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Council told Petroleum Traders recommended for bulk fuel; staff estimate modest savings
Summary
Public Works recommended a new bulk fuel contract with Petroleum Traders Corporation (one‑year initial term, up to $900,000; four one‑year automatic renewals); staff estimated about $10,000 annual savings versus the current vendor and said price adjustments in the contract track market indexes.
Public Works staff presented results of a bulk fuel procurement and recommended entering a one‑year contract (with four automatic one‑year renewal options) with Petroleum Traders Corporation for bulk delivery of gasoline, clear diesel and dyed diesel to city fleet and equipment.
Mike Loggins summarized the May 11 RFP results: two vendors responded and staff calculated total estimated annual outlays based on current usage volumes; Petroleum Traders’ bid produced estimated annual costs roughly $10,000 lower than the incumbent vendor under present price assumptions. Staff recommended a contract not to exceed $900,000 for the initial year and said typical contract language ties delivery pricing to market indexes so per‑gallon costs will fluctuate with the market.
Council asked whether price adjustments would allow the city to capture market price decreases; staff said the contract is indexed to market pricing and pledged to confirm and follow up with a written clarification. Council also asked about tax/fee treatment for bulk municipal fuel purchases; staff said they would follow up with details.
Staff said the item will be placed on the July 7 consent agenda; no formal approval occurred at the work session.
