HomeMy WebLinkAbout12-Consideration of the District's Fuel Contract for 2015Agenda Item #12
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From:
Date:
Subject:
Board of Directors
Jim Wilson
February 11, 2015
Consideration of the District's Fuel Contract for 2015
CONSENT
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board awarded the contract, and only the Board can approve the contract
termination.
2. HISTORY
The 2015 Gasoline and Diesel Purchase bid opening took place on November 19,
2014. Board approved the contract with Hunt & Sons Inc. at the December 3, 2014
Board meeting.
3. NEW INFORMATION
The contractor is unable to deliver fuel as specified in the contract documents.
District personnel attempted to use the designated Commercial Fueling Network
(CFN) card-lock fueling site on January 2nd only to discover that the site had been
locked out to all CFN card users, except Flyers Energy card use.
Hunt & Sons provided a temporary solution, by allowing the District to fuel at two local
fueling stations, at a $0.05 discounted rate; however this is not within the terms of the
contract.
A written notice of non-compliance was sent to the Contractor on January 9, 2015,
giving Hunt and Sons until January 30, 2015 to meet all terms and conditions of the
contract. To date, contract terms and conditions have not been met, as they have not
identified a local fueling site where the District can be properly billed for the price
differential over unbranded Sacramento rack average rates, as outlined in the contract.
Flyers Energy was the second responsive bidder for the 2015 fuel purchase, and has
agreed to honor their pricing, which was submitted in the bid process.
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager
4. FISCAL IMPACT
Hunt and Sons submitted $0.12 per gallon differential and Flyers Energy submitted a
$0.18 per gallon differential. This means, for the District’s annual fuel contract, Flyers
Energy fuel will cost approximately $1,700 above the Hunt & Sons fuel price.
Funding for these procurements are included in the approved FY15 operating budget.
5. RECOMMENDATION
a) Terminate the 2015 Gasoline and Diesel Purchase contract with Hunt & Sons Inc.
for failure to deliver product as specified in contract documents.
b) Award a new gasoline and diesel purchase contract to Flyers Energy for an annual
amount not to exceed $165,000