HomeMy WebLinkAbout~Master - Approving Cyride Fuel Purchase and Deliveray from July 1, 2022, until June 30, 2023 RESOLUTION NO. 22-305
RESOLUTION APPROVING CYRIDE FUEL PURCHASE AND DELIVERY
FROM JULY 1, 2022, UNTIL JUNE 30, 2023,
FOR THE CITY OF AMES
WHEREAS, since 2014, CyRide has been buying fuel on a market rate basis (plus a markup or
deduction) using a 12-month contracts, and bidding fuel contracts for a 12-month period reduces
administrative costs while still allowing CyRide to take advantage of competitive bidding; and,
WHEREAS, on May 16, 2022, an Invitation to Bid(ITB)was issued for the purchase of diesel
fuel from July 1, 2022, through June 30, 2023; and,
WHEREAS, bids were due on May 20, 2022, and one supplier submitted a bid; and,
WHEREAS,the Purchasing Division reached out to prospective bidders who received the ITB,
but chose not to respond to confirm that the bid specifications were not unnecessarily limiting;however,
no responses from the non-bidding vendors were received; and,
WHEREAS, CyRide performed a bid analysis using the quantities of fuel consumed and the
average pricing from January 3,2022,through May 9,2022,and Renewable Energy Group's(REG)bid
was deemed acceptable; and,
WHEREAS,CyRide had budgeted for 390,000 gallons of fuel at$2.75 per gallon,which equates
to a total cost of$1,072,500; and,
WHEREAS,fuel markets are highly volatile and based on recent pricing and fuel pro-forma,the
current budget of$1,072,500 may not be sufficient for CyRide's needs for FY 2022/23; and,
WHEREAS, in recent years CyRide has awarded the annual fuel contract for a 12-month period
and a not-to-exceed contract cost equal to the annual fuel budget and given the administrative savings and
favorable fuel bid response from Renewable Energy Group, the Transit Board voted at its meeting on
May 25,2022,to award to contract to Renewable Energy Group of Ames,Iowa, for a 12-month period,
without a not-to-exceed contract cost; and,
WHEREAS, this action will prevent the need for another contract to be bid if the diesel fuel
market remains volatile,and with a healthy Operations Fund closing balance,there are options available
to consider if the price of fuel continues to increase; and,
WHEREAS,CyRide will continue to monitor fuel prices and consumption rates carefully and will
bring subsequent actions if issues arise with the fuel budget for the upcoming year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that
the purchase of fuel from July 1, 2022, until June 30, 2023, from Renewable Energy Group of Ames,
Iowa, is hereby approved.
ADOPTED THIS 14`' day of June, 2022.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Beatty-Hansen
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Rollins
Voting nay: None Absent: Junck
Resolution declared adopted and signed by the Mayor this 14t'day of June, 2022.