BY COUNCILOR JOHNSON:
RESOLVED, that Resolution 05-0721 is amended and the proper city officials are authorized to contract with Como Oil and Propane Company for an additional 12 months, through October 31, 2007, to furnish and deliver liquid propane for the public works department in the amount of $63,349.00 plus sales tax of $4,117.69 for a new total of $67,466.69, terms net 30, FOB destination, and payable as follows:
(a) $57,872.10 (Lakewood location) from the Water Fund 0510, Department/Agency 500, Organization 1955, Object 5390;
(b) $1,918.92 (Garfield) from the Water Fund 0510, Department/Agency 500, Organization 1940-2410, Object 5212; and
(c) $7,675.67 (Garfield) from the Gas Fund 0520, Department/Agency 500, Organization 1940-2410, Object 5212.
STATEMENT OF PURPOSE: This resolution will authorize a 12 month extension of the city’s current contract with Como Oil and Propane Company for $67,466.69 ($63,349.00 plus sales tax of $4,117.69), payable from the water and gas funds.
This action will provide for the purchase and distribution of approximately 44,300 gallons of liquid propane as follows:
(a) 38,000 gallons for heating at the Lakewood water treatment plant; January 1 through June 30, 2007;
(b) 6,300 gallons for vehicle fuel at 520 Garfield Avenue; January 1 through December 31, 2007.
The extension through October 2007 is needed because the anticipated conversion to city natural gas did not happen.
The original bid process took place in October of 2005. Como Oil and Propane Company of Duluth, Minnesota, was the only company to respond.