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HomeMy WebLinkAboutItem 06 - Fuelire 0 , 6 NUMMEMOM& MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER ,& MEETING DATE: APRIL 1, 2003 SUBJECT: APPROVAL OF AN ANNUAL CONTRACT FOR THE PURCHASE OF MID -GRADE UNLEADED AND DIESEL FUEL THROUGH AN INTERLOCAL AGREEMENT WITH THE CITY OF FORT WORTH RECOMMENDATION: City Council to consider approval of annual contract to Superior Fuels and Lubricants for mid -grade unleaded fuel and to Reeder Distributors for diesel fuel through an existing interlocal agreement with the City of Fort Worth. FUNDING: Account 100-14110-000-0 Inventory -Unleaded Fuel Account 100-14105-000-0 Inventory -Diesel Fuel BACKGROUND: This procurement will be under the Interlocal Cooperation Act, Chapter 791, Texas Local Government Code that states that any entity participating through an interlocal agreement satisfies any bidding requirements required under State law. Council approved the interlocal agreement and participation with the City of Fort Worth for fuel on January 19, 1999. The City of Fort Worth took bids and awarded contracts to Superior Fuels and Lubricants for mid -grade unleaded and to Reeder Distributors for diesel fuel on December 17, 2002. Pricing is based on a set contract amount above the Oil Price Information Service (OPTS) benchmark price for fuel. The contracts are for a one-year period with options to renew for four additional one-year periods. A number of different public entities participated in the bid, including Tarrant County. A copy of the Fort Worth Council memo and bid tabulation is attached for review. Staff recommends approving an award to Superior Fuels and Lubricants for mid -grade unleaded fuel and to Reeder Distributors for diesel fuel. CD March 25, 2003 (3:10PM) N 0 FEB -27-2003 THU 10:37 All FURCHAS I NG FAX NO. 817 871 8171 P. 03 City of Fort Worth, Texas 44naxplor and couneol Am 1 tion --1- PlLjmtftr< LOG NAME PAGE 12/17/42 **P.972a 0002-0288 of 2 suaJcr PURCHASE AGREEMENT FOR GASOLINE AND DIESEL FUEL WITH PRIMARY AND SI✓CONPARY VENDORS FOR THE CITY OF FORT WORTH AND VARIOUS TARRANT COUNTY GOVERNMENTAL PENTITIES RECOMMENDATION: It is recommended that the City Council: 1. Authorize a purchase agreement for gasoline and diesel fuel witn primary and secondary vendors for the City of Fort 'Worth and Interl9Gal Agreements with Various Tarrant County governmental entities. Prices will be based on the overall low bid of the Dallas Metro Texas OPTS (tail Puce Information Service) Retrosat Net Price per gallon for the day the fuel is delivered and W0 Street Journal, Cash Prices, Fats and Oils (for bio -diesel fuel only) each Monday, Payment is due 30 days from the date the invoice is received. The Cita/ takes ownership at the City's storage tank and freight is not charged; and < Authorize the primary award for gasoline to Superior Fuels and Lubricants and the secondary award to Reeder Distributers; and for diesel, the primary award to Reeder Distributors and the secondary award to Lucky Lady. See the attached bid tabulation for pricing; and 3- Authorize the City Manager to eater into Interlocal Agreements with various Tarrant County governmental entitles, as requested, based on the same prices, terms and conditions of the► original agreement; and 4. Authorize this agreement to begin December 17, 2002, and expire December 16, 2043, with options to renew for four additional one-year periods. DISCUSSION: City departments and various Tarrant County governmental entities will use this agreement to obtain gasoline and diesel fuel to supply and operate gasoline and diesel -powered equipment, No guarantee was made that a specific amount of fuel would be purchased, During the previous year, the City purchased about 2,'t!0,000 gallons at a cost of $2,014,000, and various local governmental entities purchased about 1,900,000 