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Home My WebLink AboutR-2020-131 Bulk Purchase & Delivery of Fuels; Contract Amendment with Connell OilRESOLUTION NO. R-2020-131 A RESOLUTION authorizing an amendment to contract 2020-018 with Connell Oil for the bulk purchase and delivery of fuels WHEREAS, the City of Yakima entered into a Contract with Connell Oil Inc., DBA Co - Energy, for purchased fuels and services on February 3, 2020; and, WHEREAS, City of Yakima Purchasing, along with Yakima Police Department and the Equipment Rental Division of Public Works desire to amend the Contract to add the use of Co - Energy specific CFN/Fuelman fuel cards; and, WHEREAS, use of Co -Energy CFN/Fuelman fuel cards will enable City of Yakima vehicles to fuel up at any CNF cardlock fueling site at a discount rate along with any branded retail station where Fuelman cards are accepted and eliminate payment of Federal Tax; and WHEREAS, the Contract provides that either party may request an amendment in writing; and, WHEREAS, the Contract also provides that at any time during its term, services may be expanded to include other items normally offered by the Contractor; and, WHEREAS, the addition of Co -Energy's CFN/Fuelman fuel cards will serve the best interests of the City, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: City Manager is hereby authorized and directed to execute Amendment No. 1 to Bid J11902 Bulk Purchase and Delivery of Fuels, "As Needed" Diesel Exhaust Fluid (DEF) and Incidentals Contract, attached hereto and incorporated herein by this reference, to add Co - Energy specific CFN/Fuelman fuel cards. ADOPTED BY THE CITY COUNCIL this 17th dayvember,.2020. Patricia Bye/s, Mayor ATTEST: / Sonya Cl ar Tee, City Clerk; CITY OF YAKIMA CONTRACT 2020-018 AMENDMENT No. 1 BID J11902 Bulk Purchase and Delivery of Gasoline, Diesel Fuels and Related Products THIS AGREEMENT, is made and entered into on the date of last execution, by and between the City of Yakima, a Washington municipal corporation ("City"), and Connell Oil Inc., dba Co -Energy, ("Contractor"). WHEREAS, the Contractor entered into a Contract with the City on February 3, 2020, (the Contract); and, WHEREAS, the City desires to amend the Contract to add Contractor's specific CFN/Fuelman fuel cards; and, WHEREAS, the Contract provides that either party may request an amendment in writing; and, WHEREAS, the Contract also provides that at any time during its term, services may be expanded to include other items normally offered by the Contractor, NOW, THEREFORE, in consideration of the above representations and the terms, conditions, covenants, and Agreements set forth below, the parties hereto agree as follows: Section 1 and 2 of the Contract, the Scope and Compensation of Bid J11902 Bulk Purchase and Delivery of Fuels, "As Needed" Diesel Exhaust Fluid (DEF) and Incidentals, shall be modified to read as follows: 1. Statement of Work The Contractor shall perform all work and service(s) and furnish all tools, materials, labor and equipment (collectively referred to as "Services") according to the procedure outlined in Bid J11902 Bulk Purchased and Delivery of Fuels, "As Needed" Diesel Exhaust Fluid (DEF) and Incidentals Specifications which are attached as Exhibit A, and the most recent edition of the ANSI/DOT/EPA/NEC and ASTM Standards, all of which are incorporated herein by this reference, and shall perform any alterations in or additions to the work provided under this Contract and every part thereof. In addition, Contractor shall provide Co -Energy CFN/Fuelman fuel cards which will enable City of Yakima vehicles to be fueled -up at any CNF cardlock fueling site at discounted rates or any Fuelman accepted retail station minus federal tax attached hereto as Exhibit C and incorporated herein by this reference. The Contractor shall provide and bear the expense of all equipment; work and labor of any