HomeMy WebLinkAboutR-2013-126 Authorized the Purchase of Gasoline & Diesel Fuel not to Exceed $138,800.00for FY 2013-14 From Port Consolidated RFP No. 09-A-149 RESOLUTION NO. 2013-126
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO PURCHASE
GASOLINE AND DIESEL FUEL IN AN AMOUNT NOT TO EXCEED
$138,800.00 THROUGH FISCAL YEAR 2013-2014 FROM PORT
CONSOLIDATED UNDER THE SOUTHEAST FLORIDA GOVERNMENTAL
CO-OP BID RFP NO. 09-A-149; PROVIDING FOR CONFLICTS; FURTHER,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4,
Subsection 0), authorizes the City Manager to purchase supplies, services, equipment and
materials for the City government in amounts in excess of the established monetary threshold
without competitive bidding and without advertisement for bids if he is authorized to do so in
advance by a resolution adopted by the City Commission, and if such purchases are made
pursuant to a competitive bid obtained within the last eighteen (18) months by other government
agencies such as the federal government state of Florida or a Florida municipality or county; and
WHEREAS, the Dania Beach Code of Ordinances, Chapter 2, Article 1, Section 2-10,
"Monetary thresholds for certain purchases and payment disbursement authorizations",
Subsection(a), sets the monetary threshold or limitation at$25,000.00; and
WHEREAS, the Director of the Public Services Department has determined that it is
necessary and prudent to purchase gasoline and diesel fuel for the City's vehicle and equipment
fleet using the Southeast Florida Governmental Co-Op Bid Agreement pricing during the course
of the fiscal year beginning October 1, 2013;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH,FLORIDA:
Section 1. That the Administration is authorized to purchase an amount not to exceed
an amount of$138,800.00 from Port Consolidated under the Southeast Florida Governmental Co-
Op Bid RFP 09-A-149, for gasoline and diesel fuel for the City's vehicle and equipment fleet.
Section 2. That proper City Officials are authorized to execute the contract; provided,
however, that no contract will become effective unless and until City Officials complete their
execution of it.
Section 3. That this purchase of City fuel was planned in various City operating funds
within Account Number 52-10, to expense an amount not to exceed $138,800.00 from the
General Fund, Special Revenue Funds and Enterprise Funds as currently appropriated in the
approved 2013-14 City Budget.
Section 4. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 5. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED and ADOPTED on October 22, 2013.
ATTEST:
LOUISE STILSON, CMC WALT . DUKE, III
CITY CLERK MAYOR
Is
APPROVED AS TO D CORRECTNESS: �o
4
THO S J. ASBRO
CITY ATTOkNEY
2 RESOLUTION#2013-126
Meeting:January 17,2012
City of Coral Springs Department:Financial Services
City Commission Meeting Agenda Item Initiated By:Angelo Salomone
Summary Sheet
DOC ID:2754
SUBJECT: Unleaded Gasoline & Diesel Fuel
PRIORITY: Consent—Financial Health & Economic Development
REQUESTED ACTION: Request to renew the contract for Unleaded Gasoline and Diesel
(INCLUDE CONTRACT Fuel through the Southeast Florida Governmental Purchasing
START/TERM DATES) Cooperative Group, RFP#09-A-149 to Port Consolidated, Inc. of
Ft. Lauderdale, Florida, beginning April 1, 2012 and terminating
on March 31, 2014 with one additional two year renewal possible.
The estimated annual expenditure for the City of Coral Springs
under this contract is approximately $1,298,427.00 for diesel fuel
and unleaded gasoline. (REQUEST TO RENEW)
PROJECT REVIEWED BY
OR INCLUDED IN:
ATTACHMENTS: #1 — First Amendment to Memorandum of Understanding
BACKGROUND/ DESCRIPTION:
BACKGROUND:
1. Using Department(s): City-Wide
2. Justification for Award Recommendation:
Most responsive and responsible Bidder
X Highest ranked Proposer
Other
3. Is this item in the adopted budget? X Yes No
4. Is this item in the CIP? Yes X No
5. Agreement Info: X Contract executed by Firm
N/A
6. Insurance: X Approved
N/A
7. Additional information:
The City of Coral Springs, acting as lead agency for the purchase of Diesel Fuel and
Unleaded Gasoline for the Southeast Florida Governmental Purchasing Cooperative
i
City of Coral Springs
Commission Meeting Agenda Item
Summary Sheet
Meeting: January 17, 2012
Subject: Unleaded Gasoline& Diesel Fuel
Group has solicited proposals for this necessary commodity, combining the estimated
usage of the 28 agencies that chose to participate in this procurement. It is estimated that the value of this contract in total will exceed 68 million dollars judged by
today's prices.
