CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year Two to Contract 18-022, Motor Fuel Tank Wagon, to Heritage FS, Inc. for an amount not to exceed $165,000
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works - Fleet Services Division (DPW) provides approximately 32,000 gallons of gasoline, 25,000 gallons of diesel fuel, and 2,000 gallons of off-road diesel fuel for vehicles and standby generators. The purpose of this contract is to supply fuel to the City’s fuel storage tanks that require tank wagon delivery.
In March of 2018, Contract 18-022, Motor Fuel Tank Wagon was approved by the City Council for a three-year term from April 1, 2018 through March 31, 2021, with two, one-year options to extend the contract. The first option year was awarded by City Council on February 16, 2021.
DISCUSSION:
During the first extension term of the contract, Heritage FS, Inc. completed 50 deliveries and proactively offered winter blend diesel as required for colder temperatures.
Based upon the vendor’s performance, DPW is recommending the extension of the contract for the second option year. Heritage FS, Inc. has agreed to maintain the rates and terms provided for under the contract.
The term of the second option year is April 1, 2022 to March 31, 2023, with no options
remaining on the agreement.
FISCAL IMPACT:
CIP: N/A
Motor Fuel Tank Wagon is expensed to the fuel account listed below. A total of $1,276,200 has been budgeted for fuel in 2022. The requested award is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31351100-541403 |
General Fund |
$1,276,200 |