HomeMy WebLinkAbout~Master - Fuel Purchase for CyRide RESOLUTION NO. 09-135
RESOLUTION APPROVING WAIVER OF FORMAL BIDDING PROCEDURES
AND AUTHORIZING SOLICITATION OF BIDS FOR FOUR FUEL PURCHASE
CONTRACT PERIODS FOR CYRIDE
FOR THE CITY OF AMES
WHEREAS,in light of volatile fuel prices experienced during the current fiscal year,CyRide staff
has explored options to control fuel expenses in the 2009/10 budget; and,
WHEREAS,currently,CyRide purchases fuel on the spot market approximately every 7-14 days,
paying market price for 7,500 gallons of fuel at the time of purchase, and CyRide purchases
approximately 300,000 gallons of fuel each budget year expending between$700,000 and$1,000,000;
and,
WHEREAS, one major tool to stabilize these fuel costs is the use of fuel contracts, which are
contracts obligating the buyer to purchase an asset(fuel) at a predetermined future date and price, and
under this type of purchase,CyRide would be required to purchase a minimum of 42,000 gallons of fuel
under each fuel contract,which would provide fuel for a two-month period; and,
WHEREAS,under the proposal reviewed and approved by the Ames Transit Agency Board of
Trustees, CyRide would solicit bids in one bidding process, for four individual, two-month contract
periods, and this would cover fuel purchases for an eight-month period from May through December
2009; and,
WHEREAS,if approved by the City Council,CyRide will work with the Purchasing Division to
solicit premium bids on fuel contracts; and,
WHEREAS, at the end of December, the Trustees will evaluate this fuel purchase program to
determine if it was beneficial, accomplishing its goal of stabilizing fuel costs and benefitting CyRide's
overall budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,Iowa, that
the waiver of formal bidding procedures is hereby approved,and staff is authorized to solicit bids for four
two-month fuel purchase contract periods, allowing staff to award up to four contracts under this bid at
a cost not to exceed$504,000.
ADOPTED THIS 14'day of April, 2009.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Popken
Voting aye: Doll, Goodman, Larson, Popken, Rice
Voting nay: None Absent: Mahayni
Resolution declared adopted and signed by the Mayor this 14t'day of April,2009.