This fuel contract has improved our fuel procurement in the following manners:
1. It establishes a business partnership with a fuel distributor (or "jobber") that will
maintain a "back-to-back" agreement with a fuel wholesaler, or owner of fuel
products at the port, specifically for the contract to be established with the Co-Op
Group. During past attempts, it has not proven possible to have a direct
contractual relationship with a wholesaler. An allocation of fuel specifically
purchased under contract by the Jobber for the Cooperative Group provides a
more secure supply chain for our fuel needs than any other method available.
2. We now do business with a fuel distributor who has demonstrable capabilities to
appropriately administrate a contract with 28 different using agencies, deliver fuel
quickly, safely and responsibly, and provide fast and accurate electronic billing.
3. Ensure a wide variety of capabilities both in fuel supply sources and available
equipment for the steady provision of fuel during declared emergency situations.
Capabilities such as significant delivery fleet size, distributor owned fuel farms in
the tri-county area, and access to alternative fuel wholesalers both at Port
Everglades and other ports throughout Florida, are now in place.
4. Obtain the required fuels at competitive market rates.
A Request for Proposals process was used for this procurement, in which proposers
would be evaluated in all the above mentioned areas using the criteria established in the
Request for Proposals.
In order to achieve the necessary improvements in the Co-Op fuel procurement process,
the following changes were made to the original Request for Proposals that was issued
in 2009:
1. The oil price index used as a cost comparison method during the procurement
process and to obtain pricing during the contract period, was changed to the Platts
Fuel Index, which is regional in nature and is also the index by which the majority of
fuel distributors purchase the fuel directly from the wholesalers. The price is set to
float on a daily basis, again to mirror the marketplace.
2. Payment is made to the Jobber via a wire transfer of funds, in order to eliminate the
"float" which occurs when government takes 30-45 days to pay for the fuel that is
delivered. Jobbers are required to pay the wholesaler within ten days of their receipt
of the product, and their cost of waiting for our payment for approximately 20 to 30
days requires many of these firms to establish a line of credit to finance this cash
flow issue. The cost of that financing is, of course, passed on to the Participating
Agencies via higher fuel cost. Once again, we have "mirrored"the marketplace.
3. Provide proof that a supply contract with a wholesaler or multiple wholesalers would
be established specifically for the purchases of the Cooperative Group. Past
Page 2
City of Coral Springs
Commission Meeting Agenda Item
Summary Sheet
Meeting: January 17, 2012
Subject: Unleaded Gasoline & Diesel Fuel
procurements did not have this requirement, which had the effect of driving our
ultimate suppliers to the fuel spot market, which tends to dry up before and after
emergency situations.
By taking these actions, the Cooperative attempted to position itself effectively in the fuel
marketplace. As a result of these changes to the Request for Proposals, Port
Consolidated, Inc. was awarded the contract on November 17, 2009.
The award was recommended by the Evaluation committee for the following Reasons:
1. Port Consolidated currently has supply agreements with several major oil
companies, notably Chevron, Marathon, Valero, TransMontaigne, Colonial, Hess and
Motiva. In addition, Port Consolidated has committed to establishing a separate
supply contract with one or more of these wholesalers specifically for the fuel needs
of the Cooperative Group. As has been stated previously, this "back-to-back"
contractual arrangement establishes a specific allocation for the Cooperative Group
from a fuel supplier. Previously, a good portion of the fuel supplied to the Co-Op was
bought on the spot fuel market, which resulted in supply issues when demand for
fuel was high, such as before and after emergencies.
2. Port Consolidated owns and operates a fleet of over 50 tank wagons and over 50
transport vehicles (the large vehicles that carry approximately 8,000 gallons of fuel)
which provides the Cooperative Group with the most comprehensive in-house fuel
delivery capability in the area. Not only does this benefit our daily operations, but a
large, company owned fleet would be more likely used to service regular customers
in an emergency situation, as which the Cooperative Group surely would qualify.
3. Port Consolidated owns and operates over ten (10) different petroleum storage
facilities throughout the state, with a total storage capacity of just under 3,000,000
gallons for various petroleum products.
4. In addition to the fuel storage capabilities, Port Consolidated has six (6) automated
card lock fueling locations in the tri-county area, which can be used by cooperative
members to purchase fuel directly at pumps which are not open to the public, only to
Port Consolidated customers.
5. Port Consolidated locally owns 105 mobile inter-modal fuel containers, know as "ISO
tanks" with a 6,000 gallon fuel capacity. These mobile tanks can be provided to Co-
Op members and regularly refilled to provide additional fuel capability during
hurricane season or for periods of time when fuel tanks may be taken out of use for
repair or replacement.
