HomeMy WebLinkAboutItem 13 - Diesel Fuel MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE ITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGE tehr
MEETING DATE: MARCH 24, 2009
SUBJECT: APPROVAL OF AN ANNUAL CONTRACT FOR THE
PURCHASE OF DIESEL FUEL THROUGH AN INTER-LOCAL
AGREEMENT WITH THE CITY OF FORT WORTH
RECOMMENDATION:
City Council to consider approval of a resolution authorizing an annual contract to Martin
Eagle Oil Company, Inc. through an existing interlocal agreement with the City of Fort
Worth, for the purchase of diesel fuel on an as needed basis, not to exceed the
budgeted amount for FY2009 $410,000.
FUNDING SOURCE:
Funds are available in 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 Martin Eagle Oil Company,
Inc. as primary contractor for diesel fuel on March 4, 2008. This contract includes five,
one-year renewal options. If approved, this would be the first renewal option period.
Pricing is based on a set contract amount above the OPIS benchmark price for fuel. The
base price is a fixed price for the contract period. The benchmark price may change
depending on the price charged to fuel distributors. The price that the City of Grapevine
is currently paying is $1.58/gallon for diesel fuel. The United States Government Energy
Information Agency indicates the average for this region is $2.07/gallon. Currently, the
City of Grapevine is spending $.49/gallon less than the regional average. The copy of
the Fort Worth bid tabulation is attached for review.
March 19,2009(11:11AM)
With a number of different public entities participating (120) in the contract, including
Tarrant County, the collected volume of fuel has helped secure a lower cost for the base
price than in previous years. In addition, in case of fuel shortages, the contract
guarantees that the cooperative agencies will continue to receive deliveries. Martin
Eagle Oil Company, Inc. has provided this service in the past with satisfactory results.
Staff recommends approving an award under the interlocal agreement with the City of
Fort Worth to Martin Eagle Oil Company, Inc. for diesel fuel.
GR
March 19,2009(11:11AM)
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02/03/2009 11 00 martin Eagle Oil (FAX)940 382 9342 P.0021003
City of Ft Worth
Annual Renewal Agreement
Response Form
02/02/2009
Re: Modification of Current Contract
DIESEL FUEL-PRIMARY VENDOR
Current Contract#: 08-0008
Current Purchase Order Number:TYPA-08.00047278
• WC#: P-10746
By the affixed signatures below,the City of Fort Worth and vendor agree to renew the existing
contract with the same terms and conditions for an additional(12)-month period,with the following
remaining options. .
3 options remaining
From 332009 23:59:00 To: 3/8/2010 23:59 59
Yes.Renew this agreement D Do Not Renew this agreement
l /
I' , iy ) •_ , i' ).
Ph flip (Corky) Childers m- A440"" Karte,Kevin
MARTIN EAGLE OIL COMPANY INC , Buyer
(940)383-2351 Ext 224
FAX:9403829342 "-�
Jack Dale,C.P.M,CPPB
Purchasing Manager
Al
RESOLUTION NO. \ 770,
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE
CITY MANAGER OR THE CITY MANAGER'S
DESIGNEE TO PURCHASE DIESEL FUEL THROUGH
AN ESTABLISHED INTERLOCAL AGREEMENT 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, Texas is a qualified entity as authorized by
Section 271.102 of the Texas Local Government Code; and
WHEREAS, the City of Grapevine, Texas, has established an Interlocal Agreement
with the City of Fort Worth, Texas and wishes to utilize an established contract for diesel
fuel that has met all State of Texas bidding requirements and listed in the attachment to
this resolution.
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 participation
in the contract established by the City of Fort Worth, Texas.
Section 3. That the City Manager, or his designee, is authorized to take all steps
necessary to establish participation in the contract for diesel fuel.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 24th day of March, 2009.
APPROVED:
ATTEST:
APPROVED AS TO FORM:
RES. NO. 2