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Staff recommends bulk-fuel contract with Petroleum Traders; council asks for price-adjustment language
Summary
Staff recommended awarding a bulk-fuel contract to Petroleum Traders Corporation with a one-year term not to exceed $900,000 and four automatic one-year renewals; staff said the bid would save roughly $10,000 annually compared with the incumbent and agreed to confirm contract language on market price adjustments.
Public works staff presented results of a competitive solicitation for the citys bulk-fuel needs and recommended entering a contract with Petroleum Traders Corporation.
Staff said two responses were received and that, based on estimated annual volumes (about 100,000 gallons of gasoline/unleaded plus diesel and dyed diesel for equipment), Petroleum Traders provided a lower overall cost than the incumbent, producing an estimated annual savings of approximately $10,000. Staff recommended a one-year contract not to exceed $900,000 with four automatic one-year renewal options.
Council members asked whether contract pricing will adjust with market fluctuations. Staff said market adjustment is part of the contract structure and agreed to verify the exact language and email the council the confirmation. No formal contract award vote was recorded during the work session; staff said the recommendation will be placed on the consent agenda for council consideration.
