ACTION REQUESTED:
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Communication from the City Manager, Public Works Director, Fire Chief, and Finance Director with a Request for the Following:
A. APPROVE an AGREEMENT Renewal with HERR PETROLEUM, for One (1) Additional Year, Ending October 31, 2022, to Provide FUEL DELIVERY SERVICES (Large Loads), for the City of Peoria at $.015/Gallon Over the Low Rack Price from the Daily OPIS (Oil Price Information Service) Report Plus Freight $.0025/Gallon; and
B. APPROVE an AGREEMENT Renewal with AG-LAND FS, for One (1) Additional Year, Ending October 31, 2022, to Provide FUEL DELIVERY SERVICES (Small Loads) for the City of Peoria at $.09/Gallon Over the Low Rack Price from the Daily OPIS (Oil Price Information Service) Report.
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BACKGROUND: The City of Peoria and County of Peoria currently participate in a joint contract for the purchases of fuel services. The City solicited bids for delivery of unleaded and diesel fuel to various City and County locations in 2019. There were Eleven (11) invitations sent to vendors and Five (5) responded. Analysis showed Herr Petroleum provided the best price for large loads (Tanker) and Ag-Land FS for the small loads (Transport). Both contracts are attached.
FINANCIAL IMPACT: Funding for the purchase of fuel is provided in Public Works (Fleet) account number 1013024-504104 and Fire Department Account's 101-2233-504104 and 1012233-504106.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: Minimal savings for each order, but substantial time saving for City staff, eliminating the need to call numerous wholesale vendors.
IMPACT IF DENIED: The City could purchase on the spot market by calling numerous vendors or rebid the contract. If either of these options are chosen, due to the increase in fuel prices, we should expect to pay a much higher delivery fee.
ALTERNATIVES: Rebid the contract or buy off the spot market.
EEO CERTIFICATION NUMBER: Ag-Land FS 03160-220331 Herr Petroleum 02038-211231
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Choose an item.
3. Choose an item.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Choose an item.
3. Choose an item.
DEPARTMENT: Finance