Title
Resolution to Authorize the Purchase of Vehicle and Equipment Motor Oil for the City’s Fleet for Five Years Beginning FY2018
Memorandum
The Fleet and Facilities Unit annually purchases approximately $48,000 of vehicle and equipment motor oil for use in City vehicles and equipment. Fleet and Facilities staff have found that receiving “spot” quotes, the current price when the product is needed, for the purchase and delivery of the motor oil is the most advantageous and cost effective method of purchase. This method also allows us to better manage our motor oil inventory.
This resolution will authorize the purchase of motor oil from any petroleum product distributor that complies with the requirements of the City’s non-discrimination ordinance and is the lowest responsible bidder. We currently request quotes from the following list of petroleum product distributors:
Corrigan Oil Company, Brighton, MI
Lenawee Fuels, Tecumseh, MI
Shrader Tire & Oil, Toledo, OH
Vesco Oil Corporation, Southfield, MI
Additional distributors can be added as we become aware of them, provided they comply with the City’s non-discrimination ordinance.
Adequate funds for vehicle and equipment motor oil purchases have been budgeted in the approved FY2018 Fleet and Facilities Unit Operations and Maintenance budget. Vehicle and equipment motor oil charges are passed through to the using service units via the fleet rates.
Staff
Prepared by: Becky Arold, Financial Analyst
Reviewed by: Matt Kulhanek, Fleet & Facilities Manager
Craig Hupy, Public Services Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Fleet and Facilities Unit purchases vehicle and equipment motor oil for the City’s vehicles and equipment; and
Whereas, It has been determined that it is advantageous to obtain spot bids at the time of vehicle and equipment motor oil purchases;
RESOLVED, That City Council approve the purchase of vehicle and equipment motor oil from any petroleum product distributor that meets the City of Ann Arbor’s non-discrimination ordinance requirements and is the lowest responsible bidder;
RESOLVED, That City Council authorize the Fleet and Facilities Unit of the Public Service Area to purchase vehicle and equipment motor oil as necessary using spot bidding for five years beginning with fiscal year 2018, subject to the availability of funding in subsequent fiscal years; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.