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HomeMy WebLinkAbout09-241 3 Resolution No. 09-241 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH PETROLIANCE, L.L.C. FOR OFFSITE FUELING SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall, City Manager, be and is hereby authorized and directed to execute an Agreement with Petroliance,L.L.C. for offsite fueling services on behalf of the City of Elgin,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: November 18, 2009 Adopted: November 18, 2009 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk CITY OF ELGIN AGREEMENT FOR UP Number: 09-058 Offsite Fueling for Citywide Vehicles This Agreement is made and entered into this "fay of eVd n& e--)2009,by and between the City of Elgin("the CITY"),a municipal corporation organized and existing under the laws of the State of Illinois, and Pr *�>rl a►.z t LL incorporated in the state of °—^-e_ and having a principal place of business at 1 001 Sc lnt e i. tZ N L ("the CONTRACTOR"). If `lJJz ARTICLE I. DEFINITION. "THIS CONTRACT" as used herein shall mean this Agreement,the Invitation for Proposals(IFB)- including all documents referenced therein and the Contractor's bid response (bid) thereto incorporated by reference herein and - made a part hereof The CONTRACTOR agrees to provide the goods and/or services all in accordance with the IFB and CONTRACTOR'S Bid. In the event there is a conflict between this Agreement and the bid documents,the bid documents shall supersede this Agreement. ARTICLE II. DURATION. The CONTRACTOR shall commence the performance of THIS CONTRACT upon receipt of a fully executed contract from the City of Elgin. It shall end on November 23, 2011 with a one year option to renew at the City's discretion. ARTICLE III. TERMINATION. The following shall constitute events of default under THIS CONTRACT: a) any material misrepresentation made by the CONTRACTOR to the CITY, b) any failure by the CONTRACTOR to perform any of its obligations under THIS CONTRACT including,but not limited to,the following: (i) failure to commence performance of THIS CONTRACT at the time specified in THIS CONTRACT due to a reason or circumstance within the CONTRACTOR'S reasonable control, (ii) failure to perform THIS CONTRACT with sufficient personnel and equipment or with sufficient material to ensure the completion of THIS CONTRACT within the specified time due to a reason or circumstance within the CONTRACTOR'S reasonable control, (iii) failure to perform THIS CONTRACT in a manner reasonably satisfactory to the CITY, (iv) failure to promptly re-perform within reasonable time the services that were rejected by the CITY as erroneous or unsatisfactory,(v) failure to comply with a material term of THIS CONTRACT, including,but not limited to the Affirmative Action requirements,and(vi) any other acts specifically and expressly stated in THIS CONTRACT as constituting a basis for termination for cause. The CITY may terminate THIS CONTRACT for its convenience upon fourteen(14)days prior written notice. ARTICLE IV. DAMAGES. From any sums due to the CONTRACTOR for goods or services,the CITY may keep for its own the whole or any, part of the amount for expenses, losses, and damages as directed by the Purchasing Director, incurred by the CITY as a consequence of procuring goods or services as a result of.any failure, omission, or mistake of the CONTRACTOR in providing goods or services as provided in THIS CONTRACT. ARTICLE V. GOVERNING LAWS AND ORDINANCES. This CONTRACT is made subject to all the laws of the State of Illinois and the ordinances of the CITY and if any such clause herein does not confonn to such laws or ordinances, such clause shall be void(the remainder of the contract shall not be affected)and the laws or ordinances shall be operative in lieu thereof. ARTICLE VI. AFFIRMATIVE ACTION. The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry,national origin,place of birth, age or physical handicap which would not interfere with the efficient performance of the job in question. The CONTRACTOR will take affirmative action to comply with the provisions of Elgin Municipal Code Section 3.12.100 and will require any subcontractor to submit to the CITY a written commitment to comply with those provisions. The CONTRACTOR will distribute copies of this commitment to all persons who participate in recruitment,screening,referral and selection of job applicants and prospective subcontractors. The CONTRACTOR agrees that the provisions of Chapter 3.12 of the Elgin Municipal Code, 1976, is hereby incorporated by reference, as if set out verbatim. ARTICLE VII. ASSIGNABILITY. The CONTRACTOR shall not assign, sell or transfer any interest in THIS CONTRACT without prior written consent of the CITY. ARTICLE VIII. AMENDMENTS. There shall be no modification of the CONTRACT,except in writing and executed with the same formalities of the original. ARTICLE IX. NOTICES.Any notice given under this CONTRACT shall be in writing and shall be deemed to have been given when hand delivered or deposited in the U.S. mail, certified or registered, return receipt requested, addressed, if to CONTRACTOR,at the address set forth above to the attention of the project manager or undersigned representative,and if to T the City, to the attention of the City Manager; 150 Dexter Court, Elgin, IL 60120 or to such other address and/or authorized representatives as either party shall designate in writing to the other in the.manner herein provided. ARTICLE X. