HomeMy WebLinkAbout2003-01-27 03-59 ORDERItem No 03-59
Date: January 27, 2003
Item/Subject: ORDER - Authorizing the City Manager to Enter Into a Fixed price Contract
with Irving Oil Corp. for fuel Oil and Diesel Fuel for Fiscal Year 04
Responsible Department: purchasing
Commentary:
Over the last few years, it has been the City's practice to purchase No. 2 fuel oil and diesel fuel on a
fixed pnce bas's. Last January we requested bids and were able to lock in prices for these products for
$ 71 and $ 72 respectively. This years paces are higher due to the uncertainty in Iraq and Venre7uela;
as a result, the oil markets have been changing quite rapidly.
In an effod to give the City the greatest possible latitude to lack in prices at, hopefully, the best fixed
rate, I issued a request for fired price bids that was opened Friday, January 17, 2003. Irving Oil Corp.
was the most competitive vendor as noted on the attached bitl tabulation.
These prices are based upon the January 17 futures contracts for the months of July 2003 Mmugh
June 2004. We will be able to lock in a pnceat any time from now until the end of June at the prevailing
market prices for No. 2 fuel ail and diesel fuel.
On January 22, 2003 the Finance Committee reviewed Me bids and approved the recommendation far
the City Council to award the contract to Irving Oil Corp. and to authorae the City Manager to enter into
&ad pnce contracts once the decision is made to lock in the fixed price. The attached Council Order
will authorize Me City Manager to enter into these fxed price contracts.
Department Head
Managees Comments:
City Manager
Associated Information: Bid Tabulation and Council Order
Finance Director
Int duced for
Passage
First Reading page _ of
_ Referral
03-59
v - AssiguxlwComrcilor neaaie Ianwn 27. 2003
CITY OF BANGOR
(TITLE.) Order, /wtlwrizirg the City Manager In Enter Into a Fixed Price Contract with Irving 011 Corp.
for Fuel Cil and Wesel Wel for Fiscal year 04
WHEREAS, energy prices are highly volatile and difficult to predict; and
WHEREAS, R has been the recent practice of the City to lack in fuel prices for each fiscal year in an
effort W reduce both cost and risk; and
WHEREAS, in order to acNeve the maximum benefit W Me City, It may be necessary for the City to - -
enter into a contract quickly.
NOW, THEREFORE, BE IT ORDERED By THE CITY COUNCIL OF THE CIN OF BANGOR, THAT.
The City Manager is audaumed W enter Into a liked price contract with Irving Oil Corp, for vadous fuel
and energy propucts for the ply's Fiscal year 04
m cxxr comcn
]amup 2]. 2003
xacieo Haas aaa seeanaea
for Passage
Pa86ed
1R
ORDER
ITITLEJ Anchoxizing the city ravager to
Evter into a Plzea Pzice Covtra[c Hth
Irving 011 corp. for 4 l 011 ana Dieul
Fort tog Firsual r... 04
CITY OF BANGOR
BID TABUTALON Bid Cleaning: 0127=
ANNUALFUEL CONTACT
bring Oil
Perbmouth NN
Webber Energy Fuels
Bangor, ME
Coast RNer Co.
&ewer, ME
ITEM DESCRIPTION
Est.
Amount
Unit
RVx
Total
Unit
Pnce
Total
Unit
Frkz
TOW
No.2 Fual Oil- Fixed ones
Transpod Del'wenes over 5060 gallons
741,850
0.0141
$ 803940.08
0.8795
$ 652531.26
09083
$
672.338.66
Small Truck Deliveries Under 5,D00 gallon
169.407
0.8795
$ 148,993.46
08795
$ 10.9.010.40
0.9063
$
153533.56
General Asastance Deliwme5
16,000
08795
$ 14072.00
0.8795
$ 14073.80
08863
$
15,780.80
Tests
927,257
$ 767.005.54
$ 81561526
$
041,653.02
Diesel FuaiFixed Pride
Transport DsKusias over5000 gallons
262,000
0.8274
$ 216,778.00
0.9298
It 243 (DO 80
D9443
$
247,I06.W
Small Truck Delivalin under5.000 gal.
11600
0.8024
$ 1443.84
0.9299
$ 1087,84
0.9443
$
1,510.08
Totals
263,600
$ 218.222.64
$ 245121.64
$
248,91740