The Kenai City Council adopted a resolution authorizing a service contract extension to provide refueling services for city facility fuel tanks. Crowley Fuels LLC was awarded a service contract on August 3, 2018 through approval of a prior resolution to furnish and deliver fuel to various city facilities for generators as well as operational fuel at the Kenai Municipal Airport, including the Airport Operations Facility, which fuels various apparatus equipment in support of Airfield Maintenance Operations. That agreement ran through June 30, 2022 and could be extended by mutual agreement for one additional single year contract extension.
The city of Kenai expressed satisfaction with the services that Crowley Fuels provides to date, and, on June 21, 2022, they agreed to hold their pricing for the next year to the same Oil Price Information Service (OPIS) market average percentage savings originally agreed to.
The contract, valued in the amount of $84,500 and intended to run through June 30, 2023, is deemed provide a good value to the operations of the city of Kenai. That $84,500 was divided up into several purchase orders, including one for Water Plant Generator ($500), Waste Water Plant Generator ($1,000), Public Safety Generator ($500), Airport Terminal Generator ($2,500), and Airport Operations Fuel for equipment ($80,000).
Scott Curtin, Director of Public Works writes, “As example if diesel fuel was OPIS priced at $2.50/gal, our city cost would be $2.425/gal. If it was $4.00/gal, our city cost would be $3.88/gal.”
The savings equates to the city paying approximately 97% of the market average cost for fuel.
