Agenda Packets - 1983/02/07 - Laserfiche WebLink

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14EMO TO: Mayor and City Council,) FROM: Clerk -Administrator f� DATE: February 2, 1983 SUBJECT: PROPANE CONVERSION BIDS The City of Mounds View received proposals from four companies for the conversion of five vehicles (two Police squads, two Public Works pickups, and Sewer Jet Rodder) from gasoline to propane fueling. The bids received were as follows: Conversion Cost Propane Price/Gallon Northern Propane $3,689.55 .658 + tax North Central Public Service $4,042.00 .717 Texgas $4,270.00 .675 Profil, Inc. $4,570.00 .699 It should be noted at this point that the bids on propane were for the market price at that time. Since then propane prices have decreased nearly 5G per gallon. Thus, our purchase price at this time would be between .60 and .65/gallon. Also, initial staff projections were for a conversion cost of $4,800.00, thus, all bids are below budget. After receiving the bids, City Mechanic Dick Schmidlin and I reviewed the bids in detail and submitted additional questions to each bidder for a written response, as well as interviewing each bidder and checking references, particularly those of other cities in the metro area using propane. Based on our review of the bids and the additional information we have received, staff would offer the following analysis with respect to the bids and vendors. Two of the vendors, Northern Propane and Profil, Inc., have their garage and storage facilities located in the Eagan and Shakopee areas which would make access to service facilities potentially very time consuming and difficult. Texgas has their service and storage facilities located in New Brighton and North Central Public Service is located in Coon Rapids. Those municipalities serviced by Texgas were very positive in their comments about the service and technical capabilities of the organization. Anoka, which is serviced by North Central Public Service, also had very positive comments about their vendor.