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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Budget <br />Agenda Date Requested: January 8, 2018 <br />Source of Funds: Inventory Acct <br />Requested By: Don Pennell <br />Account Number: 00161465159094 <br />Department: Public Works <br />Amount Budgeted: $542,841 <br />Report: X Resolution: Ordinance: <br />Amount Requested: $479,497.80 <br />Exhibits: Bid Tabulation <br />Budgeted Item: YES NO <br />Exhibits: Price Comparison with Houston OPIS Rack <br />Exhibits SC Fuels Bid <br />SUMMARY & RECOMMENDATION <br />Background: <br />Advertised, Sealed Bid # 18004-Bulk Fuel Supply Rebid was opened and read on November 14, 2017. Bids were <br />advertised on October 26, 2017 and November 2, 2017 in the Bay Area Observer, posted on Public Purchase and the <br />city’s website, seven (7) bids were received with one (1) being non responsive. This bid was broken out in two (2) <br />Sections, Section 1-Fuel, Section 2-Emergency Services. <br />The price of fuel for both regular unleaded and diesel is calculated on the daily price listed on the Oil Price <br />Information Service Index (OPIS) report for Houston, Texas, specifically the average rack price. Pricing was <br />requested for plus, flat or minus OPIS per gallon. Fuel is delivered to Public Works and to the Golf Course. <br />Attached is a price comparison using estimated gallons of fuel for each location, prices submitted and the December <br />4, 2017 OPIS. <br />SC Fuels submitted the lowest price for Item 3- Regular Unleaded which the City uses an estimated annual amount <br />of 174,000 gallons. Although SC Fuels was not the lowest for Items 1 and 2, staff feels that awarding Section 1 to <br />SC Fuels is the best value to the city. Using estimated quantities the annual cost for fuel, is estimated to be <br />$479,497.80. <br />The intent of Section 2- Emergency Services is to have a plan in place to obtain fuel in case of catastrophic <br />conditions. Staff is recommending awarding the contract for emergency services to SC Fuels. <br />SC Fuels also supplies bulk fuel to various surrounding cities and counties. References were sent out and they all <br />came back that they were very satisfied with SC Fuels performance. <br />Staff recommends awarding Section 1-Fuel and Section 2 –Emergency Services to SC Fuels. This contract is for a <br />period of one (1) year with two (2) additional one-year renewal options upon agreement of both parties. <br />Action Required by Council: <br />Consider approval or other action to award sealed bid #18004- Bulk Fuel Supply Rebid to SC Fuels. <br />Approved for City Council Agenda <br />Corby D. Alexander, City Manager Date <br /> <br />