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to and shall indemnify, defend and hold harmless the City, its officers,employees,boards and commissions from and against any and all claims,suits, judgments, costs, attorney's fees,damages or any and all other relief or liability arising out of or resulting from or through or alleged to arise out of any acts or negligent acts or omissions of Contractor or Contractor's officers, employees, agents or subcontractors in the performance of this agreement, including but not limited to, all goods delivered or services or work performed hereunder. In the event of any action against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify,,defend and hold harmless, such action shall be defended by legal counsel of the City's choosing. ARTICLE XI. PUBLICITY. The CONTRACTOR may not use, in any form or medium,the name of the City of EIgin for public advertising unless prior written permission is granted by the CITY. ARTICLE MI. APPROPRIATIONS. The fiscal year of the CITY is the 12 month period ending December 31. The obligations of the CITY under any contract for any fiscal year are subject to and contingent upon the appropriation of funds sufficient to discharge the obligations which accrue in that fiscal year and authorization to spend such funds for the purposes of the contract. If, for any fiscal year during the term of the CONTRACT, sufficient funds for the discharge of the CITY'S obligations under the contract are not appropriated and authorized,then the CONTRACT shall terminate as of the last day of the preceding Fiscal year, or when such appropriated and authorized funds are exhausted, whichever is later, without liability to the CITY for damages,penalties or other charges on account of such termination. ARTICLE XIJI. ENTIRE AGREEMENT. This CONTRACT embodies the whole agreement of the parties. There shall be no promises, teams, conditions or obligations other than those contained therein; and this agreement shall supersede all previous communications,representations,or agreements,either verbal or written,between the parties. ARTICLE X n. COMPLIANCE WITH LAWS. Notwithstanding any other provision of this CONTRACT it is expressly agreed and understood that in connection with the performance of this CONTRACT that the CONTRACTOR shall comply with all applicable Federal, State,City and other requirements of law,including,but not limited to,any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, CONTRACTOR hereby certifies,represents and warrants to the CITY that all CONTRACTOR'S employees and/or agents who will be providing products and/or services with respect to this CONTRACT shall be legal residents of the United States. CONTRACTOR shall also at its expense secure all permits and licenses,pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this CONTRACT. The CITY shall have the right to audit any records in the possession or control of the CONTRACTOR to determine CONTRACTOR'S compliance with the provisions of this section. In the event the CITY proceeds with such an audit the CONTRACTOR shall make available to the CITY the CONTRACT'OR'S relevant records at no cost to the CITY. The person signing THIS CONTRACT certifies that s/he has been authorized by the CONTRACTOR to commit the CONTRACTOR contractual and has been authorized to execute THIS CONTRACT on its behalf. IN WITNESS WHEREOF the parties have hereto set their hands the day and year first above written. CONTRACTOR CITY OF ELGIN . Name Se®RSteg�all City Manager si mss V k. Title FEIN • Agenda Item No. City of Elgin October 29, 2009 TO: Mayor and Members of the City Council n:ar ally Stable �ifj �vveriunerri FROM: Sean R. Stegall, City Manager �(,�y1 Q• David L. Lawry, General Servi s Group Direct SUBJECT: RFP 09-058, Offsite Fueling Services PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for offsite fueling services to Petroliance LLC. RECOMMENDATION It is recommended that the City Council approve a two year purchase agreement,with the option to renew for an additional year, with Petroliance LLC in the amount of$775,000 for the initial 12 month period ending