sort whatsoever that may be required for the transfer of materials and completing the services provided in this Contract and every part thereof, except such as are mentioned in the specifications to be furnished by the City of Yakima, 2. Compensation The City agrees to pay the Contractor according to Exhibit B, attached hereto and incorporated herein, which Exhibit includes the specifications and payment schedule of itemized prices as listed in the Contractor's Bid submittal at the time and in the manner and upon the conditions provided for the Contract. The City agrees to pay the Contractor according to Exhibit C, attached hereto and incorporated herein, which Exhibit includes the specifications and payment schedule with itemized markup for over 150,000 CFN fueling sites and other Branded retail stations and truck stops, Except as modified herein, the original Contract shall remain in effect. In WITNESS WHEREOF, the parties hereto have executed Amendment No. 1 to the Contract as of the date and year first written above. CITY 4F'YAKIMA Robert Harrison, City Manager Date: I 1 Attest: • City Clerk ti CITY CONTRACT NO: i9D911-Ut f�4►V RESOLUTION NO' iZ.,it>,90-1 1 CONNELL OIL, INC. &nri-6fr By: Date: { o Z 1_ 20 U-A.D BoND (Print name) CITY OF YAKIMA CONTRACT 2020-018 AMENDMENT No. 1 BID J11902 Bulk Purchase and Delivery of Gasoline, Diesel Fuels and Related Products EXHIBIT C COMPENSATION LOCAL CFN FUELING SITES Fuel pricing for the local CFN fueling sites will be based off the OPIS Rack pricing of the day the fuel was purchased and delivered to the fuel site plus a transportation/shipping fee and State Tax. Co -Energy adds either $0.15 per gallon or $0.18 per gallon markup depending on the terms, net 15 or net 30, setup for the account(s). When account is paid within those terms, Co -Energy will give the City a prompt payment discount of $0.04. See sample below: Date of Purchase Product OP'S ; Rack Pricing Transportation Shipping Charge State Tax Term: Net 15 ° Days Term: Net 30 Days Prompt Payment Discount ; COST: ; Net 15. ` Days ` COST: Net 30 Days 10/13/20 04 Unleaded Regular (Non-Eth) 1.5625 0.1317 0.494 0.15 0.18 0.04 2.30 2.33 10/13/20 34 Gas Reg. Unleaded (10% Eth) 1.3366 0.1317 0.494 0.15 0.18 0.04 2.07 2.10 10/13/20 36 Gas Premium Unleaded (10% Eth) 1.6675 0.1317 0.494 0.15 0.18 0.04 2.40 2.43 10/13/20 53 Ultra Low Sulfur 1.3087 0.1404 0.494 0.15 0.18 0.04 2.05 2.08 FUELMAN ACCEPTED FUELING SITES Fuel pricing for Fuelman accepted locations is the posted retail price minus the Federal Tax, plus $0.04 per gallon. If purchase is paid by the 30th of that month, a $0.04 per gallon discount will be applied. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 4.J. For Meeting of: November 17, 2020 ITEM TITLE: Resolution authorizing an amendment to contract2020-018 with Connell Oil for the bulk purchase and delivery of fuels SUBMITTED BY: Maria Mayhue, Acting Procurement Manager Susan Knotts, Buyer II SUMMARY EXPLANATION: This amendment implements a city-wide, card based fueling program. Existing contract 2020-18, which includes Bid J11902 specifications, specifically allows for this additional service. This fueling program will be used primarily by Yakima Police Department, but will be available for use with all city -owned vehicles. This program will make available a wider range of fueling options and will save the city money when employees travel for trainings, etc. Pricing will be tied to an OP I S fuel index, which will provide consistent pricing methodology at fueling stations not owned by the City. Use of fuel cards eliminates payment of federal taxes, for which the City is exempt and would be assessed with any other form of payment. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Approve Resolution ATTACHMENTS: Description Upload Date [5 Resolution to Amend Contract 10/29/2020 10/29/2020 D Amendment No. 1 - Contract 2020-018 Type Resolution Contract