FY2019-04 Petro Star Inc. dba North Pacific Fuel - Facility Fuel Oil and Highway Fuel for KIB Facilities and VehiclesOWNER - GENERAL CONTRACTOR
AGREEMENT
Contract No. FY2019-04
THIS AGREEMENT, made this 25a' day of July, A.D., 2018, between the Kodiak Island
Borough, acting by and through its Borough Manager, party of the first part, and Petro Star Inc, dba
North Pacific Fuel of Kodiak, Alaska, party of the second part, hereinafter called the Contractor.
WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein
specified and agreed to by the party of the first part, hereby covenants and agrees that this
contract will supply and deliver No.I and 2 heating oil and highway fuel to KIB facilities. KIB
facilities include the Landfill/Baler Equipment, Maintenance Building, Kodiak Island Borough
Main Bldg, Projects Office, KFRC Main Bldg & Dorms, Women's Bay Fire Station, Bayside
Fire Station, other rental facilities, such as the Red Cross Bldg (610 Egan Way).
The bidding process is performed by the school district. Bid proposal instructions require
vendors to use an industry base cost (known as the Seattle OP1S price. This is n posted daily
price of heating fuel in Seattle). On lop of the OPIS price each vendor adds their margin or price
to do business. The decision to award a contract is not based on the cost of the fuel cost, but on
the bidder's margin. The vendor that offers the lowest margin is selected to supply the fuel. This
way, as the market price of fuel increases and decreases, the margin cited in the bid offering
remains the same.
The bid packet for the heating fuel and highway fuel went out for a three-year contract. Results
came back and Petro Star dba North Pacific Fuel was chosen to supply highway fuel and heating
fuel to the Borough facilities. The lowest margin offered was 0.390 cents.
These are the same terms the School District selected when it approved its heating fuel contracts
with Petro Star.
Vendors No.] Town Vendor No.2 Town Hiehwav Fuel
Petro Star $2.49 Petro Star 52.49 Petro Star 53.23
Kodiak Marine 52.58 Kodiak Marine S2.75 Kodiak Marine S3.01
Mgad
Petro Star $2.81
Petro Marine S2.76
Page 1 ar4
Fiscal Notes
Building
KID Main Building
KID Projects Office (720 Egan)
Women's Bay Fire Dept: Two Tanks
Bayside Fire Dept.
KID Baler1andfill Two Tanks
KID Maintenance Bldg (627 Egan)
Aux Bldg, Red Cross (610 Egan)
Account Numbers
220 232 450 360
220 241 450 360
252 214 450 360
250 212 450 360
#2 Fuel
#1 Fuel
#1 and #2 Hwy. Fuel
#I Fuel
530 731 701 450 360 #1 and #2 Hwy Fuel
220 232 450 360
220 232 450 360
KFRC Main Bldg (301 Research Court) 555 758 481 120
KFRC Dorms (225 Research Court) 555 759 481 120
#2 Fuel
#1 HF
#2 HF
#2 HF
Chiniak Tsunami Shelter 220 232 450 360 #1 (suspended)
This contract commences from July 1, 2018 through June 30, 2021. The Manager was approved to
execute Contract No. FY2019-04 at the July 19`h regular Assembly Meeting to Petro Star for both
No. 1 & 2 Heating Fuel and Highway Fuel delivery to Borough Facilities for a three-year term based
on the margin of 0.390 cents above the average monthly OPTS quoted price.
The Contractor further covenants and agrees that the entire work shall be done under the
administration and to the complete satisfaction of the Kodiak Island Borough, subject to inspection at
all times and approval by any participating agency of the Government of the United States of
America, and in accordance with the laws of the State of Alaska and rules and regulations of said
Federal Agency.
The Contractor further covenants and agrees that all and everyofsaid materials and labor shall be in
strict and entire conformity in every respect with the Scope of Work Document attached to this
Agreement and made a part hereof. and in case any of said materials shall be rejected by the
Borough Manager or his authorized representative, as unsuitable, then the said materials shall be
removed or replaced with other approved materials and the said labor shall be done anew to the
satisfaction and the approval of the Borough Manager or his representative, at the cost and expense
of the Contractor.
