Purchase order 23000511 for $167,855.60 was issued to Frazier Oil Company for Substation Fuel Oil for the Power & Light Department.

Staff is providing notification to the City Council of this purchase.

On October 22nd, 2022, a purchase order was issued for fuel oil deliveries to Substations I & J. This purchase was done to replace fuel that is burned to support generation requests to the Southwest Power Pool (SPP), of which the City is a member. 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.

This purchase was 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 $167,855.60. Funding was included in the fiscal year 2022/23 adopted budget, project string E (1329 -F - -) Fuel Oil Purchases, account number E (6145-5309) Operating Supplies.