COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Transportation and Maintenance Superintendent
SUBJECT:Title
Cooperative Purchase Agreement and Cooperative Purchase of Above Ground Fuel Storage and Dispensing Components with Management System from Blue 1 Energy Equipment (Bill Young)
Body
FUNDING SOURCE:
Capital Improvement Plan - American Rescue Plan Act (ARPA) Funds
PURPOSE:
To consider a Cooperative Purchase Agreement (500578) for an above ground fuel storage and dispensing components with management system, utilizing Sourcewell’s Cooperative Purchase Contract 092920-TAN with Blue 1 Energy Equipment, in accordance with City Code §§ 3.10.010.2(A)(1) and 3.10.030.1.
BACKGROUND:
The ability to buy fuel in bulk quantities decreases the cost of the fuel throughout the year and the fuel management system will enable staff to track mileage and usage per vehicle. In addition, the fuel site will be equipped with generators, allowing for the continued fueling of police, fire, public works and other City vehicles (and facilities) needed to operate in an emergency, such as a multi-day power failure that would leave other fuel sites in Lake Havasu City in operable.
To minimize the cost of construction, the Public Works Maintenance Services Division will provide the foundational work (asphalt, concrete, and running electrical and IT cables) for the preparation of the equipment installation. The total cost quote for all equipment and software required for the fuel facility, including installation and tax, is $955,978.56.
COMMUNITY IMPACT:
Installing and maintaining an on-site fuel facility benefits the City and our residents by reducing fuel costs, increasing operational efficiencies, improving the City’s proactive maintenance measures, and, most importantly, enhancing the safety and security of our community and our residents in an emergency.
FISCAL IMPACT:
ARPA funds in the amount of $980,978.56 are allocated and available in the Capital Improvement Plan. The estimated fuel facility cost is $955,978.56 with an additional $25,000 as contingency funding for any unforeseen equipment or other costs, as needed.
ATTACHMENTS
Blue 1 Energy Quote
SUGGESTED MOTION:Reccomended Action
I move to approve and authorize the City Manager to execute the Cooperative Purchase Agreement; authorize City staff to exercise options to renew; and approve the cooperative purchase of the above ground fuel storage and dispensing components with management system from Blue 1 Energy Equipment in an amount of $980,978.56.