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Home My WebLink About2004-07-12 04-230 ORDERICIL ACTION July 13, 2009 Item No. 2lb 230 Item/Subject ORDER -Award of Floating Price Contracts for Wel Oil, Diesel Fuel and Gasoline and AUNonzadon of the City Manager m Enter Into Fixed Price Fuel Contracts with Irving Oil Corp. for Fiscal Year 05 Responsible Depa.b. aV.Purchasing Commentary: Over the last five years, Me City has purchased No. 2 fuel oil and diesel fuel on a fixed price basis from Irving Oil Corp. During the last two years the City requested bids in January because there were ower prices at that time of year. This year, however, prices were higher in January, and we decided to wait for more favorable market prices. Since January, prices have spiked and are now easing off somewhat. The City issued a bid request in June for both floating price and far fixed price fuel contracts. Irving Oil was the low bidder for all fuels except No. 5 Fuel Oil - see attached bid tabulation. (The fxetl prices for No. 2 and diesel were based upon line June 22 futures contracts forme months of July 2009 through June 2005.) Fixed price contracts are not available for gasoline or No. 5 fuel oil Our plan is to award floating price contracts for all fuels and to enter into fxetl price contracts for No. 2 fuel oil and diesel (bicdiesel) fuel when and gprices are favorable. On July 7, 2004 the Finance Committee reviewed the bids and approved the moommendation for the City Council to award contracts for No. 2 fuel oil, diesel fuel, biodiesel and gasoline to Irving Oil Corp. and award the contract for No. 5 fuel oil to Sprague Energy. In addition, the Finance Committee also approved the recpmmentlatlon W authorize the City Manager to enter into lived price contracts once the decision is made to lock in the fixed price. The attached Council Oder authorizes floating price contract awards and authorizes the City Manager to enter into fixed price contracts without further Council review Department Head Recommend approval. Cry Manager A45OCia[ed Information: Bid Talbulafan and Council Order r Fnance Director Legal Approval: Solicitor Introduced for X Passage _ Nrst Reading Page _;L of 1 Referral 06-230 Assigned w Councilor Cmck July 12, 2006 CITY OF BANGOR (TITLE.) Order, Award of Floating Price Fuel Contracts and Authorization for the City Manager to Enter Into Fbad Price Contracts for Fuel 011, Dksel and Bio -Diesel for Rsal Year 05 WHEREAS, the City has issued bid requests for No. 2 fuel oil, diesel fuel, bio -diesel, gasoline and No. 5 fuel oil; and WHEREAS, the City requested bids for both Beating price and fixed pike contracts; and WHEREAS, the City received low bids from Irving Oil Coq. for No. 2 fuel oil, diesel fuel, bio-cliesel and gasoline; and WHEREAS, the City received only are del from Sprague Energy far No. 5 fuel oil; and WHEREAS, energy prices are highly volatile and dMwltto predict; and WHEREAS, R has heel the recent practice of the City to lock -in fixed fuel prices far each fiscal year in an effort to reduce both art and risk; and WHEREAS, fuel prices are currently slgntfiantly higher than the fix prices paid by the City last year; and WHEREAS, fuel prices may become more favorable at some time in the future; and WHEREAS, in order to achieve the madmum benefit to the aty, it may be necessary for the CRY to eller add a contract qukW. NOW, THEREFORE, BE rt ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR, THAT: Hatirg price contracts are hereby awarded m Wrg 011 Corp for No. 2 fuel dl, diesel fuel, bio-0iesel and gasoline and Sprague Energy, for No. 5 fuel all. BE IT FURTHER ORDERED THAT, at any Foird where it is detemlrled N be advantageous, the Cdy Manager is hereby summoned! W eller into fixed price contrams with Irving Oil Corp. for No. 2 fuel oil and diesel fuel products for the Cilys Rscal Year 05 IN CITY COO9CIL July 12, 2006 lbtiw Made and Seconded for Passage PaeePa�1 C I # 06-230 (TITLE,) Award of Ploatfae Price Past Contract and Authorfratiou for the City hanger to Eater Into Plead Price Contracts for Fuel Oil Vendors Recommended: Irving Oil & Soracue Oil Number of Bids Sent: 4 Number of Bids Received: 3 Date Advertised: lune 15. 2004 Bid Opening Date: lune 23. 