Title
RESOLUTION AMENDING RESOLUTION 21-0981R TO ALLOW A TRANSITION FROM HOLIDAY STATIONSTORES TO CIRCLE K AND WEX FOR SERVICE STATION FUELS FOR 2022 DUE TO SALE AND REBRANDING OF THE HOLIDAY STATIONSTORES.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to transition from a full-year contract with Holiday Stationstores to a partial-year contract with both Holiday Stationstores and Circle K with payments processed through WEX Bank for the purchase of service station fuels as-needed for year 2022 for a total amount still not to exceed $1,060,000, payable from 660-015-5212 (fleet services fund; public administration; motor fuels)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the transition from a full-year contract with Holiday Stationstores (Holiday) to a partial-year contract with both Holiday Stationstores and Circle K / WEX for service station fuels in 2022. Holiday Stationstores were sold in 2021 and are being gradually rebranded as Circle K. Circle K fleet payments are managed through WEX bank, so all payments will be submitted to WEX bank.
The City is working with Circle K and WEX to test a few fleet cards before fully transitioning the full fleet. It is anticipated that the transition will be complete by the end of April 2022, but if issues arise, it could be later. Due to the uncertainty of timing it is not possible to determine an exact amount of spend with each vendor, but estimates are $460,000 with Holiday and $600,000 with Circle K/WEX.
The initial contract period will still run through December 31, 2022 with four one-year renewal options; and the total amount authorized is unchanged at $1,060,000.
The bid price submitted below for payments to Holiday Stationstores was submitted by Circle K and will be the same price for payments to WEX Bank. The final fuel price is based on a fixed constant of $.02 cents per gallon over the Duluth daily refinery rack rate average. This is the same rate as the 2021 price. The estimated contract cost is based on historical usage and rack rates.
The purchasing division posted an Invitation for Bids on October 4, 2021 and received two responsive bids by the due date. The bids were evaluated based on the total overall cost to the City, factoring in the bid price, location and accessibility of service stations, and data and reporting capabilities.
Bid Price per Gallon Number of Stores
Holiday Stationstores $.02 over rack rate 11
Kwik Trip, Inc. $.02 over rack rate 9