To the fullest extent permitted by law, the Contractor agrees to defend, pay on behalfof, indemnify
and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and
volunteers and others working on behalf of the Kodiak Island Borough against any and all claims,
demands, suits or loss, including all costs connected therewith, and for any damages which may be
asserted, claimed or recovered against or from the Kodiak Island Borough, its elected and appointed
officials, employees, volunteers or others working on behalf of the Kodiak Island Borough, by reason
of personal injury, including bodily injury or death and/or property damage, including loss of use
thereof, which arises out of or is in any way connected or associated with this Agreement.
page 2 ur4
Without limiting the Contractor's indemnification, it is agreed that the Contractor will purchase, at
his own expense and maintain in force at all times during the performance of services under this
Agreement, the following policies of insurance. Failure to maintain insurance may, at the option of
the Borough Manager, be deemed defective work and remedied in accordance with the Agreement.
Where specific limits are shown, it is understood that they will be the minimum acceptable limits. If
the Contractor's policy contains higher limits, the Borough shall be entitled to coverage to the extent
of such higher limits. As a condition of award, certificates of insurance must be furnished to the
Borough Manager.
These certificates must provide thirty (30) day prior notice to the Borough in the event of
cancellation, non -renewal or a material change in the policy. Proof of insurance is required of the
following:
A. Workers' Compensation Insurance if applicable:
The Contractor shall provide and maintain, for all employees of the Contractor engaged in
work under this Contract, Workers' Compensation Insurance as required by AS 23.30.045.
The Contractor will be responsible for Workers' Compensation Insurance for any
subcontractor who provides services under this Contract. This coverage must include
statutory coverage for States in which employees are engaging in work and employer's
liability protection not less than S 100,000.00 per person, $100,000.00 per occurrence.
S. Comprehensive (Commercial) General Liability Insurance with coverage limits not less
than $300,000.00 combined single limit per occurrence and annual aggregates where
generally applicable and will include premise operations, independent contractors,
products/completed operations, broad form properly damage, blanket contractual and
personal injury endorsements.
C. Comprehensive Automobile Liability Insurance covering all owned hired and non -owned
vehicles and with coverage limits not less than S100,000.00 per person, $300,000.00 per
occurrence bodily injury, and $50,000.00 property damage.
The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for
furnishing all the materials and laborwhich maybe required in the prosecution and completion of the
whole work to be done under this Agreement, and in all respects to complete said Agreement to the
satisfaction of the Borough Manager.
It is further distinctly agreed that the said Contractor shall not assign this Agreement, or any part
thereof or any right to any of the monies to be paid him hereunder, nor shall any part of the work be
done or materials famished under this Agreement.
Payment for services rendered under this Agreement shall be made by the Kodiak Island Borough
within thirty [30] days of completion/delivery, acceptance by the Kodiak Island Borough and
invoicing by Contractor.
Pulte 3 of 4
IN WITNESS WHEREOF, The Kodiak Island Borough Manager, by authority in him vested, has
executed this contract on behalf of the Kodiak Island Borough, and the said Petro Star dba North
Pacific Fuel have hereunto set their hands and seats, the day and year first above written.
KODIAK ISLAND UGH
By
ichacl 'overs
Borough Manager
By --
Phil Kov cs
Director, Engincering/Facilities
CONTRACTOR
ByVV ' 4
Name: Petro Star, Inc.
Title. Terminal Manager
Att%ka�mmc
/
By D8'117� `6
d of 4
(�
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17J(1 Kodiak Island Borough School District
l 722 Mill Bay Road
Kodiak, Alaska 99615
To: Board of Education
Through:
Larry LeDoux, Superintendent
From:
Sandy Daws, Chief Financial Officer
Gregg Hacker, Maintenance/Facilities Director
Ferlene Fuentes, Purchasing Supervisor
Date:
May 3, 2018
Subject:
FYI Heating Fuel Bid Award
On April 3, 2018, the Purchasing and Maintenance/Facilities Departments sent
out invitations to bid for Heating Fuels for use in supply and delivery of #1 and #2
heating fuel to the road system schools, KIB facilities, Providence Kodiak, and
supply to non -road system schools. A legal notice was published in the Kodiak
Daily Mirror and the Anchorage Daily News on April 6, 13 and 18, 2018. The
bids were publicly opened at the District's Finance Office at 2:10 P.M. on April
30, 2018.
