Consideration and Approval of Cooperative Contract:  With Coconino County for Bulk Unleaded Fuel, bid number 2014-04 to Pro Petroleum of Phoenix, Arizona in the amount of $.0325 per gallon below O.P.I.S. (Oil Prices Information Services).

This cooperative contract will ensure the City of Flagstaff will purchase unleaded fuel that is readily available and at a cost efficient price.  A joint bid was secured by Coconino County for this service product.  The City of Flagstaff, Flagstaff Unified School District and Northern Arizona University all participated in the bidding process.  We combined all participants’ annual fuel quantity (in gallons) to leverage the purchase, increase our buying power and increase our overall cost savings.

City fleet unleaded fuel is charged through Fleet Services into the Divisions and Sections to their fleet maintenance fuel accounts.  This cooperative contract with its combined buying power will produce a savings of $.065 per gallon from the previous contract, with an annual estimated savings of $8,400.

Repair, replace and maintain quality infrastructure. 

Yes, in August 2008

1.  Do not participate in the cooperative bid.
2   Conduct our own City formal bid process.

This bid will supply the City of Flagstaff and Coconino County fleet with unleaded fuel at the City of Flagstaff Public Works yard and Coconino facility at a cost of $.0325 per gallon below OPIS . The expired unleaded gasoline contract was awarded August 5th, 2008 and was extended four consecutive times. The last unleaded contract was bid at a cost of $.0325 per gallon above OPIS.  Since 1999, the City has been involved in joint bidding for unleaded fuel.  We did that because of the cost savings over bidding separately.

The City will also pay a fuel surcharge for delivery which is the same as previously bid; the formula will be added to each invoice and is not part of the bid price per gallon. The formula used to calculate the fuel surcharge is based on the U.S. Government Energy Information Administration’s “Weekly Retail On-Highway Diesel Prices, Low and Ultra-Low Sulfur, West Coast Region”.
 
The cost per gallon will change weekly based on the Oil Prices Information Service (OPIS) index, for the Phoenix Wholesale Pricing.
 
OPIS is an Oil Price Information Service which tracks wholesale prices for major distributors in over 50,000 cities.  The contract prices for all gasoline based on a margin price in cents, to be added to or subtracted from the average rack price published by the OPIS for the type of fuel required in order to determine the actual purchase price.
 
The average price published by OPIS each Thursday shall be in effect for purchases from Monday through Saturday of the following week.  If OPIS does not publish a price for the type of fuel required in the current week, the most recent published price shall prevail.

• The combined government entities utilizing this cooperative contract increase our buying power; it provides $.065 per gallon of unleaded fuel savings to the City of Flagstaff.
• Reduce overall operation costs to fleet unleaded users.
• The existing unleaded fuel contract has expired with no remaining extensions available.
• Bidding the bulk unleaded fuel on our own would not gain the buying power we have attained with the cooperative bid.

Provides a method for fueling City vehicles in a timely manner at an established price.