00-0238R

RESOLUTION AWARDING CONTRACT TO INTER-CITY OIL COMPANY, INC., FOR FUEL, IN THE AMOUNT OF $363,150.

BY COUNCILOR EDWARDS:

RESOLVED, that Inter-City Oil Company, Inc., be and hereby is awarded a contract for furnishing and delivering fuel for the administrative department, in accordance with specifications on its low specification bid of $363,150, terms net 30, FOB destination, payable out of various funds, various depts./agencies, various organizations, various objects.



STATEMENT OF PURPOSE: This resolution will authorize the purchase of approximately 400,000 gallons of fuels (heating, diesel, gasoline, etc.) for various departments/divisions from Inter-City Company, Inc. for $363,140 to be paid from various Funds, various Agencies, various Objects. This is the first year of a potential 5-year contract which is based upon a fixed constant of $0.05 per gallon (80% of fuel usage) for service station fuels and $0.06 per gallon (20% of fuel usage) for delivered fuels. The bid constant is added to the Duluth daily rack average price plus applicable taxes. The previous contract was with Inter-City Oil and included a fixed constant of $0.0425 per gallon for both service station fuels and delivered fuels. Inter-City Oil Company, Inc. was the only response of the four above companies who were sent bid requests. There is sufficient budget appropriation in each of these divisions to award this resolution. Bid Nos. 00-0042 & 00-0043
 
Tabulation of bids received: March 28, 2000
Inter-City Oil Company, Inc., Duluth, MN $363,150
Amoco Oil Company, Inc., Minneapolis, MN No response
Como Oil Company, Inc., Duluth, MN No response
Holiday Station Stores, Inc., Duluth, MN No response