6. Through the RFP process, Port Consolidated has provided a pre-purchase option for
fuel to any Cooperative Agency interested in establishing owned fuel in the local
area, to be bought at a set price. This could prove to be extremely useful to any local
agency whose regular fuel needs are not being met with agency owned fuel storage
capabilities. Some Co-Op members have availed themselves of this option.
7. The cost of fuel from Port Consolidated during the original RFP process was within a
cost differential of Y2 of 1%, which is minimal when compared to other proposers.
For example, the City of Coral Springs purchases approximately 368,000 gallons of
all types of fuel during the year. The cost differential to the City from the Port
Page 3
City of Coral Springs
Commission Meeting Agenda Item
Summary Sheet
Meeting: January 17, 2012
Subject: Unleaded Gasoline& Diesel Fuel
Consolidated best and final offer and the lowest cost for both diesel and gasoline
provided by the other two finalists, is a difference of approximately $5,600 per year.
Factoring in the additional capabilities of Port Consolidated to meet the fuel needs of
the Cooperative on a regular and emergency basis, the small cost differential is
believed to be a reasonable investment of public funds.
8. Port Consolidated has proven, during the initial term of the contract to be a valuable
partner to the Co-Op. During hurricane warnings and when shifts in the cost of fuel
was imminent, Port Consolidated communicated with us to provide market
information. Examples of this are the ending of the Ethanol credit by the Federal
Government and supply situations during storms affecting the Gulf Coast. No other
supplier has provided this type of partnering to the Co-Op during it's history, which
stretches back over 20 years.
9. Port Consolidated revised the required payment terms from ten days via wire transfer
(which was stipulated in the Request for Proposals), to fifteen days via wire transfer.
Based on approval of this Evaluation Committee recommendation, the contract with Port
Consolidated would begin on April 1, 2012. Port Consolidated has executed an
amendment to the original Memorandum of Understanding which is attached to this
agenda report to outline the requirements of their firm under this contract, along with the
operating and payment requirements of the Co-Op Participating Agencies.
COPIES TO: T. Planco, Central Stores Coordinator
B. Mallozzi, Fleet Services Superintendent
S. Whitacre, Municipal Prosecutor
M. Heller, Financial Services Director
J. Hearn, City Attorney
Page 4
FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING
BETWEEN SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING
COOPERATIVE AND PORT CONSOLIDATED,INC.
This First Amendment to Memorandum of Understanding (the "First Amendment") is
entered into this day of &I nzel 2012, by and between Southeast Florida
Governmental Purchasing Cooperative and Port Consolidated,Inc.
RECITALS
WHEREAS, the parties entered into a Memorandum of Understanding dated November
13 2 the 0f19 MOU" related to theprovision( ) of unleaded 1•gasoline and diesel fuel;e , and
WHEREAS, under Section 5 of the MOU, the initial contract term is January 1, 2010
through March 31,2012 with two(2)additional two(2)year renewals available; and
WHEREAS, the parties mutually desire to renew the MOU for an additional (2) year
period,which shall extend the contract term to March 31,2014.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained
herein,the parties agree as follows:
1. The term of the MOU between the parties shall be extended to March 31,2014.
2. All terms, provisions and conditions of the MOU not inconsistent with this First
Amendment shall remain in full force and effect.
3. Should any part,term or provision of this Second Amendment be by the courts decided to
be illegal or in conflict with any law of the State,the validity of the remaining portions or
provisions shall not be affected thereby,
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FIRST AMENDMENT TO NIEMORANDUM OF UNDERSTANDING
BETWEEN SOUTHEAST FLORIDA GOVERNMENTAL PURCE ASPiG
COOPERATIVE AND PORT CONSOLIDATED,INC.
This First Amendment to Memorandum of Understanding (the "First Amendment") is
entered into this day of� . 2012, by and between Southeast Florida
Governmental Purchasing Cooperative and Port Consolidated,Inc.
RECITALS
WHEREAS, the parties entered into a Memorandum of Understanding dated November
13,2009(the"MOU")related to the provision of unleaded gasoline and diesel fuel; and
WHEREAS, under Section 5 of the MOU, the initial contract term is January 1, 2010
through March 31,2012 with two(2)additional two(2)year renewals available;and
WHEREAS, the parties mutually desire to renew the MOU for an additional (2) year
period,which shall extend the contract term to March.31,2014.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained
herein,the parties agree as follows:
1. The term of the MOU between the parties shall be extended to March 31,2014.
2. All terms, provisions and conditions of the MOU not inconsistent with this First
Amendment shall remain in fall force and effect.
3. Should any part,term or provision of this Second Amendment be by the courts decided to
be illegal or in conflict with any law of the State,the validity of the remaining portions or
provisions shall not be affected thereby.
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