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HomeMy WebLinkAboutItem 05 - Liquied Petroleum GasITEM 0 5 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER 41,11 MEETING DATE: JANUARY 6, 2004 SUBJECT: APPROVAL OF A RESOLUTION TO ESTABLISH AN ANNUAL CONTRACT WITH FERRELL GAS COMPANY FOR LIQUID PETROLEUM GAS (PROPANE) THROUGH AN INTERLOCAL AGREEMENT WITH THE CITY OF FORT WORTH RECOMMENDATION: City Council to consider approval of a resolution to establish an annual contract with Ferrell Gas Company through an existing interlocal agreement with the City of Fort Worth. The annual amount budgeted for this service is $30,000. FUNDING. Funds are available in the Fleet Inventory Account 100-14112. BACKGROUND: This procurement will be made in accordance with Texas Local Government Code, Chapter 271.102 which authorizes political subdivisions to contract with each other for governmental functions such as the purchase of goods and/or services. A local government that purchases goods or services under this subchapter satisfies any State law relative to the competitive bidding statutes. The City of Fort Worth has established various contracts for goods and services through the competitive bidding process. The City of Grapevine has an established interlocal agreement with Fort Worth and has participated in past contract solicitations. Sealed bids for this service were solicited by Fort Worth and opened on January 6, 2000. A contract was approved by the Fort Worth City Council on June 13, 2000 and as allowed by the original bid solicitation was renewed again on June 13, 2003. This will be the last option renewal for this contract. Prices are based on the Mont Belvieu Texas Average Posting Net Price for the day the propane is delivered, plus 7.5 cents per gallon for tanker and bobtail loads. The purpose of this resolution is to approve use of the contract and allow purchases to be made on an as needed basis. Contract purchases will not exceed the annual budgeted amount. Staff recommends approval. CD December 30, 2003 (1:04PM) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNATE TO PURCHASE LIQUID PETROLEUM GAS (PROPANE) THROUGH AN ESTABLISHED INTERLOCAL AGREEMENT WITH THE CITY OF FORT WORTH AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas is a local government in the State of Texas and as such is empowered by the Texas Local Government Code, Section 271.102 to enter into a cooperative purchasing program agreement with other qualified entities in the State of Texas; and WHEREAS, the City of Fort Worth, is a qualified entity as authorized by Section 271.101 of the Texas Local Government Code; and WHEREAS, the City of Grapevine, Texas, has an established Interlocal Agreement with the City of Fort Worth and wishes to utilize established contracts meeting all State of Texas bidding requirements for liquid petroleum gas (propane). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the above preamble are true and correct and are incorporated herein as if copied in their entirety. Section 2. That the City Council of the City of Grapevine authorizes the purchase of liquid petroleum gas (propane) on an as needed basis for a total cost not to exceed $30,000.00 annually. Section 3. That the City Manager, or his designee, is authorized to take all steps necessary to consummate the purchase of said liquid petroleum gas (propane). PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 6th day of January, 2004. ATTEST: