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Item E09 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 11/19/08 Division: Public Works Bulk Item: Yes X No - Department: Fleet Management Staff Contact PersonlPhone #: Roy Sanchez / 292-3572 AGENDA ITEM WORDING: Approval to advertise for bio-diesel fuel deliveries to fueling stations owned and operated by Monroe County and/or the Monroe County School Board located from Key West to Key Largo, and approval to waive Purchasing Policy allowing Fleet Management to purchase bio-diesel over the $25,000.00 limit from licensed fuel providers without a contract while going through the bid process. ITEM BACKGROUND: As part of our Interlocal Fuel Agreement, the County and School Board agreed and have been purchasing bio-diesel fuel from the County's existing fuel provider Dion Oil Company, however Dion Oil Company has not been able to meet all our needs and we have had to attempt to get bio-diesel from other sources or resort back to regular diesel fuel. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: None. STAFF RECOMMENDATIONS: Approval to advertise for bids. TOTAL COST: Approx. $ 800.00 BUDGETED: Yes X No - COST TO COUNTY: Approx. $ 800.00 SOURCE OF FUNDS: 504-23502-530498 REVENUE PRODUCING: Yes - No X AMOUNT PER MONTH - Year - APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management _ DOCUMENTA TION: Included X Not Required_ DISPOSITION: AGENDA ITEM # Revised 11/06 MEMORANDUM TO: Dent Pierce, Director Public Works Division FROM: Roy Sanchez, Director ~ Fleet Management Department DATE: November 4,2008 RE: Agenda Submission / Information Memo The attached BOCC agenda item is to request approval to advertise for sealed bids for bio-diesel fuel deliveries to fueling stations owned and operated by Monroe County and/or the Monroe County School Board. Also,. to request approval to waive Purchasing Policy allowing Fleet Management to purchase bio-diesel over the $25,000.00 limit from licensed fuel providers without a contract while going thru the bid process. As part of our Inter-Local Fuel Agreement, the County and School Board agreed and has been purchasing bio-diesel fuel from the County's existing fuel provider Dion Oil Company, however Dion Oil Company has not been able to meet all our needs and we have had to attempt to get bio-diesel from other sources or resort back to regular diesel fuel. Our goal is to check and see if there are licensed contractors, including Dion Oil Company which can provide bio-diesel for the County and the School Board at a competitive price consistently over a period of time. Thank you. .a...II.I .,__,,_ ..._.__.._ ...........-. Sanchez-Roy From: Mercado-Pedro Sent: Thursday, October 30, 20082:47 PM To: Sanchez-Roy Cc: Leto-Beth SUbject: RE: bio diesel I don't have a problem with it so long as the item specifically states that the request to waive is for the interim only while you go through the RFP process. From: Sanchez-Roy Sent: Thursday, October 30,20082:23 PM To: Mercado-Pedro Subject: FW: bio diesel Pedro, If you would please review my question to Beth Leto (See Below) and let me know if it is Ok for us to prepare the Agenda Item requesting approval to waive Purchasing policy in order to continue the County's ongoing Biodiesel fuel program without a prolonged interruption. From: leto-Beth Sent: Thursday, October 30,2008 1:52 PM To: Sanchez-Roy Subject: RE: bio diesel Ok, but contact or send an email to Pedro first to make sure he's okay with it. Thanks, 93etft From: Sanchez-Roy Sent: Thursday, October 30,200810:21 AM To: leto-Beth Subject: bio diesel Beth, I am wondering if we could put an item on the agenda aSking to waive purchasing poRcy $0 that we can go over the $25,000.00 amount to purchase bio diesel from local contractor Blaylock Oil Company, and/or Florida State Contractor Mansfield Oil, who I believe are willing to deliver to us for a reasonable price, not to exceed an amount, until we can amend our existing contract, and/or advertise and finalize bids for bio diesel, or possibly all of our fuels. My best guess is it will take four to five months to negotiate changes with Dion's existing contract, get new requests amended, and approved by County Attorney, advertise for bids, award new contracts, etc. (Amount not to exceed will have to be approximately $200,000.00). If we are not able to do this I am afraid our biodiesel program will have to be put on hold for quite a while as we work out the problems with Dion's existing contract, and possibly get new contracts with new vendors. Roy Sanchez, Director Monroe COUhty Fleet Management 305-292-3572 305-292-3529 (fax) sanchez-roy@monroecountv-f1.gov HELP US HELP YOU! 11/4/2008 ... LI./MVVU ..I.V..~.__ ~AJ.."'" Sanchez-Roy From: Hall-Cynthia Sent: Friday, June 01,2007 12:25 PM To: Cherry-Ron Cc: Sanchez-Roy . Subject: RE: BIO-DIESEL FUEL Follow Up Flag: Follow up Flag Status: Red There is nothing in this contract that specifies that Dion Oil Company will be the exclusive supplier for all diesel fuel. In fact, the contract specifies that we will buy #2 and high sulfur diesel fuel from Dion (also octane gasoline), and I assume that those are different from biodiesel. Therefore, assuming you comply with Monroe County Purchasing Policy, it is possible to purchase biodiesel fuel from a different supplier. From: Cherry-Ron Sent: Friday, June 01, 2007 9:26 AM To: Hall-Cynthia Cc: Sanchez-Roy Subject: BIO-DIESEL FUEL Hi Cynthia, We have been asked to get some bio-diesel fuel to try in the Upper Keys for some of our small equipment, if you would, please review the attached contract with Dion Oil Co. to check if there is anything that would interfere us from buying bio-diesel fuel from another vendor/contractor (there are very few vendors that sell this fuel at this time)? Let me know if you have any questions or need more information. Thank you, Ron Cherry Jr. Sr. Coordinator Monroe County Fleet Mgt. 305-292-3452 305-292-3529 fax 11/4/2008