07-14-2009 CC RPT 44 - Laserfiche WebLink

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City Council Memorandum TO: FROM: SUBJECT: ISSUE: HONORABLE MAYOR AND CITY COUNCIL FIRE DEPARTMENT DATE: July 14, 2009 ITEM NO: 44 WARD: All AWARD OF BID 6745 FOR THE PURCHASE OF MOTOR FUEL FOR CITY FIRE STATIONS The issue before the City Council is whether to award Bid No. 6745 to Desert Pacific Oil, LLC and Merit Oil Co. for the purchase of fuel for City fire stations for the period of July 1, 2009 through June 30, 2010. RECOMMENDATIONS: That the City Council Award Bid No. 6745, as follows: 1. Award Bid No. 6745 for motor fuel to Desert Pacific Oil, LLC in the amount of $113,875.90, and Merit Oil, in the amount of $115,167.80 for the period of July 1, 2009 through June 30, 2010; and 2. Authorize the Purchasing Services Manager to issue an Annual Purchase Orders for fuel required by City fire stations. BACKGROUND: The Fire Department has fuel tanks located at most City fire stations to fuel Fire Department vehicles and equipment. As the Annual Purchase Orders for motor fuels have expired, the Purchasing Division and Fire Department recently solicited formal bids and received responses from several local area fuel vendors. As fuel tanks at the fire stations are relatively small (500 gallon), many vendors are not willing or able to make deliveries. After evaluating the bids submitted, the Purchasing Division and the Fire Department have determined that Desert Pacific Oil, LLC was the lowest responsive bid. The bid allows for two (2) awards to a primary and a secondary vendor, so as to guarantee that these tanks will be consistently filled and maintained. Desert Pacific Oil, LLC was the lowest responsive bidder with a price structure consisting of a fixed margin of $0.12 above the wholesale cost. Merit Oil was the second low bidder with a price margin of $0.14 above the wholesale cost. As the lowest bidder, Desert Pacific Oil, LLC would receive the 44-1