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Home My WebLink About11/17/2020 04J Bulk Purchase & Delivery of Fuels; Contract Amendment with Connell Oil 't..an,gtntj ka d E$A dot 1 aY BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.J. For Meeting of: November 17, 2020 ITEM TITLE: Resolution authorizing an amendment to contract 2u020-018 with Connell Oil for the bulk purchase and delivery of fuels SUBMITTED BY: Maria Mayhue,Acting Procurement Manager Susan Knotts, Buyer I I 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 mon when employees travel for trainings, etc. Pricing will be tied to an OPIS fuel i ey ndex, 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: Yes STRATEGIC PRIORITY: Public Safety APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Approve Resolution ATTACHMENTS: Description Upload Date Type C esolution to Amend( retract 10/ 9/20 0 Res lotion L Amendment Rla 1 - retract 2020-01 10/29/2020 retract 2 RESOLUTION NO. R-2020- 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 17'h day of November, 2020. Patricia Byers, Mayor ATTEST: Sonya Clear Tee, City Clerk o CITY DFYAKUNA CONTRACT 2U2U~U18 AMENDMENT No. 1 BID J1f903Bulk 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, aVVashin0ton municipal corporation ("City"), and Connell Oil Inc,, d1b8Co-EMer�qy. ("Contractor"). WHEREAS,the Contractor entered into a Contract with the City on February 3, 2020, (the Contract); and, WHEREAS, the City desires ha amend the Contract{oadd Ontnao1Or'ospecificCFN/Fue|manfue|xardn; and, WHEREAS,the Contract provides that either paq may request an amendment in writing; and, WHEREAS, theCnntroctaJxnpmvide8thatatanyhmedUringitsterm. 00micesmaybeeKpandedtoinc|udo other items normally offered by the Contractor, N[}VV. THEREFORE, in consideration of the above representations and the t8rma, conditions, covenants, and Agreements set forth below, the parties hereto agree asfollows: Section and 2mf the Contract,the Scope and Compensation of Bid J113U2 Bulk Purchase and Delivery AfFuels "As Needed" CUoog| Exhaust Ruid(DEF)am |nxidento|s, shall be modified to read as follows: ' 1. Statement ofWork The Contractor shall perform all work and s8mi and furnish all �o9. nna1e�a|s, labor and eq� � pm� (collectivelyedto8s"SerVices'' the ' procedure outlined in Bid J11SO2 Bulk Purchased and Delivery 0f 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 nf which are incorporated heroin by this reference, and shall pednrm any alterations |nor additions hr the work provided under this Contract and every part thereof. In addition, Contractor shall provide Co-Energy CFN/Fudmun fuel cards which will enable City of Yakima vehicles tobe fueled-up at any CNF cardlock fueling site at discounted rates or any Fuelman accepted retail station minus federal tax attached hereto aoExhibit C and incorporated herein by this reference, The Contractor shall provide and bear the expense O(all equipment; work and labor Uf any sort whatsoever that may be required for the transfer¢f materials and completing the services provided in this Contract and every pahthereof, 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 @t the time and iO the manner and upon the conditions provided for the Contract. The City to pay the Contractor according to Exhibit C, attached hereto and incorporated herein, which Exhibit includes �uUen�h�spaci/i�� onsand payment schedule with hemiz mar kup fueling -`� Except as modified herein,the original Contract shall remain ineffect, 4 In WITNESS WHEREOF, the parties hereto have executed Amendment No, 1 to the Contract as of the date and year first written above, CITY OF YAKIMA CONNELL OIL, INC. By: fr Robert Harrison, City Manager - Date: Date: 0 Z 2 0 SoND Attest: (Print name) City Clerk 5 CITY OF YAKIMA CONTRACT 2020-018 AMENDMENT No. 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 OM 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 Product CPIS Transportation State Term: Term: Prompt COST: .COST: Purchase , Rack Shipping Tax Net 15 Net 30 Payment Net 16- Net 30 Pricing _ charge - Days Days- Discount Days Days 10/13/20 04 Unleaded 1.5625 0.1317 0,494 0 15 0.18 0.04 2.30 2 33 Regular (Non-Eth) 10/13/20 34 Gas Reg. 1 3366 0.1317 0,494 0.15 0.18 0.04 I 2 07 2,10 Unleaded (10%Eth) 10/13/20 36 Gas 1,6675 0.1317 0,494 0.15 0 18 0.04 2.40 2.43 Premium Unleaded (10%Eth) 10/13/20 53 Ultra Low 1.3087 0.1404 0.494 0,15 0,18 0,04 2 05 2 08 Sulfur 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.