Regular Items 7.
Finance Committee November 7, 2024
- Meeting Date:
- 11/07/2024
COMMITTEE:
Finance
CONTACT:
Elizabeth Prichard
CHAIR:
Robert B. Corn
ACTION REQUESTED:
Consider recommending approval to award ITB 25-005-Bulk Fuel to AWC Propane and allow the City Manager to enter into a one (1) year contract period with three (3) additional 12-month periods, mutually agreeable extensions. (Hicks)
BACKGROUND:
Initiated by: Becky Hicks
The City posted ITB-25-005-Bulk Fuel on September 8, 2024. One bid was received on October 1, 2024, from AWC Propane of Roswell, NM.
The City posted ITB-25-005-Bulk Fuel on September 8, 2024. One bid was received on October 1, 2024, from AWC Propane of Roswell, NM.
FINANCIAL CONSIDERATION:
Bulk fuel has been included in the FY25 Budget. The proposed rate is calculated as follows:
- Diesel: Laid in Price (changes daily) + Margin of .099 - Federal Excise Tax per Gallon of .2440 and
- Gas: Laid in Price (changes daily) + Margin of .099 - Federal Excise Tax per Gallon of .184.
- On September 27, 2024, the prices were $2.625/gallon and $2.405/gallon respectively.
LEGAL REVIEW:
Contract to be reviewed by the Legal Department upon award.
BOARD AND COMMITTEE ACTION:
Infrastructure committee voted 4 to 0 to Finance Committee with recommendation on the consent agenda.
STAFF RECOMMENDATION:
Consider recommending approval to award ITB 25-005-Bulk Fuel to AWC Propane and allow the City Manager to enter into a one (1) year contract period with three (3) additional 12-month periods, mutually agreeable extensions.