8.E.
City Council Meeting - FINAL
- Meeting Date:
- 09/04/2018
- Co-Submitter:
- Di Ann Butkay
- From:
- Gregory Conlin, Public Works Manager - Fleet Services
Information
TITLE:
Consideration and Approval of Cooperative Purchasing Contract: With Pro Petroleum, Inc. for the purchase of bulk fuel under a Cooperative Purchasing Contract with Coconino County.
STAFF RECOMMENDED ACTION:
1) Approve the Cooperative Purchasing Contract for the purchase of bulk fuel from Pro Petroleum, Inc. at a cost identified in the Bulk Fuel Pricing section of the Independent Contractor Agreement with Coconino County; and
2) Authorize the City Manager to execute the necessary documents.
2) Authorize the City Manager to execute the necessary documents.
Executive Summary:
This Cooperative Purchasing Contract will ensure that the City is able to purchase readily available bulk fuel - unleaded and diesel gasoline at a cost efficient price. Coconino County conducted a formal competitive Invitation for Bids (IFB) for the purchase of bulk fuel on behalf of Coconino County, the City of Flagstaff, Flagstaff Unified School District and Northern Arizona University. By participating in the joint IFB, the City was able to increase its buying power and increase the overall cost saving.
In response to the joint IFB, Coconino County entered into a Independent Contractor Agreement with Pro Petroleum, Inc. ("Pro Petroleum") for the purchase of bulk fuel - unleaded and diesel gasoline. The City desires to utilize the benefits of the joint IFB and enter into a Cooperative Purchasing Contract with Pro Petroleum under the same terms.
In response to the joint IFB, Coconino County entered into a Independent Contractor Agreement with Pro Petroleum, Inc. ("Pro Petroleum") for the purchase of bulk fuel - unleaded and diesel gasoline. The City desires to utilize the benefits of the joint IFB and enter into a Cooperative Purchasing Contract with Pro Petroleum under the same terms.
Financial Impact:
The cost for the City to purchase unleaded and diesel gasoline for fleet is charged through Fleet Services into the Divisions and Sections to their fleet maintenance fuel accounts. This Cooperative Purchasing Contract with its combined buying power will enable a competitive cost for vehicle and equipment operation for City services.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Has There Been Previous Council Decision on This:
Yes, in 2013 the Flagstaff City Council entered into a Cooperative Purchase Agreement with Coconino County to purchase unleaded fuel from Pro Petroleum.
Options and Alternatives:
1. Enter into the Cooperative Purchasing Contract and receive the benefits of the joint Invitation for Bid; or
2. Conduct a separate City Invitation for Bid process.
2. Conduct a separate City Invitation for Bid process.
Background and History:
The formal competitive joint Invitation for Bids (IFB) was conducted by Coconino County in April of 2018. The IFB combined all annual fuel quantities (in gallons) from the City of Flagstaff, Flagstaff Unified School District and Northern Arizona University who participated in the joint IFB to leverage the purchase, increase the participants buying power and increase overall cost saving.
Pro Petroleum submitted the lowest responsive, responsible, bid. The negotiated contract price for bulk fuel - unleaded and diesel gasoline shall be the margin price (in cents, to a maximum of four decimal places) for each line item, to be added (or subtracted) from the "Phoenix OPIS Weekly Newsletter with 5- Day Average" price published each Thursday by the Oil Price Information Service (O.P.I.S.) for the type of fuel required in order to determine the actual purchase price. The average price published by O.P.I.S. each Thursday shall be in effect for purchases from Monday through Sunday of the following week.
Pro Petroleum submitted the lowest responsive, responsible, bid. The negotiated contract price for bulk fuel - unleaded and diesel gasoline shall be the margin price (in cents, to a maximum of four decimal places) for each line item, to be added (or subtracted) from the "Phoenix OPIS Weekly Newsletter with 5- Day Average" price published each Thursday by the Oil Price Information Service (O.P.I.S.) for the type of fuel required in order to determine the actual purchase price. The average price published by O.P.I.S. each Thursday shall be in effect for purchases from Monday through Sunday of the following week.
Community Involvement:
N/A
Expanded Options and Alternatives:
Inform