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HomeMy WebLinkAbout~Master - Contract Renewal for Oils, Lubricants, and Fluid Analysis RESOLUTION NO. 23-395 RESOLUTION APPROVING CONTRACT RENEWAL FOR PURCHASE OF OILS,LUBRICANTS,AND FLUID ANALYSIS FOR FLEET SERVICES AND CYRIDE FOR THE CITY OF AMES,IOWA WHEREAS, on June 28, 2022, the City Council awarded a contract for the purchase of oils, lubricants, and fluid analysis to Diamond Oil Company of Des Moines, Iowa. The initial contract period was from July 1,2022,through June 30, 2023. The contact offered optional annual renewals over the next four years for a maximum of five years; and, WHEREAS,Fleet Services and CyRide currently purchase oil and lubricants from a single contract. Oils and lubricants are purchased to replenish Fleet's parts inventory. Therefore, oils and lubricants used for services of the operating departments' fleet vehicles and equipment are billed to the respective departments as a pass-through cost. CyRide maintains its own inventory of required oil and lubricants and uses them to maintain CyRide's vehicles; and, WHEREAS, combining oil and lubricant purchases allows Fleet Services and CyRide to leverage the combined volumes to receive more favorable pricing. This contract also includes oil analysis kits to assist staff with properly maintaining vehicles; and, WHEREAS, staff is recommending approval of Year Two of the contract with no price increase with Diamond Oil Company for Fiscal Year 2023-24. The contract period will be from July 1, 2023, through June 30, 2024. The Fleet Services operating budget estimates $14,700 and the CyRide operating budget estimates $56,000 for the purchase of oils, lubricants, and fluid analysis in FY 2023/24 for a combined estimated operating budget of$70,700. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that awarding year two of a possible five-year contract for the purchase of oils, lubricants, and fluid analysis to Diamond Oil Company of Des Moines, Iowa, for FY 2023/24 in accordance with unit prices bid is hereby approved. ADOPTED THIS l Ith day of July, 2023. W- 4�z e 4�� Renee hall, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Corrieri Voting aye: Beatty-Hansen, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: Betcher Resolution declared adopted and signed by the Mayor this 1 lth day of July, 2023.