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Home My WebLink About09cii MOTION - BULK FUEL COUNCIL COMMUNICATION TO: Mayor and Council FROM: Gregory Strong, Ron Thornton DEPARTMENT: Public Works DATE: March 17, 2025 SUBJECT: 2025 Bulk Fuel & Fluid Senergy Petroleum DESCRIPTION: Approval of 2025 purchase of bulk fuel & fluids through Senergy Petroleum. RECOMMENDATION: Staff recommends City Council approve, by motion, the 2025 Bulk Fuel & Fluids Purchase with Senergy Petroleum in the amount of $481,000. PREVIOUS COUNCIL ACTION: Oct 21, 2024 - 2025 budget approved, including $481,147 for bulk fuel SUMMARY: The City of Englewood contracts annually for the procurement of bulk fuel to support a wide range of municipal vehicles and equipment. The Fleet Division oversees these purchases and distributes fuel through the City's fueling station at the Service Center. Deliveries are scheduled as needed throughout the year based on usage. For 2025, staff is requesting approval of this purchase to ensure continued operational efficiency and cost-effectiveness in fueling City- owned vehicles and equipment. This purchase is under a Cooperative Purchase Agreement. ANALYSIS: The City of Englewood utilizes the Colorado Multiple Assembly of Procurement Officials (MAPO) cooperative contract with Senergy Petroleum. This procurement method allows MAPO members to secure competitive bids from a broad pool of suppliers, resulting in lower fuel prices than individual municipalities could obtain independently. Per Englewood Municipal Code 4-1-3-1(c)(1), the City may approve such contracts by motion when the contract value exceeds $125,000 if unbudgeted or, as in this case, exceeds $250,000 if budgeted. MAPO’s pricing structure follows a Daily Pricing Option, where a fixed margin (in cents per gallon, up to four decimal places) is added to the rack average price published by the Denver, Colorado Oil Price Information Service (OPIS) to determine the final purchase price. Page 397 of 2454 Fuel Usage is as follows: Department Gallons Fuel Cost for 2024 Parks 13,639 $40,801 Utilities/SPR 55,249 $184,746 Police 44,324 $127,510 Community Development 7,566 $21,041 I.T 113 $338 Public Works 18,399 $58,957 Total 139,290 $433,393 A purchase order (PO) for $125,000 was issued in early 2025 and will be billed against the total contract amount, if approved. Following this transaction, the remaining contract balance stands at $356,000. This expenditure aligns with the City’s fuel procurement strategy under the MAPO agreement and was accounted for within the budgeted contract value. The remaining balance will continue to support ongoing fuel purchases under the cooperative pricing structure, ensuring cost-effective and uninterrupted fuel supply for City operations. COUNCIL ACTION REQUESTED: Staff requests that the City Council approve, by motion, the 2025 bulk fuel and fluids purchase with Senergy Petroleum in the amount of $481,000. FINANCIAL IMPLICATIONS: The City's fuel expenditures for the past five years are summarized in the attached graph. Staff anticipate the following fuel costs for 2025: Year Total 2020 $258,005 2021 $389,714 2022 $486,747 2023 $473,962 2024 $433,393 2025 $481,000 Therefore, staff is requesting approval of a purchase order with Senergy Petroleum for $481,000. Fuel purchases and gallons used will continue to be tracked by fuel type and by department. $481,147 is included in the 2025 budget under Account No.61-1007-53001, Fuel. A supplemental appropriation would be sought from City Council if the $481,000 amount is exceeded. CONNECTION TO STRATEGIC PLAN: Strategic Outcome: Governance Page 398 of 2454 A city government that is accountable, effective and efficient. Fleet Services receives the best possible price for fuel for city vehicles and equipment by utilizing the Bulk Fuel Purchase and Delivery contract awarded to Senergy Petroleum by MAPO (Colorado Multiple Assembly of Procurement Officials). ATTACHMENTS: Contract Approval Summary RFP-22-22-MAPO Bulk Fuel Purchase & Delivery for CO MAPO PowerPoint Page 399 of 2454 City of Englewood, Colorado CONTRACT APPROVAL SUMMARY Contract Number City Contact Information: Staff Contact Person Greg Strong Phone 303-762-2545 Title Fleet Supervisor Email Gstrong@englewoodco.gov Summary of Terms: Original Contract Amount $481,000 Start Date 1/1/2025 Amendment Amount $-End Date 12/31/2025 Amended Contract Amount $481,000 Total Term in Years 1.00 Renewal options available Payment terms (please describe terms or attached schedule if based on deliverables) Vendor Contact Information: Name Senergy Petroleum Contact Mike Principato Address 6301 Ralston Rd Phone 303-350-3756 Email Mike.Principato@GoSenergy.com Arvada Co 80002 City State Zip Code Contract Type: Please select from the drop down list CFS-Contract for Services Descripiton of Contract Work/Services Supplying Fuel and Fluids to the City of Englewood Procurement Justification of Contract Work/Services The City of Englewood previously utilized a Cooperative Purchasing Agreement obtained from