HomeMy WebLinkAbout8 Motor Vehicle Fuels Agenda Item # 8
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EF
PL-11-AC Utility District
ACTION
To: Board of Directors
From: Ed Taylor
Date: May 20, 2009
Subject: Consideration of the Award of an Annual Contract for Motor Vehicle
Fuels
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of$15,000.
2. HISTORY
Each year the TDPUD fleet uses about 13,200 gallons of unleaded gasoline and
about 18,600 gallons of#2 diesel at a cost averaging between $72,000 and $147,000.
3. NEW INFORMATION
On April 29, 2009 the District issued a request for bids for the supply of gasoline and
diesel fuel contract for our fleet of vehicles. On May 13th, bids were opened. One bid
was received from Western Energetix and was found to be responsive. The cost
proposal received is based upon the Oil Pricing Information Service (OPIS) daily
wholesale market price average plus a freight charge of$0.005 per gallon and a $0.16
per gallon profit and overhead charge. The overall cost for fuel provided by Western
Energetix under this contract would be approximately $0.70/per gallon less than
current retail pricing.
4. FISCAL IMPACT
There are sufficient funds in the FY09 budget of $160,000 for fuel costs for the
District's fleet of vehicles.
5. RECOMMENDATION
Award the contract to Western Energetix for the purchase of Diesel and Gasoline for a
period of two years with the option to extend the contract for one additional year for an
annual not to exceed amount of$160,000.
Ed Taylor Michael D. Holley
Water Utility Manager General Manager