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HomeMy WebLinkAbout~Master - Termination of Fuel Contracts for CyRide RESOLUTION NO. 15-416 RESOLUTION APPROVING TERMINATION OF CYRIDE FUEL CONTRACTS AS PROVIDED BY THE TERMINATION FOR CONVENIENCE CLAUSES FOR THE CITY OF AMES,IOWA WHEREAS, over the past 10 years, CyRide has purchased fuel under contracts to reduce administrative duties associated with this frequent purchase and to gain the best possible price for this large budget expense; and, WHEREAS,at the December 9,2014,City Council meeting,council members awarded the purchase of fuel during calendar year 2015 to REG Energy, and this contract began on January 1, 2015, and will expire on December 31, 2015; and, WHEREAS, in May 2015, CyRide's previous vendor,Keck Energy, informed CyRide that its previous fuel contract with this firm was still in effect; and, WHEREAS, the original bid for this previous contract was to be for a three-year period beginning January 1, 2014, and ending December 31, 2016; and, WHEREAS,however,in reviewing the bids received at the end of 2013,it was decided that only the first 12-month period (calendar year 2014) was advantageous to CyRide; therefore, the Transit Board of Trustees and Ames City Council approved fuel under this contract for only calendar year 2014; and, WHEREAS, the intent of this action was to constrict the longer period bid proposals to calendar 2014 only;however, due to an oversight by the Purchasing Department and CyRide staff, the specific contract language did not reflect this constriction and reflected a contract through 2016; and, WHEREAS,as this was not intentional and staff was unaware of this error until May of this year,CyRide entered into a new contract with REG in December of 2014,and Keck Energy also bid on this new fuel contracting opportunity, but was not the lowest bidder; and, WHEREAS, the result is that CyRide currently has two contracts for fuel purchases for calendar year 2015: Keck Energy for calendar years 2014, 2015, and 2016; and, REG Energy for calendar year 2015; and, WHEREAS,when this was brought to CyRide staff s attention in May 2015, CyRide, City Purchasing and Legal staff developed a plan that could be fair to both vendors by invoking a specific federal clause (Termination for Convenience) in both contracts; and, WHEREAS, this approach provides benefit to both parties during calendar year 2015 and allows both vendors to rebid at the end of the year for the next calendar year; and, WHEREAS, CyRide staff has discussed this resolution with both vendors, and it is acceptable to each of the parties; and, WHEREAS, in order to invoke this clause,both the Transit Agency Board of Trustees and the Ames City Council will need to terminate for convenience the REG contract(in July)and Keck contract(in December), as provided for in the federal contract clause; and, WHEREAS,the Transit Board of Trustees approved the termination in both contracts at its June 23,2015,meeting,and if approved by the Ames City Council,the City's Legal Department will draft written notification to REG Energy and Keck Energy. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the termination of the REG Fuel Contract(RFP#2015-106)immediately and the Keck Energy Fuel Contract(RFP #2014-100) effective December 31, 2015, as provided by the Termination for Convenience contract clause included in both fuel procurements is hereby approved. ADOPTED THIS 14th day of July, 2015. Ate• x C...-AAal Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Goodman Voting aye: Betcher, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: Corrieri Resolution declared adopted and signed by the Mayor this 14th day of July, 2015.