The terms and conditions of the bid are attached. Please note that the price per
gallon is in direct proportion to the previous months averaged Seattle OPIS (Oil
Price Information Services) rack price per gallon (the vendor's fuel cost) plus the
vendor's margin and may fluctuate monthly throughout the contract period.
The responsive bids were analyzed and we recommend Board action to award the
bid to Petro Star Inc. dba North Pacific Fuel for the supply and delivery of
Heating Fuels for a three-year term commencing July 1, 2018 and ending June 30,
2021.
KIBSD/KIB FUEL BID SPECIFICATION
The Kodiak Island Borough School District (KIBSD), the Kodiak Island Borough (KIB) and
Providence Kodiak are soliciting bids from qualified firms for the supply and delivery of#1 and
#2 heating fuel to the road system schools, KIB facilities, Providence Kodiak, and supply to non -
road system schools.
Each separate entity shall award:
A three-year contract commencing July 1, 2018 and ending June 30, 2021 to the
contractor submitting the lowest margin above the averaged Seattle OPIS rack
price per gallon for the period commencing April 10 and ending May 08, 2018 for
each gallon delivered or supplied to the KIBSD, KIB or Providence Kodiak. The
contractor's margin must remain firm for the term of the contract.
Documented price fluctuations throughout the contract period may change the delivered price per
gallon monthly in direct proportion the average daily Seattle OPIS rack price per gallon for the
previous month. Documentation of these price fluctuations, the calculations and the resulting
new price(s) per gallon shall be faxed to the KIBSD Maintenance Office, the KIB Engineering
and Facilities Office and Providence Kodiak by noon on the second business day of the month.
Example: if the Vendors cost was $1.00 plus a $.18 margin ($1.18 per gal) and the averaged
price change for the previous month was two cents per gallon, the price increase or decrease to
KIBSD, KIB or Providence Kodiak would increase ($1.20) or decrease ($1.16) of two cents per
gallon for the new month.
The delivered price per gallon for the month of July 2018 shall be the averaged Seattle OPIS
rack price per gallon for the month of plus the contractor's margin.
All accounting and reporting shall be separated into three distinct contracts/accounts, one
for the KIBSD, one for the HIB and one for Providence Kodiak.
The contractor's delivery system shall ensure adequate fuel levels be maintained at all times.
Costs associated with deliveries made outside of normal working hours are to be borne by the
successful contractor.
The KIBSD reserve the right to reject any or all bids.
PROTECTION OF PROPERTY AND SPILL PREVENTION: The contractor shall not
damage or contaminate existing buildings, equipment, asphalt pavement, soil, and vegetation
(such as trees, shrubs and grass) on the contracting agency's property. If the contractor damages
or contaminates any such buildings, equipment, asphalt pavement, soil or vegetation, or other
facilities, they shall replace the damaged items or repair the damage at no expense to the
contracting agency and to the satisfaction of the contracting agency. Further, should the
contractor fail or refuse to make such repairs or replacements, the contracting agency may have
said repairs or replacement accomplished, and the contractor shall be liable for the cost thereof
which may be deducted from the amounts due under this contract.
The contractor shall take all measures as required by law to prevent petroleum, oil or lubricant
(POL) spills (including, but not limited to, any spilling, leaking, pumping, pouring, emitting,
emptying, or dumping into or onto any land or water). In the event the contractor spills any POL
(including, but not limited to, gasoline, diesel fuel, fuel oil, lubrication oil, hydraulic oil or
aviation fuel), the contractor shall be responsible for the containment, clean-up, and disposal of
the POL spilled. Should the contractor fail or refuse to take the appropriate containment, clean-
up, and disposal actions, the contracting agency may do so itself. The contractor shall reimburse
the contracting agency for all expenses incurred including fines levied by appropriate agencies of
federal or local governments.
SPILL CLEAN-UP: The contractor will be responsible for all fuel spill(s), caused by their neg-
ligence that may occur during transit or fueling operations. Contractors must immediately report
spillage to the local Alaska Department of Environmental Conservation (DEC), and to the United
States Coast Guard District Office (USCG), as required by law, and clean-up the spillage. Failure to
do so will cause the contracting agency to take corrective action and charge the contractor for all
related costs.