the Colorado Multiple Assembly of Procurement Officials (MAPO) with Senergy Petroleum. MAPO uses cooperative agreements to obtain bids for thproducts needed by its members from a larger pool of providers. Budget Authorization of Contract Work/Services Budgeted for in Account 61-1007-53001 Fuel Page 400 of 2454 Source of Funds: CAPITAL ONLY Item A B C D 1=A-B-C-D Capital Tyler New World Budgeted?Spent To Encumbrance Contract Budget Operating Year Project # / Task #Fund Division Account Line Item Description YES / NO Budget Date (Outstanding PO)Amount Remaining O 2025 61 1007 53001 Fuel Yes $481,147 $-$-$481,000*$147 O $-$-$-$-$- O $-$-$-$-$- O $-$-$-$-$- O $-$-$-$-$- Total Current Year $481,147 $-$-$481,000 $147 C $-$-$-$-$- C $-$-$-$-$- O $-$-$-$-$- O $-$-$-$-$- O $-$-$-$-$- Total - Year Two $-$-$-$-$- GRAND TOTAL $481,147 $-$-$481,000 $147 NOTES/COMMENTS (if needed): *A purchase order (PO) for $125,000 was billed against the total contract amount ($481,000) in early 2025. Following this transaction, the remaining contract balance stands at $356,000. This expenditure aligns with the City’s fuel procurement strategy under the MAPO agreement and was accounted for within the budgeted contract value. The remaining balance will continue to support ongoing fuel purchases under the cooperative pricing structure, ensuring cost-effective and uninterrupted fuel supply for City operations. Process for Choosing Contractor: Solicitation Name and Number:Rfp 22-22 Attachment (For Capital Items Only / Expense Line Item Detail is Located in OpenGov): All Other Attachments: PLEASE NOTE: City Council Approval Required for the following: - Budgeted Contracts or Agreements greater than $250,000 - Non-Budgeted Contracts or Agreements greater than $125,000 Solicitation Evaluation Summary/Bid Tabulation Attached Prior Month-End Project Status and Fund Balance Report Evaluation Summary/Bid Tabulation AttachedEvaluation Summary/Bid Tabulation AttachedEvaluation Summary/Bid Tabulation Attached Contract Copy of Original Contract if this is an Amendment Copies of Related Contracts/Conveyances/Documents Addendum(s) Exhibit(s) Certificate of Insurance City of Englewood, Colorado CONTRACT APPROVAL SUMMARY Page 401 of 2454 Department of Finance PURCHASING DIVISION 5334 Sam Pnnca Sheet LIillelOHColorado W204 I36 Prone 30377954430 Fax 30373877929 www ampal Iuegov LUiYi AHAFAHOE coUNTv COLUHADD'S Fmsr roan WEAVER DIrecloI May 29,2024 Mike Princrpato Thomas Walker Senergy Petroleum 6301 Ralston Rd. Arvada,CO 80002 Mike PrincI ato osener corn Thomas Walker@gosenergx.com RE:Bulk Fuel Purchase and Delivery for Colorado MAPO Agencies RFP-22-22_MAPO Mr.Walker and Mr,Principato. HIIl Petroleum entered Into an agreement for Bulk Fuel Purchase and DeIIverfor Colorado MAPO Agencles on August 01,2022.Arapahoe County then consented to the assignment of the agreement from Hill Petroleum to Senergy Petroleum effective November 2,2022.Please find attached with this letter the Extension of the Agreement. Please sign and e-mail back a scanned copy,along with current pricing and an updated Certificate oi Insurance,within ten (10)business days of the date of this letter. Sincerely, Sarah Huerta Senior Purchasing Agent Cc:Purchasing File RFP-22»22_MAPO Page 1 of 3 Revised March 2021 Extension 2 of 4 Page 402 of 2454 May 29,2024 Mike Principato Thomas Walker Senergy Petroleum 6301 Ralston Rd. Arvada.CO 80002 MikePrinci ato osener .com Thomas.Walker osener .com RE:Bulk Fuel Purchase and Delivery for Colorado MAPO Agencies RFP-22-22__MAPO Arapahoe County and Senergy Petroleum entered into an agreement for Bulk Fuel Purchase and Delivery for Colorado MAPO Agencies on August 1.2022‘The parties may mutually agree upon an annual extension of this agreement pursuant to the provisions as set forth in the original Agreement for Services. Senergy Petroleum hereby agrees to maintain market value pricing without additional increases,and all parties mutually agree upon an annual extension of this agreement pursuant to the provisions set forth in the solicitation. Staff has determined that it is to the best interest of the County to extend this agreement from August 1,2024,through July 31,2025. By executing the signature page,both parties agree to the extension of this Agreement for Services or Purchase Agreement. RFP-22»22_MAPO Page 2 of 3 Revised March 2021 Extension 2 of 4 Page 403 of 2454 SIGNATURE PAGE CONTRACTOR: 6/6/24 Dale: ARAPAHOE COL NTY 06/06/2024Dale: RFP-22-22_MAPO Page 3 of 3 Rewsed March 2021 Extension 2 0M Page 404 of 2454 2025 Bulk Fuel and Fluids Purchase Agreement Greg Strong Pa g e 4 0 5 o f 2 4 5 4 2024 Monthly Fuel Usage Pa g e 4 0 6 o f 2 4 5 4 2024 Fuel Cost by Department Pa g e 4 0 7 o f 2 4 5 4 Prior Fuel Costs & 2025 Projected Cost 01 0 Chart Title ……… Pa g e 4 0 8 o f 2 4 5 4 Recommendation •Based on historical cost analysis, staff recommends City Coincil approve, by motion, the 202 Bulk Fuel and Fluids purchase with Senergy Petroleum utilizing the MAPO contract and a PO for $481,000 Pa g e 4 0 9 o f 2 4 5 4