November, 2010. BACKGROUND Since the Environmental Protection Agency (EPA) rules and regulations for fueling facilities took effect 11 years ago, the City has utilized offsite fueling for its fleet of approximately 460 vehicles. The current contract expires at the end of November 2009. A Request for Proposal (RFP)was issued in October to select a vendor for a new,two year contract. For the purpose of this RFP, wholesale fuel prices were established based on the low side of the Oil Price Information Service (OPIS) refinery price schedule. This is the price per gallon that fuel distributors pay for a gallon of product. The proposing firms were then asked to establish the markup per gallon that they will charge for each type of fuel. This is added to the wholesale price to determine the total cost per gallon to be charged to the City for the fuel. RFPs were sent to three vendors, placed on the internet, and an advertisement was placed in the Courier News on September 21, 2009. One timely bid was received and opened at a public opening on October 5, 2009 from Petroliance LLC/Oil Company, the current fuel provider. Their proposed per gallon mark up (on the OPIS schedule) for this contract period is $0.26 (all products) at two of the three automated locations: 739 N. State Street, and 1775 N. LaFox, South Elgin. The third automated location at 601 S. Villa Street has a proposed per gallon mark up (on the OPIS schedule) for this contract period of$0.33 on all products per the attached written letter ti RFP 09-058 Offsite Fueling Services October 29,2009 Page 2 to the addendum. Considering the highly volatile fuel market in today's economy, this compares favorably to the last contract period where the markup was $0.25. Additional costs will be incurred due to the required taxes for Illinois Motor Fuel Tax (MFT), Illinois Underground Storage Tank (UST) and the Illinois Environmental Impact Fee (EIF). MFT charges are $0.19/gallon for gasoline and $0.215/gallon for diesel fuel. UST charges are $.003/gallon for gasoline and diesel while EIF is .008 for gasoline and diesel In addition to the pricing structure, the RFP requires the vendors to meet basic criteria needed for the offsite vending approach to work logistically for the City. A summary of those criteria is as follows: • The ability to provide 24 hour, 7 day a week fueling • The ability to dispense the quantity of fuel the City uses, at multiple locations and from a minimum number of pumps • The ability to dispense fuel in the event of a power failure • The ability to meet reporting, billing and security requirements • The ability to fuel a vehicle in the field, when needed • The ability to dispense types of fuels mandated by the EPA and environmentally friendly fuels such as Bio-Diesel, E-85 and Ultra Low Sulfur Diesel fuels Petroliance LLC was once again able to meet all of the above mentioned criteria. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT It is estimated that fuel costs over the twelve month period ending November, 2010 will total $775,000. The expenditure for fuel in 2007 and 2008 was $983,612 and $1,240,537 respectively. Based upon year to date usage, costs fluctuations and estimates for the remainder of 2009, costs for 2009 are estimated to be $760,000. Sufficient funds are budgeted ($763,500) and available ($226,480) in the Equipment Replacement Fund in account number 601-4701- 796.17-15 to pay fuel costs through the remainder of the year. The proposed 2010 budget includes $1,050,000 for vehicle fuel expenses. LEGAL IMPACT None 1 RFP 09-058 Offsite Fueling Services October 29,2009 Page 3 ALTERNATIVES 1. The City Council may choose to approve the offsite fueling proposal from Petroliance LLC as recommended. 2. The City Council may choose not to approve the contract with Petroliance LLC. and direct staff to pursue other options. Respectfully submitted for Council consideration. TP:cf Attachment t October 28,2009 Mr.Dan Rich Utility Superintendent City of Elgin 150 Dexter Ct. Elgin,IL. 60120 Sent via fax 847-931-5983 and email(rich d @cityofelgin.org) Re: Addendum to RFP-09-058 Offsite Fueling for Citywide Vehicles Dear Dan: Thank you for your previous years' business. We are proud to be a long-time Elgin business supporting this community. Per our discussion,we will be able to add the following site to our network to provide the City with fuel. Site Name: Villa Street Mobil,601 S. Villa,Elgin,IL. #Diesel pumps: 2,4 hoses (straight diesel,no biodiesel) #Gas pumps: 4,hoses(no e85 gas) Hours: 24 hours Proposed per gallon differential to OPIS Base,low: +$.33 (all products,this site only) Please contact me if you need anything else. I look forward to the continued relationship under the new agreement effective November 23,2009. Thank you. Sincerely, Mike Havenga Regional Sales Manager