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16 - Contract for furnishing & delivery of gasolineItem No. 16 TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: FUEL BIDS DATE: 11-7-2017 BACKGROUND: The: City periodically takes bids for the purchase of unleaded and diesel fuel to be used by the various departments of the City. STATUS OF ISSUE: The City requested bids from fuel vendors with the bids being due October 30, 2017. Bids were received ftorn three vendors proposing a total of six different options. The dollar cost per gallon is summarized on the bid tabulation. 'There is also a brief description of each option, The staffreviewed the bids considering price, administrative software, equipment, vendor reputation, alternate fueling locations, and total cost over the contract period plus any Y optional extensions of the contract. 1"'he staffbelieves that McCraw Oil Bid I B offers the best combination of these factors. BUDGET: The City budgeted a total of $511,472 for fuel in the 2017-18 budget with this amount being spread out among various departments. RECOMMENDATION: Motion to approve Bid I B from McCraw Oil Company contingent upon the City Manager executing contract with McCraw Oil Company that has been reviewed and approved by the City Attorney. CITY OF PARIS 1,8700 0.0800 0.0400 0,2000 0.0000 2,1900 FUEL BID SHEET 1.8593 0.1615 0,0550 STATE 0.0031 GRAND McCraw Oil Option 1B FUEL PROFIT DELIVERY GAS OTHER TOTAL REGULAR UNLEADED GASOLINE (87 octaine) . ............... . COST MARGIN COST TAX COSTS COST Blankinship 00 1.7234 0,0800 0.0400 0.2000 0.0000 2.0434 McCraw Oil Option 1A 1.7215 0.1615 0,0550 0.2000 0.0029 2.1409 McCraw Oil Option 1B 1.7215 0.10210 0.0550 0,2000 0.0029 2.0814 McCraw Oil Opflon 2 1.7215 0.0620 0.0550 0.2000 0.0029 2.0414 McCraw Oil Option 3 13215 0.0110 0.0550 0,2000 0,0029 1,9904 Douglas Distributing 1.6015 0,0100 0,0575 0,2018 0.1300 2,0000 ON -ROAD DIESEL Blankinship Ol 1,8700 0.0800 0.0400 0,2000 0.0000 2,1900 McCraw Oil Option 1A 1.8593 0.1615 0,0550 0,2000 0.0031 2.2789 McCraw Oil Option 1B 1.8593 0.1020 0,0550 0.2000 0.0031 2.2194 McCraw Oil Option 2 1.8593 0.0620 0,0550 0.2000 0.0031 2.1794 McCraw Oil Option 3 1,8593 0.0110 0.0550 0,2000 0,0031 2,1284 Douglas Distributing 1,8353 0.0100 0,0379 0.2018 0.1300 2,2100 OFF-ROAD DIESEL Blankinship Oil 1.8750 0.12 0.04 0 0 2.0350 McCraw Oil Option 1A 1.8643 0.1615 0.055 0 0.00314 2,0839 McCraw Oil Option 1B 1,8643 0.102 0.055 0 0,00314 2.0244 McCraw Oil Option 2 1.8643 0.062 0,055 0 0.00314 1.9844 McCraw Oil Option 3 1.8643 0.011 0.055 0 0,00314 1,9334 Douglas Distributing 1,8404 0.0100 0.0379 0.0018 0,1300 2,0200 Blankinship Oil -This bid provides the City with two locations at which City vehicles may obtain fuel. Equipment at these locations is owned and maintained by the vendor. This is the basis that the City has operated under for a number of years. McCraw Oil Option 1A- Under this option, McCraw would place two fuel tanks (one gasoline, one diesel) on City property along with alll other necessary equipment. Also included would be software to track usage and generate management reports. McCraw would own and maintain the tanks and equipment. Agreement would be for three years with two three year options to continue with the markup decreasing in the renewal periods by $0.1345 to 0.027 cents per gaflon, McCraw Oil Option 113 -The same as 1A except the markup starts lower but decreases at a slower rate. McCraw Oil Option 2 -The same equipment as 1A and 1B above but without the management software. City downloads data and generates its own reports, McCraw Oil Option 3 -The City would purchase all equipment and purchase fuel at cost plus 1.1 cents. Douglas Distributing -This bid is essentially the same as 1A above but with larger tanks and is for five years. The markup remains constant during the agreement at $0.14 cents per gallon,