COMPLIANCE: The contractor must comply with all federal, state, local and borough regulations,
codes and laws; be liable for all required insurance, licenses, permits, and bonds; pay all applicable
federal, state, local and borough taxes.
Please note that the following estimated annual quantities are for bid information only and
are not to be Interpreted as guaranteed deliverable quantities. Weather conditions and
building occupancy will determine actual consumption.
K13SD Facilities
Chiniak School
#1
3,000
East Elementary School
#2
25,000
Kodiak High School
#2
165,000
Kodiak Middle School
#2
26,000
Kodiak Middle School Green houses
#1
5,000
Main Elementary School
#2
15,000
North Star Elementary School
#2
1 16,500
Peterson Elementary School
#2
17,000
Non -Road System Schools
#1
15,000
KIBSD Estimated gallons
#1
287 500
Old Business office
#2
6,000
KIB Facilities
Aux Building 610E an
#1
1,200
Baler Facility
#1
4,000
Baler Facility
#2
13,300
Bayside Fire De t
41
5,000
Borough Building
02
15,500
Cottage (720 Egan)
#1
1,200
Chiniak Tsunami Shelter
#1
500
Kodiak Fisheries Research Center
#2
55,000
Kodiak Fisheries Apartments
#2
12,000
Women's Bay Fire Det
#1
2,400
Old Business office
#2
6,000
HIB Estimated gallons
116 100
Providence Kodiak Facilities
Providence Kodiak #2 120,000
Providence Kodiak #1 300
Providence Estimated gallons 120,300
KIBSD/K1B HEATING FUEL BID
Vendor Information
Business Name: tv )T )1 Hj L bc` Nei- A bC it %6J� I
Contact Name: K 1 Gh 61•Y(i Arj- h j1
Contact Phone Number: CI C7- 4 &(r' 3 Z `/ )
Contact FAX Number: CI P� - Ll rb - 3 Z OS
Mailing Address:
I.�t?C1iGIK i�-k. �1�7�/S
Location (Street address): _')S_ S )M1, )CC- 1- J h'aC•k
E-mail address: 1 , bar )_L" t7' P{ bl'S )Q#', c n-r�
Three (3) year contract pricing
r.A Y-6
Base* = Z•OSS452+ . 3c10 (margin) I , lzw3Delivered price per gallon for Town ff I
Dose* = Z OB�`Kz+ 0 (margin) q•,CIZ1r43Dclivered price per gallon for Town 0 2 ��•49/ Gc1J
Base* = Z.ORi Z+ ,3W (margin)+ O/ZLL)3Price per gallon for non -road system schools :—i-LI1110IJ
njcL c1-)
Base* = The averaged Seattle OPTS rack price per gallon for the period commencing Arw4l 2018
, �'t,,l�41 &Jz_
Signature
l
.,2-
Title
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Dasc
1.4"MIR 31_rl
Vendor Infonnation
Business Name:
Contact Name: 'Ya `a r n.c_ p l a rl t
Contact Phone Number. 90-7 L/Q ,!) _ 3//y�1
Contact FAX Number: 907. LlkLo b . Agl3
Malting Address: loq
k�� O 14 14 95 4, Z -17'
Location (Street address):
Email address: , a gTt-E C� L/ g [n „^
Three (3) year contract pricing
Base" =2.141 Z+, _ (margin) =L --5"i 6'LDelivered price par gallon for Town # 1
Base" _ .1i' + /-(. 29 (margin) -z. SM Delivered price per gallon for Town # 2
Base" =2 (41Z +_K (margin)=z5615Price per gallon for non -road system schools
Base" -The averaged Seattle OPIS rack price per gallon for the period commencing April 2018
Ant,1�
Date
V�Q c- 6 re� X_%q r,k r
N 1
North Pacifiduel
P.O. &M 1487
7159teaiot
Bodimc amen 99015
M114 M451e1.(9M 48&]205/a
TO: Kodiak Island Borough/Kodiak Island Borough School District
NOTiFICA*nON OF PRICE CHANGE
This Is to notify you that effective q the following price change occurred:
Heating Oil N2
Increase
Per gallon
By: Lca d,,
North Pacific Fuel
PETRO ST�r' R INC.
