ITEM TITLE:
Approval of Contract Award to Petro Star, Inc., for Fuel Supply and Delivery
SUBMITTED BY: Nathan Duval, Capital Facilities Director
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: Various
RECOMMENDATION:
Approve Contract Award to Petro Star, Inc. for Fuel Supply & Delivery.
SUMMARY STATEMENT:
The City’s fuel supply contract was last bid in 2013 and renewed for the period of the agreement necessitating rebidding the contract. The solicitation was posted on April 17 and closed on May 10. North Pacific Fuel, Petro Star Inc., was the only respondent to the solicitation. Compensation is based on a markup to the weekly Oil Price Information Service (OPIS) Anchorage price for diesel products and the Edmonton OPIS for propane.
The agreement is for two years with options to extend for three additional one-year renewals.
The current 2019 budget includes fuel line items totaling approximately $475,000.
The Hospital and Schools benefit from the City’s pricing structure but pay their invoices directly to the vendor.