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HomeMy WebLinkAbout~Master - Contract for purchase of fuel for CyRide for calendar year 2017 RESOLUTION NO. 16-700 RESOLUTION AWARDING CONTRACT TO KECK ENERGY FOR PURCHASE OF FUEL FOR CYRIDE CALENDAR YEAR 2017 FOR THE CITY OF AMES WHEREAS, CyRide purchases approximately 420,000 gallons of fuel each year, divided into smaller purchases every seven to ten days; and, WHEREAS, in order to procure fuel, CyRide, in cooperation with the City of Ames Purchasing Department, annually releases a fuel bid for both diesel and bio-diesel fuel with bio- diesel levels varying from 5%to 20%, depending on the weather and season; and, WHEREAS, for the 2017 calendar year, bids were received on November 18, 2016, and under the bid specifications, fuel would be purchased at the market rate with the competitive portion of the bid being the vendor's charge above or below that market rate for delivery of the fuel; and, WHEREAS, the bid of Keck Energy of Des Moines, Iowa, is the overall lowest cost bid; and, WHEREAS, in addition to awarding the fuel delivery bid, CyRide will need to establish a maximum or total contract amount for fuel costs so that the Transit Agency may order fuel when needed every seven to ten days under the successful bidder's contract; and, WHEREAS, in estimating CyRide's maximum fuel cost for calendar year 2017, staff estimated its fuel usage for the year (420,000 gallons) and multiplied this times the budgeted price per gallon for the current and next year; and, WHEREAS, CyRide received approval for the vendor bid and fuel cost from the Ames Transit Agency Board of Trustees at its November 30, 2016, meeting. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that award of contract to purchase fuel for CyRide during calendar year 2017 from Keck Energy of Des Moines, Iowa, is hereby approved, and that establishing the maximum total contract amount for fuel and delivery in an amount not to exceed $1,207,500 is hereby fizrther approved. ADOPTED THIS 131' day of December, 2016. A. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Gartin Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Orazem Voting nay: None Absent: Nelson Resolution declared adopted and signed by the Mayor this 13t''day of December, 2016.