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HomeMy WebLinkAboutItem 22 - FuelsMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: APRIL 17, 2018 SUBJECT: APPROVAL OF A RESOLUTION FOR ANNUAL CONTRACTS FOR VARIOUS FUELS RECOMMENDATION: City Council to consider a resolution authorizing annual contracts for various fuels for the Public Works Fleet Services Department with primary vendor Martin Eagle Oil Company and secondary vendor Douglas Distributing. FUNDING SOURCE: Funds for this purchase are available in accounts 100-14110-000-0 (Inventory -Unleaded Fuel) 100-14105-000-0 (Inventory -Diesel Fuel) and 100-14114-000-0 (Inventory E-85 Fuel) (210-44285-340-2 Golf Fuel) for an annual estimated amount of $850,000. BACKGROUND: The purpose of this contract is to establish fixed annual pricing for various fuels to be ordered on an as -needed basis. The Public Works Department and Purchasing reviewed the contract for specification compliance and pricing and determined that the contracts would provide the best service and pricing for meeting the needs of the City. By awarding primary and secondary contracts, this assures product availability. Approximately 18 public entities will utilize this contract managed by Tarrant County. Purchases will be made in accordance with an existing Interlocal Cooperative Agreement with Tarrant County, Texas as allowed by Texas Local Government Code, Section 271 and Texas Government Code, Section 791. Tarrant County, Texas solicited bids for an annual contract for fuel. Five bids and three no bids were submitted. Based on evaluations by the Tarrant County Texas Transportation Services Department, Maintenance Precincts and Purchasing, Martin Eagle Oil Company was awarded the primary contract and Douglas Distributing was awarded the secondary contract on February 27, 2018. The contracts are for an initial one-year period with three, one-year renewal options. Staff recommends approval. PH/LW RESOLUTION NO. 2018-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO CONTRACT FOR VARIOUS FUELS THROUGH AN ESTABLISHED INTERLOCAL PARTICIPATION 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, Chapter 271 and Texas Government Code, Chapter 791 to enter into a cooperative purchasing program agreement with other qualified entities in the State of Texas; and WHEREAS, Tarrant County, Texas is a qualified entity as authorized by Texas Local Government Code, Chapter 271 and Texas Government Code, Chapter 791; and WHEREAS, the City of Grapevine, Texas has established an interlocal agreement with Tarrant County, Texas and wishes to utilize established contracts meeting all State of Texas bidding requirements; and WHEREAS, Tarrant County, Texas has established a primary contract with Martin Eagle Oil Company and a secondary contract with Douglas Distributing, contract No. 2018-057, Annual Contract for Fuel; and WHEREAS, the City of Grapevine, Texas has a need to purchase various fuels for the City; and WHEREAS, all constitutional and statutory prerequisites for the approval of this resolution have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this resolution to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City Council of the City of Grapevine authorizes the contracts for various fuels with Martin Eagle Oil Company and Douglas Distributing through an interlocal cooperative purchasing agreement with Tarrant County, Texas in an annual estimated amount of $850.000. Section 3. That the City Manager or his designee is authorized to take all steps necessary to consummate the purchase of various fuels. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 17th day of April, 2018. ATTEST: APPROVED: William D. Tate Mayor Tara Brooks City Secretary APPROVED AS TO FORM: City Attorney Resolution No. 2018-038 2