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,