HomeMy WebLinkAboutAgenda Statement 1981/12/15 Item 10COUNCIL AGENDA STATEMENT
ITEM TITLE
SUBMITTED
Bids were
Purchasin
December
Bids were
Item 10
Meeting Date 12-15-81
., Resolution ~j~,jl~ Accepting bids and awarding contract for
liquefied petroleum gas
Finance Director/ (4/5ths Vote: Yes No X )
BY:
Purchasing Agent
received and opened at 2:OO P,M. on November 30, 1981, in the office of the
~ Agent for furnishing liquefied petroleum gas (-LPG) to the City .for the period
1, 1981 through May 31, 1982. Estimated usage during that period is 13,000 gallons.
requested for a six-month period due to fluctuating costs. Tt is our
RECOMP1ENL~ATION: That Council accept bids and award the contract to Petrolane Gas Service.
DISCUSSI N: Six vendors were mailed bid documents with three submitting the fo11oMAXIMUMds:
iinirT aRTrF PRICE FIRM % ESCALATION
BT DER """
.655 NO 3%
Pe rolane Gas Service
E1 Cajon
Va gas Inc. .692 YES -
Sa tee
.71 NO 5%
CI Propane Co.
Al ine
Due to ice fluctuations in LPG, a price adjustment clause is provided for in the bid
specifi tions. Petrolane submitted the low bid noting that their bid was not firm for the
period nd that the maximum percent of escalation would be 3%. Figuring the 3% escalation,
the maxi um price would be .6747 per gallon. This still qualifies them as low bidder.
For a v ndor to increase his price when there is a price adjustment clause in the contract,
he must give written notice to the City and furnish copies of the increase to the vendor
from th manufacturer. The City has the option to cancel the contract if it elects to do so.
FISCAL
JVE:iro
BID No.
IMPACT: Purchases to be made only on availability of funds as certified by
the Finance Department.
10-1981-82
try the City Cc~~_! ~:;if cf
Chan Vista, Cr,iif~rr~ia
Dated ~ ` ~ " ~ ~
Form A~113 (Rev. 11/79)