Meeting Date: 12/01/11

Agenda Item: NB-2 a Meeting Date: 12/01/11 AGENDA MEMORANDUM TO: FROM: City Commission Robert DiSpirito, City Manager~ DATE: November 16,2011 SUBJECT: PRESENTER: RECOMMENDATION: BUDGET IMPACT: NEXT ACTION: Pinellas County Coop Bid #078-0533-B for Gasoline and Diesel Fuel. Doug Hutchens, Director of Public Works & Utilities Motion to award a contract to J. H. Williams Oil Company, Inc. of Tampa, Fl. in the amount of $749,282 to purchase gasoline and diesel fuels. The awarded amounts are based on budgeted figures in the Fleet Services Fund, and in several user Division's operational accounts. However, actual amounts may vary with fluctuations in the Oil Price Infmmation Services (OPIS) Index based on cost of the fuels. None ATTACHMENTS: 1) Memo from Chuck Ankney, Purchasing Agent, dated November 16, 2011. 2) Memo from Randy Moore, Fleet Services Division Director dated November 14, 2011. 3) Pinellas County Renewal Memo approved September 8, 2011. PAST ACTION: BACKGROUND: The City Commission awarded a coutract based on the Coop bid for the initial award and the prior two renewals. The Pinellas County Purchasing Department facilitated a cooperative bid in 2008 for gasoline and diesel fuel. The City of Dunedin pmticipated in this cooperative bid along with several other entities. The bid was for a twelve-month (12) period with an option to renew for up to four (4) additional twelve-month (12) periods. The pricing on the contract is based on the Oil Price Infom1ation Services (OPIS) average weekly price for the specific fuel plus a per gallon delivery charge that is either added or subtracted to/from the fuel cost. The delivery charge is the item that was actually bid. The fuel cost can vmy depending on the OPIS average. However, the delivery charge

is fixed for three (3) month intervals. It may be adjusted every tlu ee (3) months for the life of the contract. The Pinellas County Board of County Commissioners (BOCC) awarded contracts to various suppliers. The City of Dunedin uses tlu ee types of fuel on this contract; 87 octane unleaded gasoline (item #1), Ultra Low Sulfur Diesel Fuel #2 (15PPM, on road use, item #2) and Ultra Low Sulfur Diesel Fuel #2 (Off-Road, Red Dyed, item #3). The County awarded the contract for all three items to J.H. Williams Oil Co., Inc. of Tampa, Fl. The Pinellas County BOCC recently approved the renewal of this contract for the third one-year period. Funds for 87 octane unleaded gasoline (item #I) and on-road diesel fuel (item #2) were budgeted in the Fleet Services Fund (Acct # 550-6200-519-5211/5212). The budget for these two items is $714,282. Funds for item #3 were budgeted in each user division's operational accounts. The largest consumers are the Wastewater and Water Facilities. The estimated value of the Ultra Low Sulfur Diesel Fuel #2 (Off-Road, Reel Dyed, item #3) is $35,000.00 based on fiscal year 20 II usage. Staff requests that the City Commission approve the renewal of the contract with J.H. Williams Oil Company, Inc. for a one-year period in the amount of$749,282 ($198,674 + $515,608 + $35,000). The City of Dunedin will only pay for actual quantities used. I concur with this request.

l Department of Finance Interoffice Memorandum TO: THROUGH: FROM: RobeJi DiSpiiito, City Manager Jeffi ey Yates,~ance Director Chuck Ankney, Purchasing Agent {fj- DATE: November 16, 2011 SUBJECT: Renewal of contract for the purchase of fuel The Pinellas County Pmchasing Department facilitated a cooperative bid in 2008 for gasoline and diesel fuel The City of Dunedin participated in this cooperative bid along with several other entities. Our goal was to increase the volume on this bid so that the City could obtain better plicing. The bid was for a twelve-month (I 2) peliod with an option to renew for up to four ( 4) additional twelve-month (12) peliods. The plicing on the contract is based on the Oil Plice Information Services (OPIS) average weekly price for the specific fuel plus a per gallon delivery charge that is either added or subtracted to/from the fuel cost. The delivery charge is the item that was actually bid. The fuel cost can vary depending on the OPIS average. However, the delivety charge is fixed for three (3) month intervals. It may be adjusted evety three (3) months for the life of the contract. The fee adjustment is based on the CPI Index Gasoline (all types), All Urban Consumers, Not Seasonally Adjusted, U.S. City Average, Transpmiation, Base Pmiod: 1982-84=100. The Pinellas County Board of County Commissioners (BOCC) awarded contracts to various suppliers. The City of Dunedin uses three types of fuel on this contract; 87 octane unleaded gasoline (item #1), Ultra Low Sulfur Diesel Fuel #2 (15PPM, on road use, item #2) and Ultra Low Sulfur Diesel Fuel #2 (Off-Road, Red Dyed, item #3). The County awarded the contract for all three items to J.H. Williams Oil Co., Inc. of Tampa, Fl. The Pinellas County BOCC recently approved the renewal of this contract for the third one-year period. Funds for 87 octane unleaded gasoline (item #I) and on-road diesel fuel (item #2) were budgeted in the Fleet Services Fund (Acct # 550-6200-519-521115212). The budget for these two items is $714,282. Funds for item #3 were budgeted in each user division's operational accounts. The largest consumers are the Wastewater and Water Facilities. The estimated value of the Ultra Low Sulfur Diesel Fuel #2 (Off-Road, Reel Dyed, item #3) is $35,000.00 based on fiscal year 2011 usage. I am requesting that City Cmmnission approve the renewal of the contract with J.H. Williams Oil Company, Inc. for a one-year period in the amount of$749,282 ($198,674 + $515,608 + $35,000). The City of Dunedin will only pay for actual quantities used. I request that this item be aclclecl to the agenda for the City Commission meeting scheduled for Thursday, December I, 2011. Please let me know if you need additional infonnation.