gallons at a east of$1,805,00a. Gasoline and diesel fuel were bid as an Interlocal Agreement to develop and encourage cooperative purchasing efforts to reduce the cost of gasoline and diesel fuel to the City and other Tarrant County governmental entities. The following entities have purchased fuel utilizing the current Interlocal Agreement: the City of Arlington, the City of Grapevine, Tarrant County, and Tarrant County College. . Awarding a second" agreem4snt will ensure an uninterrupted supply of all fuels to the City and ether governmental entities should the primary vendor fail to provide fuel in instances such as fuel shortages and curtailments. FEB -27-2003 THU 10:371 AM PURCHASING FAX NO. 817 871 8171 P. 04 Chv of Fort Worth, Texas A� OVa"or and C an R DATE I REFERZ:,Ncc NUM5ER '--T—Loc"NAM5PAGE 12117/02 1 **P �9725 1 . 0002 0288 2 of 2 PURCHASE AGREEMENT FOR GASOLINE AND DIESEL FUEL WITH PRWARY AND SECONDARY VENDORS FOR THE CITY OF 'FORT WORTH AN0 VARIOUS TARRANT COUNTY GOVERNMENTAL ENTiTIES i BID ADVERTISEMENT - This bid was advertised in the Commercial Recorder on October 9 and 16, 2002- The Purchasing Division solicited IS vendors from the purchasing system database and 10. from the DemandStar.corn plan holders. Seven vendors responded with a bid, two of which did not quote a complete bid of one or more categories as required in the specifications, BID TABULATION - See the attached bid talbullation. M/WSE - A waiver of the goal for f,64AVBF subcontracting require -men's was requested by the Purchasing Division and approved by the MANBE Office because the purchase of goods Is from sources where subcontracting or supplier opportunities are negligible. RENENVAL OPTIONS - This agreement may be renewed for up to four Auccessive one-year terms at the c;1ty'soption. —1his action does not require specill-ic City Council approval Oovided the City Oout-;4011 hai applopriatedd sufficient funds to satisfy the City's obligations during the renewal term. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available as in the current operating budget, as appropriated, of the Equipment Services Fund. CB:k .SON/02-0288/KDK SubiWttad for Olffimbyl chiles Boswell 6!83 TxmKeyes $517 Robat Combs 1357 rUND I ACCOUNT I C�&Mk I A.NIOLNT I . CITY SWkETA.RY,' El FEB-27-2CO3 THU '10:37 AM PURCHASING FAX NO. 817 871 8171 P, 02 Li a r mQf1 j,may "i 47 C6 '61 Igo C! mi PV M r r 40 Q :;Iill t m 9L C5 CL N czf + V al a1 ji to 1 !+21 +Y ci al 0. 4 :511 75 C3 cc� CS LLJ OF CV N ar CV a t ul C3 I�lz z tu.Sk 9t 2 0 a G)0 R - 6- -5! ,. in 0 c Q. 0- in Lij tai LU r: ir Je �d Q) Nos �Ivj A 65 Li DEC -20-2002 i=Ri 09!43 AM FtlRCHASIf4G FA"A' „rJ. vii 871 8440 F. 01/0It W W t,'tiy of Foil Worth, Texas tvirlaffor stool 0.0—u-neft, DATE LOG NAME PAGE fi 2j'f 7/02 "P-9 7 25 1 10002-028$ of 2 sui �cr k FURCi-iASE AGREEMENT FOP, GASOLINE AND DIESEL FUEL. WI H PRIINIARY fihvD iOPSECONDARY VENDORS FOR CTY iFW"t Q- TARRANT COUNTY GOVERNMENTAL irk TIM ES RECQMMEN2 T'LCN: It is recommended that the City Cvunct : 1. Authorize a purchase agreement for gasoiine and diesel fuel with, primary arld Secondary veno•s for the City of- Fort Worth and Irt�r_ cdi Agreements- w•tthtiarwa 1re�-��.+ rtcvmty governmental enrifies_ Prices will be Rased on the overall lcw bid of 4,114 DaftS Rdatro Texas OPS IPI Pdoe, {4 N Lamric ina s�,8 Ray the is,�ai is delivered and Wall Street � sf�r�:�C" t�4.''l' Price 4E.