Purchase orders 22001048 and 22001051, in the amounts of $132,837.12 and $100,135.63 were issued to Frazier Oil Company for Substation Fuel Oil for the Power & Light Department.

Staff is providing notification to the City Council of these purchases.

On June 17th two separate purchase orders were issued for Substations I & J for fuel oil. These purchases were done to replace fuel that is burned to support generation requests to the power pool. These are routine expenditures but the total for these expenditures is higher than normal due to rising prices for fuel oil related to various economic factors.
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The expenditures were done through the Kansas City, MO cooperative contract for fuel that the City of Independence has been a part of since 2004. Competitive bidding is not required where supplies, materials, equipment, contractual labor, insurance and services are purchased through bids established by a government purchasing entity or cooperative. The cooperative bids used will have been established pursuant to RSMo.70.220, or generally accepted governmental purchasing practices through the competitive bidding process. Purchases by this method shall be exempt from Section 8.06.003 of the Code and shall not require formal Council approval, but will be reported in accordance with Section 8.06.003.

The fiscal impact to the City is $232,972.75. Funding was included in the fiscal year 2021/22 adopted budget, project string E (1329 -F - -) Fuel Oil Purchases, account number E (6145-5309) Operating Supplies.