DISCLAIMER

 

07-0101R


RESOLUTION AUTHORIZING THE PROPER CITY OFFICIALS TO ENTER INTO A CONTRACT WITH INTER-CITY OIL COMPANY, INC., FOR BOTH STATION AND BULK FUELS AS NEEDED DURING YEAR 2007 FOR AN ESTIMATED AMOUNT OF $1,000,000.

BY COUNCILOR JOHNSON:

     RESOLVED, that city officials are authorized to enter into a one-year contract (with four one-year renewal options) with Inter-City Oil Company, Inc., to furnish and deliver both station and bulk fuels as needed from March 1, 2007, through December 31, 2007 for various departments/divisions in accordance with specifications, at an estimated amount of $1,000,000, terms net 30, FOB destination, payable from the Fleet Services Fund 660, Department/Agency 015, Object 5212.


STATEMENT OF PURPOSE:  This resolution will authorize the purchase of fuels (diesel, gasoline, ethanol, etc) for vehicles and equipment as needed during 2007 from Inter-City Oil Company, Inc., for an estimated $1,000,000 per year to be paid from the fleet services fund.


The price is based upon a fixed constant of $.06 cents per gallon (approximately 80 percent of fuel usage) for service station fuels and $.06 cents per gallon (approximately 20 percent of fuel usage) for delivered fuels. The bid constant is added to the Duluth daily rack average price plus applicable taxes. The estimated price is based on year 2006 usage.


The city received RFPs (requests for proposals) which were evaluated by an internal committee. Inter-City Oil Company, Inc., had the best and most complete proposal according to an established point system.


This contract has four one-year renewal options.


Station and Bulk Fuels

Requisition 07-0001

Holiday Stationstores, Bloomington, MN

FleetCor Technologies, Norcross, GA

Inter-City Oil Company, Inc., Duluth, MN