Title
RESOLUTION AWARDING A CONTRACT TO WEX BANK FOR CIRCLE K SERVICE STATION FUELS FOR 2023 FOR AN AMOUNT NOT TO EXCEED $1,300,000.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Wex Bank, for the purchase of Circle K service station fuels as needed for year 2023 for an amount not exceed $1,300,000, payable from 660-015-5212 (fleet services fund; public administration; motor fuels).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution awards a contract to Wex Bank for Circle K service station fuels in 2023. This is the second year of the contract period which will run from January 1, 2023 through December 31, 2023 with three remaining one-year renewal options.
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 current price. The estimated contract cost is based on historical usage and rack rates.
The purchasing division posted an Invitation for Bids on October 4, 2022 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
(now known as Circle K)
Kwik Trip, Inc. $.02 over rack rate 9