MEMORANDUM TO: THRU: Rob DiSpirito, City Manager Doug Hutchens, Director of Public Works & Utilities~- FROM: Randy Moore, Division Director of Fleet Services ~ 1 DATE: November 14,2011 SUBJECT: Fuel Purchasing The Pinellas County Purchasing Department facilitates a cooperative bid for gasoline and diesel fuel. The City of Dunedin participated in this cooperative bid along with numerous other entities. The bid is for a twelve-month (12) period with an option to renew for up to four (4) additional twelve-month (12) periods. Fleet Services manages and maintains the sole fueling site for all city vehicles and equipment with the exception of the permanent emergency generators. Budget projections for 2012 were based on a four year average of fuel quantities dispensed from our site. Our anticipated fuel usage for 2012 is 56,764 gallons of E10 unleaded gasoline and 128,902 gallons of ultra-low sulfur diesel fuel. There has been some discussion in the City about whether this is the most economical way to purchase these fuels. Chuck Ankney and I have looked at other options including futures and this does appear to be as economical a way to purchase these fuels as any other method in the marketplace. Other entities do purchase fuel differently, but their raw fuel costs are no better than ours. I request that we continue to participate in the Pinellas County cooperative fuel bid and that this item be added to the Agenda for the City Commission meeting scheduled for December 1 ", 2011. Please let me know if you need additional information.

Joe Lauro, CPPO/CPPB Director To: From: Subject: Date: INTEROFFICE MEMO Roberi S. LaSala, County Administratof\ _ J Joseph Lauro, Director of Purchasing ;yr;-e. ~ O,JJ..Jl~ Third Term Extension- Fuel: Gasolit)l' ~nd Diesel (COOP) Contract No. 078-0533-B(CR) lj September 6, 2011 RECOMMENDATION: I RECOMMEND THE COUNTY ADMINISTRATOR APPROVE THE THIRD TERM EXTENSION PERTAINING TO THE COOPERATIVE CONTRACT FOR GASOLINE AND DIESEL FUEL WITH: 1. B.V. OIL COMPANY, INC., DORAL, FLORIDA 2. J.H. WILLIAMS OIL COMPANY, INC., TAMPA, FLORIDA 3. PORT CONSOLIDATED, INC., FORT LAUDERDALE, FLORIDA AT THE SAME TERMS AND CONDITIONS. PINELLAS COUNTY ESTIMATED ANNUAL EXPENDITURE NOT TO EXCEED: COOPERATIVE ESTIMATED ANNUAL EXPENDITURE NOT TO EXCEED: TOTAL ESTIMATED ANNUAL EXPENDITURE NOT TO EXCEED: $ 7,043,063.00 $ 3,519,320.00 $10,562,383.00 Funding for Pinellas County is provided through Fleet Management's Operating Fund. Cooperative members are responsible for their own funding and purchases. DISCUSSION: This request is for the third twelve (12) month contract extension for Gasoline and Diesel Fuel. The County Administrator approved the second term extension on September 14, 201 0 preceded by the County Administrator approval of the first term extension on July 29, 2009. The contract was originally awarded by the Board of County Commissioners on November 18, 2008. This is a cooperative contract administered by Pinellas County and active Cooperative participants are: 1. City of Dunedin 2. City of Gulfp011 3. City of Largo 4. City of Madeira Beach 5. City of Oldsmar 6. City of Pinellas Park 7. City of St. Petersburg 8. Palm Harbor Fire Rescue 9. St. Petersburg College The estimated expenditures for Pinellas County reflect an increase above previous expenditure levels of $3,654,910. This increase represents the unification of fuel purchases and disbursement functions between the County and the Sheriff. The present vendors' services have been satisfactory. Therefore, it is recommended that the third extension be exercised.

Joe Lauro, CPPO/CPPB Director Section 2-176 of the County Code authorizes the Director of Purchasing to approve all contract extensions under $100,000 and the County Administrator to approve contract extensions for any annual amount for awards previously made by the Board of County Commissioners. Contract Period: 12-16-11 THROUGH 12-15-12 0 N/A- One Time Purchase Term Extension: Terms Remaining 1 Length of Each Term 12- Months 0 None Increase Allowances: Fixed Fee Per Gallon: This is the fixed amount to be added to or subtracted from the average base price, as defined below in Average Base Price, of each gallon of fuel delivered to Entities. The fixed fee will includes any delivery cost from the contractor's terminal to the delivery location plus any other administrative or handling charges, profit. etc. This fixed fee shall be adjustable (decrease or increase) at three (3) months intervals after the date of the award and at three (3) month intervals thereafter for the life of the contract based on CPI Index, All Urban Consumers, Not Seasonally Adjusted, U.S. City Average, Transportation, Base Period: 1982-84=100. Average Base Price: All fuel prices are based on Port of Tampa Florida average terminal rack prices published daily in Oil Price Information Service, United Publications (OPIS) the day the order is placed. The base cost will be validated by daily OPJS price sheets provided by the supplier via e-mail or fax to designated Entity personnel. APPROVED ( MnJctb \!JWDW ( ROBERT ASALA County Administrator Date of Approval: 9.._\\-'.~"+\. '-'''---