� Y4ISDHM Ot �OCtIC YOPI R[GOIMl CUd'(N:Ngfl
Decrease
Per gallon
New Price
Per gallon
9;2.57.3t
Business Name: 2aA r --p ffla r, nz SP r v i r g
Contact Name: 7A,kr',, d%�era
Contact Phone Number. C%67 LIRA. 3U�—1
Contact FAX Number. 9 157 . L) ?to _ 4 R 1�
Mailing Address: I Q 4 J W ym:
Location (Street address): SA,,
E-mail address: _,+moo v DCJr6 V9, 4-pnn
Three (3) year contract pricing
Base+= Z•5 j!;+.OI OS (tax) +A7-9 (margin)-3.GlClS Price per gallon far Regular
Base" = Z, SZI +,O 0 (tax) +_q29 (margin) =1761 Price per gallon for Diesel
F4,,L.rn\ L%.. -.k- T": S.no1
4+=)•e� obi --.blase f w.\ Svrc"(,au ; 4.0095
Base*;P h avergO We OPl§ rack price per gallon for the month of April 2018.
?A -r- (--P« g 1r\IGtu .cc.
6
Title {{��
04.504
Date
KIBSD HIGHWAY FUEL BID
Vendor Information
Business Name: dbCk NC)'fi, t-%61(iL F11 -Cl
Contact Name: �iCItNr(I _90 V1t
Contact Phone Number: q D-7 - y h - 7 Ly
Contact FAX Number: —(I b'V — 3 2 05
Mailing Address: S S),el,keF Sfe_e, l-
KOcniik 4y-- clnw
Location (Street address): -'I Ssot Ii 1(0 F S }'r.t e {
E-mail address: _YmiJOrith�(+% h{}i;$}tir. �c i1
Three (3) year contract pricing
Base* = 2.5 &3yi0+ , 1751a93(tax) + 0.3,o (margin) =3 Z?9053Price per gallon for Regular
Base*=J?•189452-+ 3356N3(tax) + 0.350 (margin)=;1.y1y09r price per gallon for Diesel
)JIM -LI -1
Base* = The avcrageedd Seattle OPIS rack price per gallon for the month of April 2018.
KrI..G'��7 (i fir• _ _
Signature
Title—
Date
Martha Barnett
From:
Dave Conrad
Sent:
Thursday, May 31, 2018 1:25 PM
To:
Martha Barnett
Subject:
FW: Fuel Oil Contract
Please include this email on the Highway Fuel Contract
After receiving clarification from the KIB Manager, I spoke with Rick Borton, North Pacific Fuels Kodiak Manager in
regards to the fuel contracts. He discussed and approved with his superiors that their firm will honor the highway fuel
price as provided to the KIBSD for the KIB.
From: Michael Powers
Sent: Tuesday, May 8, 2018 8:04 AM
To: Dave Conrad <dconrad@kodiakak.us>
Subject: RE: Fuel Oil Contract
Follow on with the low bidder.
From: Dave Conrad
Sent: Monday, May 7, 2018 4:36 PM
To: Michael Powers <mpowers@kodiakak.us>
Subject: RE: Fuel Oil Contract
After reading your answer I have called the fuel company for clarification. Then it occurred to me I should request a
clarification. Put it out to bid or follow on with the low bidder?
From: Michael Powers
Sent: Monday, May 7, 2018 11:42 AM
To: Dave Conrad <dconrad@kodiakak.us>
Cc: Dora Cross <dcross@kodiakak.us>; Martha Barnett <mbarnett@kodiakak.us>; Jessica Basuel <ibasuel@kodiakak.us>
Subject: RE: Fuel Oil Contract
Yes......
MP
From: Dave Conrad
Sent: Monday, May 7, 2018 11:40 AM
To: Michael Powers <mpowers@kodiakak.us>
Cc: Dora Cross <dcross@kodiakak.us>; Martha Barnett <mbarnett@kodiakak.us>; Jessica Basuel <[basuel@kodiakak.us>
Subject: Fuel Oil Contract
The KIB has been working with the KIBSD and using the KISBD bids for the fuel oil contract for KIB facilities. This process
has just ended and the KIB was not included on the Highway Fuel portion of the RFP. As the same two companies bid
each year and the KIBSD has provided the copy of the pricing for the Highway Fuel, can we consider calling the apparent