricinq Exhibit, Bid Access Report, Sun Coast Bid, and AJ Hurt- Reladyne Bid Appropriation Source of Funds: 001-General Fund Account Number: 001-6146-515-9094 Amount Budgeted: $506,832.00 Amount Requested: $398,252.00 Budgeted Item: �•' Yes �' No SUMMARY & RECOMMENDATION Responses to Bid #21007- Bulk Fuel were received on December 22, 2020. The Bid was advertised in the Bay Area Observer and posted on Public Purchase. A total of 14 vendors were notified, of which 24 vendors downloaded the bid document, resulting in six (6) vendors submitting bids. However, two (2) bids were deemed unresponsive due to incomplete documentation. This fuel contract is established for a one-year duration with an option of two additional 1-year renewals. Also, the bid is structured to award a primary and secondary supplier. The low bidder is Sun Coast Resources Inc. with the second low bid submitted by AJ Hurt Inc.-Reladyne. The bid sheet indicates differential costs per gallon that will be added to the OPIS (Oil Price Information Services) rack average upon delivery. The OPIS wholesale rack average fuel costs fluctuate daily. The $398,252.00 requested amount is the budgeted amount remaining and uncommitted. Fuel inventory is budgeted for the entire fiscal year, and is charged to each divisional user on a monthly basis. ACTION REQUIRED BY CITY COUNCIL Approval or other action to award Bid #21007 Bulk Fuel Contract to Sun Coast Resources Inc. as a primary vendor and AJ Hurt Inc. - Reladyne as a secondary vendor, with annual expenditure not to exceed annual budgeted amounts. Approved for the City Council meeting agenda