�i �L"4' t �G41v,t ,ut- N�+ journal, Gash Frices, Fats aid 4: its (tor bio-dissei f=eel only,% ems, %4onday. Payment is due 30 days from Gne- date the` i ivvi�sc iS received. The City t o oxgpa=s in at the itl�i's storage tank and r ft'eigil is not charged; and 2. Authorize the p-,irn r awa=rd for gwsoline to Superior Fuels and Lubricants and the s=econdary award tto o, A. p ru$tatu,t„rr• �rtri for tiia�4 the pri?t?ary avuerd tQ RSBde Di�ibutvrs and the secondary o r tcc .tw r vwW r.....,.ri f. t ,. aY cru to Luck' Lady. See the attached bid tabulation for pricing; and S. Authorize the Cfty Manager to enter into Interlocal Agreements with varfOus Tarrant County go emrr,ental anti#i , as recuested. based on the same prices, terms and conditions of the original agreement; and 4, Authorize this agreem=ent to begim December 17, 2002, and expire December 16, 2003, wiin options to renew for four additional ane -year periods. City departments and vaftus Tarrant County governmental entities wilt use this agrsrmeAt to �bwiri gasoline and diesel fuel to supply and cerate gasoline and atese;--pc�t,+;et E eggs+prrei;+►. ".c g+�:: s ^tee was made that a specific amount of fuel would be purchased. During the praVlous rear, the City purchased about 2,120,000 gallons at a cost trfZ, u i,iivG, and vanrcus lo; 4„ g:gin m.—ental ei,tit' purchased abut 1,` 00,000 gallons at a cost Of � 1,805,000. Gasoline and diesel fuel were bid as an interlocal Agrsement to devel-op and encourage cooperative purcfiasiN e€tofs 'to reduce 4i e cost trf gaasOly a and t:iesel fs„ai Ertl the City and other Tarrant County governmental entities. The folie ing entities have r+urchas€d fuel utilizing the current lnterfoCal itgf'f,'rtiv�t'et u _ City V t . ii_4,,%4 i, times f-•ty of r`rat-levine, Tarrant County, and Tarrant County College. wiry a ugr Ser;E ,;,;ilt ensure an uninterruoted su.poly of all fuois to the City and tither yo,.=mme ":# al entitfes should tho primary vendor fail to provide fuel in. instances Sikh as fuel shortages an rs:rtaiIr;;anfe VLC-20-2-002 Fni M 44 A)f i1UroVHAUINg FAX NO, 817 87; 0440 °, 02r`04 'I - or FO Ft orFOFt Wo ih Texas A%KNAI%W AUSIAJ �� lft il�j�lt�l�irlryts�r ■p nA r� REFI-- K NC -E t+,ci MEt E`R 1 �vAME pp�� - --� 12/17/02 **P-972- 0002-0288 2 of 2 �L10JECT PURCHASE AGREEMENT Fr5'5P GASOLINE ND DIESEL cl, tEL WITH PRIMARY AND —'h—THE CITY OF FORT WORTH AND VARIOUS SEveyt qr y VENDORS IrG� TARJR NT 0 UNTY GOVERNMENTAL ENTITIES A;L Arvo=pTF GAA -14. ...;- bf `2:`µi 4d.J� µ'S�d li w3?e f`C,+mmarnlµl Rarnrdar on flrioirgr tj and 16, 2002 The Purchasing Division solicited 15 vendors f*crt3 thercan,sxem data�,esen�f 1 m fro the nemanrt Egr rnm plan Yln(CIcuD ,ReVen yerldorA re-sporldeed With abi�{; two of uhf did l riot qt to completo bid of ono or mors categories as requires! in the specifcation9, 810 TABULATION - Sea the attached bid tabulation. MWBE - A waiver of the goal for MAIVEP subcontracting requirements was reque*sted by the Purchasing Division and approved by the MMBE Office because the purchase of goods is from sourms where subcontracting or supplier opportunities are negligible. RENEWAL OPTIONS - This agreement may be renewed for up to four successive ont-,year terms at the City's option. This action does not require specific City Council approvalprovided the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewat term. FISCAL lNE013MAT1ON/CERTlt=iCATION: The Finance Director certifies that funds are available as in the current operating budget, as appropriated, of the Equipment Services F=und. CB:kt ciCt114 u2-u28Q`/KDK submitti'd for City M"RaWl off= br. QW14 s Doswell 6133 'run iCy Ca Contad. l Robert C*mbs 8357 RIND I ACCOUNT 1 CENTER SECRETARY t l L, FEB -27-2003 THU 10:36 AM PURCHASING FAX NO, 817 871 8171 P. 01 171 +1 Gill nj © }� al:I 'i, -1 F J�-' Ito ups 'w a, .1 C+ cx ci c= mCa 4= CD fa un LO C5 gS al f9 cn 'A a ata 3 A g C—m 0 'r LLi 0 0 LLJ 4" 0 9 -ab -rm ul a 0 tm tm �5 �5 OzQi,�if w iii t. A ui vo 171 m L71 8 IDEIC-20-20VOC2 FRF 09:44t AM PURCC HAS I NG FAX NO, 817 fl 84400 , A /0,1 1It/ It j5i=w 2.1 1 ma , O ?1RIII iR Zt 9 g] Sj jj *4 29 tl AKJ 4-1 AQZL ta si gig 101 r, ZI ?<I a 11 Fj A oil 2w, U R a R vm 4m 3 S a -slog Ell + +t j 41 j +1 +1 +1 Sal of ra 18 2 9 C), TstC, Wc3, vq Vq q; I%r UL fn v1 C4 75, 'eh 8 w t2 2 U - it LL) - t !- J!" E, c,