DISCLAIMER

 

08-0124R


RESOLUTION AMENDING RESOLUTIONS 05-0721 AND 07-0225 AUTHORIZING CITY OFFICIALS TO EXTEND THE CONTRACT WITH COMO OIL AND PROPANE COMPANY THROUGH DECEMBER 31, 2008, AN INCREASE OF $74,298.66, FOR A NEW CONTRACT TOTAL OF $255,165.25.

CITY PROPOSAL:

     RESOLVED, that resolutions 05-0721 and 07-0225 are amended, authorizing city officials to extend the contract with Como Oil and Propane Company through December 31, 2008, for the purchase and delivery of liquid propane for the public works and utilities department in the amount of $69,764 plus $4,534.66 sales tax for a combined total increase of $74,298.66, terms net 30, FOB destination, and payable as follows:

     (a)  $65,966.10 from the Water Fund 510, Department/Agency 500, Organization 1955, Object 5390 (Lakewood location);

     (b)  $1,666.51 from the Water Fund 510, Department/Agency 500, Organization 1940-2410, Object 5212 (Garfield location); and

     (c)  $6,666.05 from the Gas Fund 0520, Department/Agency 500, Organization 1940-2410, Object 5212 (Garfield location).


PWU/PURCH DS:le 02/01/2008


STATEMENT OF PURPOSE:  This resolution will authorize an extension of the city’s current contract with Como Oil and Propane Company for the purchase and delivery of liquid propane for $74,298.66, payable from the water and gas funds. This extension through December 31, 2008, is necessary because the anticipated conversion to city natural gas still has not happened.


This action will provide for the purchase and delivery of 42,800 gallons of liquid propane to the following locations:

 

(1)  38,000 gallons for heating at Lakewood Water Treatment Plant, 8130 Congdon Boulevard, for estimated usage January 1 through June 30, 2008.

(2)  4,800 gallons for vehicle fuel at 520 Garfield Avenue, for estimated usage January 1 through December 31, 2008.


The original bid process took place in October of 2005. Como Oil and Propane Company of Duluth, Minnesota, was the only company to respond. Como Oil has agreed to hold the bid constant at $.04 as negotiated for year 2008.


Bid No. 05-0664

Requisition 08-0053

Tabulation of bids received October 12, 2005

Como Oil and Propane Company

market + $.04/gas