Purchase orders 23001392, 23001394 and 24000056 for $75,475.39, $59,893.20, and $110,313.72 were issued to Frazier Oil Company and John Moore Oil Company for Substation Fuel Oil for the Power & Light Department.

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

On June 29th, June 30th and July 1st, 2023 deliveries of fuel oil were dispatched to Substations I & J. This expenditure was done to replace fuel that is burned to support generation requests to the power pool. This is a routine expense but the total for these expenditures was higher than normal due to rising prices for fuel oil related to various economic factors.

Frazier Oil is the company the City contracts with for fuel. In cases where Frazier Oil’s timeliness for delivery does not meet Power & Light’s Southwest Power Pool (SPP) requirements, Power & Light has to reach out to John Moore Oil Company as a backup provider.

Frazier Oil has a 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 $245,682.31. Funding is included in the fiscal year 2022-23 adopted budget, page 234, account number (6145-5309), Purchased Power, Operating Supplies, $135,368.59 and in the fiscal year 2023-24 proposed budget, page 235, account number (6145-5309), Purchased Power, Operating Supplies account number, $110,313.72.