2004 Past Experience with Vendor: Excellent _Goad Fair —Poor _No Prior Experience If no experience, references checked or other method of ventlor reliability established _. OTHER COMMENTS: Award Floating price contracts Por No. 2 Fuel Oil, Diesel Fuel, B odiesel Fuel and Gasoline to Irving Oil Corp., the low bidder (or these fuels. Award a Floating price contract for No. 5 Fuel Oil to Sprague Energy the only bidder for this product: The City will purchase No. 2 Fuel Oil, Bio -Diesel and Diesel Fuel on a until such time when the market is favorable m enter Into fixed prii products. It is anticipated that the mos[ favorable prices 0 ur September but these markets con be highly volldle and u p bk Ob -230 Y° CITYOFBANGOR - AWARD RECOMMENDATION _ BID ITElYl Fuel Contracts–City Wide DEPARTMENT: purchasing BUDGET REFERENCE: Requisition No.: N/A Account Number: Various Budgeted Amount: $ N/A Available Balance: $ N/A Total Amount of Award Recommended: I N/A Vendors Recommended: Irving Oil & Soracue Oil Number of Bids Sent: 4 Number of Bids Received: 3 Date Advertised: lune 15. 2004 Bid Opening Date: lune 23. 2004 Past Experience with Vendor: Excellent _Goad Fair —Poor _No Prior Experience If no experience, references checked or other method of ventlor reliability established _. OTHER COMMENTS: Award Floating price contracts Por No. 2 Fuel Oil, Diesel Fuel, B odiesel Fuel and Gasoline to Irving Oil Corp., the low bidder (or these fuels. Award a Floating price contract for No. 5 Fuel Oil to Sprague Energy the only bidder for this product: The City will purchase No. 2 Fuel Oil, Bio -Diesel and Diesel Fuel on a until such time when the market is favorable m enter Into fixed prii products. It is anticipated that the mos[ favorable prices 0 ur September but these markets con be highly volldle and u p bk CITY OF BANGOR Page I a I BIDTABULATION BIO Opening: 051 X4 ANNUAL FUEL CONTRACTS Inning Oil Cory Bangor, ME Welter Energy Fuels spargue Eneyr Bangor, ME Cape Eliz daeth ME ITEM DECRIPTION Unit Price Item Towl Unit Prim Item Unit Ilam ToW Price Total 10 No.2 FLOATING PRICE No.2 Fuel OilOps Avea June) 2004 1.0813 1.0813 Environmental From; 0.007238 0X07238 PGE On 00263 00596 1.1 Total Amomrt- Transport DeliverieaM,000 1.1i3838 1.148138 Additional Cost Per gal, DelNeEes 4,0110 Inal. 00750 SAME 1.2 Total Amount- NON -Trane ort DidixeNr84,000 1.188838 1.148138 No, 2, Fuel Oil. General Assistance, 0"s AW 1.0813 t0813 Environmental Fero 0007230 0.007230 Add On 00453 0.0596 AEEptronal Cost nor gal. DeINeres 4,000 gal 00750 1.3 Total Amount for Gerwi Assistance 13016*01 1.146138 Sumtiame for emergency deliveries 50.00 150000 2.0 N0.2 PIXEL PRICE- Tranalrort Deliverieea4,000 NYMEX Cosi, Frei Temmal Fees and Ma in 1 1239 EnNronmenlel Fars 000723¢ 2.1 Total Fired Price- Transport DeliveriesM.000 1.131lM No.2 Fixed Pace -NON -Tram ort DaINarieax4,000 NYMEX Cost Fre ItL Terminal Fees and Martin 1,1909 Envlrcnmental Fees 0.007238 2,2 Tonal Fixed Price, Transport Delivenes43000 1206138 Additional Call For gallon for General Assist. 0.0200 22 Total Fixed Prim- General Assistanw 1228138 Su fiving at Corp 30 DIESEL - FLOATING PRICE Dpesrl No.1 Winter Blend - Floatin Price Trans ort 14000 DiOPTS Average (June 7,20N) esel Sit11 1.1UR Environmental Fees 0X0]238 0.00]238 Add On 0028300 00596 3.1 Total Amount- Transport D¢IiveEwM,000 1.130838 1.181 Additional cosi per ellen Eel. Under 4,000 al. 0,0750 same 32 Total Amount. NOMTrans of Dellverks4,000 1125938 Diesel No.Il mirror -Roatin Price, Transport >9.000 Drexel Opts Average June 7, 2004 1,1154 11154 Environmental Foes 000]230 000]238 ACO On 0028300 00588 3.3 Total Amount- Transport Delivniaa,4,000 1150938 1.182238 ACCilionalcesl er aimn CA Under 4,000 al. 00750 Same 34 Total Amount. NON -Transport DelMeneee4DW 1125838 4.0 DIESEL FUEL - FIXED PRICE NYME% Cost Fra M Terminal Fees am Margin 1.12440 Emionmenlal Fees OW7238 D1 Tom[ FIxaE Price Transport DelNetles,4,000 1.131638 Additional Cost per gal. DeIMales �4,000 at. 0,0750 42 Total Fixed Price- Transport Dellvenme 000 1.b16838 44 50 BIGOIESEL- FLOATING PRICE- TRANSPORT DEI->B,D)D OPIS Diesel Ave June], 20048 Elm Product Cost 1.381 Environmental Fees 0.001216 Add On 0 035300 51 Total Amount- TransporlDelivenes>9,000 1.431356 60 BrODIESEL FUEL -FU(ED PRICE - TRANSPORT DEL,9,000 NYME%Gwt Bio Cost, Frei A Terminal Fees and Margin 138550 Em�imnmental Fees 0.007230 6.1 Total Fixed Pnw- Transport Oeliverias>9,000 1392738 7,0 GASOLINE- FLOATING PRICE . TRANSPORT DEL>9,000 OPIS iovoape Pnca 87 Want Jurre],2W4 14D47 lA047 Environmental Fees 0439762 0009762 Add On 0.0325 0079990 ]1 Total Amount- Transport Delivaries>9,1100 1A41062 1.4945 Additional mA per gallon del. Under 9, 000 gal. 0.075 same 7.2 Total Amount. NON-Transpart DelivenesR,000 1.521962 8.0 No. S FUEL OIL -FLOATING PRICE Tank Car Posted Price on June ] 2004 1.0595 Environmental Fee 0.0017 And On(0.020Ti 81 Total Amount per gallon: 1.0405 Sprague Energy