ACTION REQUESTED:
Title
Communication from the City Manager, Public Works Director, Fire Chief and Finance Director/Comptroller with a Request to APPROVE and Execute a CONTRACT with HERR PETROLEUM OIL for Large Loads (Tanker) and AGLAND FS INC for Small Loads (Transport) for a Two-Year Contract to Purchase Fuel at $.015/gallon (Tanker) and $.09/Gallon (Tranpsort) Over the Low Rack Price from the Daily Opis (Oil Price Information Service) Report Plus Freight ($.0025 Tanker and $.00 Transport).
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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. 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 Agland FS for the small loads (Transport). See Attached Sheet.
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: Herr Petroleum 00647 - 201231
Ag Land FS 03160 -201231
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Finance