DISCLAIMER

 

07-0194R


RESOLUTION SUPERCEDING RESOLUTION 07-0101 AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH INTER-CITY OIL COMPANY, INC., FOR BOTH BULK AND STATION FUELS AND DELIVERY SERVICE AS NEEDED FOR YEAR 2007, NOT TO EXCEED $1,120,000.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are authorized to enter into a one year contract, with four one-year renewal options, substantially the same as that on file with the city clerk as Public Document No. __________, for fuel and delivery services of both bulk and station fuel during year 2007 in an amount not to exceed $1,120,000, terms net 30, FOB destination, payable from Fleet Services Fund 660-015-5212.

     RESOLVED FURTHER, that this resolution supercedes and replaces Resolution 07-0101.


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 $1,120,000 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) for the fuel services, 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