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HomeMy WebLinkAboutItem 09 - Diesel and Unleaded Fuel ITS MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 2 FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: APRIL 20, 2010 SUBJECT: APPROVAL OF AN ANNUAL CONTRACT FOR THE PURCHASE OF DIESEL AND UNLEADED FUEL THROUGH AN INTERLOCAL AGREEMENT WITH TARRANT COUNTY RECOMMENDATION: City Council to consider approval of an annual contract to Martin Eagle Oil Company, Inc. through an existing interlocal agreement with Tarrant County, for the purchase of diesel fuel and unleaded fuel on an as needed basis, not to exceed the budgeted amount for FY2010, $734,400.00. FUNDING SOURCE: Funding is available in accounts 100-14110-000-0 Inventory-Unleaded Fuel and 100- 4105-000-0 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 Tarrant County on October 3, 2009. Tarrant County took bids and awarded diesel and unleaded fuel contracts to Martin Eagle Oil Company, Inc. as primary contractor and Douglas Distributing Company as secondary contractor on April 6, 2010. (See attached paperwork). This contract includes five one-year renewal options. If approved this would be the initial contract 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 $2.251gallon for unleaded fuel and $2.171gallon for diesel fuel. The United States Government Energy Information Agency indicates the average for this region is $2.74/Gallon for unleaded fuel and $2.97/Gallon for diesel fuel. Currently, the City of Grapevine is spending $0.48 - $0.80/gallon less than the regional average. The copy of the Tarrant County bid tabulation is attached for review. April 15,2010(10:22AM) With 14 different public entities participating 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 Tarrant County to Martin Eagle Oil Company, Inc. as primary contractor and Douglas Distributing Company as secondary contractor for the purchase of diesel fuel and unleaded fuel on an as needed basis. GR April 15, 2010(10:22AM) °° '•. REFERENCE:14UMBER COMMISSIONERS COURT PAGE i OF g •• •�• COMMUNICATION DATE: 0410612010 SU13JECT: BID NO.2010-046 ANNUAL CONTRACT FOR FUELS - COUNTYWIDE- VARIOUS VENDORS-PER UNIT PRICE COMMUSSIONERS COURT ACTION RE VESTED: It is requested that the Commissioners Court award Bid No. 2010-046, Annual Contract for Fuels, Countywide, to the following vendors at the per unit price: Primary Martin Eagle Oil Company Secondary Douglass Distributing Co. BACKGROUND: Notice of the County's intent to bid was advertised in local newspapers, as required by State statute, and posted on the Internet, the American Indian Chamber of Commerce; the Fort 'Worth Hispanic Chamber of Commerce, the Fort Worth Metropolitan Black Chamber of Commence, and the Tarrant County Asian American Chamber of Commerce. Forty-seven (47) vendors were contacted and requested to participate in this bid process. All documents pertaining to this bid were posted on the Tarrant County website and were downloaded by interested bidders. Ten (10) bids were received. Bids were evaluated by Transportation Services, the four (4) Maintenance Precincts, and Purchasing representatives. Two (2) vendors attended the Pre-Bid Conference held on February 18, 2010. Award recommendations are to the overall low bids meeting specifications, Fourteen (14) other governmental entities will utilize the contract resulting from this bird, which represents a combined total of 5.4 million gallons of fuel. Those fourteen (14) governmental entities are the Cities of Denton, DeSoto, Duncanville, Euless, Grand Prairie, Grapevine, Hurst, Keller, Lancaster, Lewisville, North Richland Hills, Plano, Richardson, and Southlake. The term of the contract is twelve (12) months with five (5) options for renewal periods of twelve (12) months each. DISPOSITION BY COMMISSIONERS COURT ❑ APPROVED ❑ OTHER Ideserite] SUBMITTED BY: Purchasing PREPARED BY: Tire ones 7= COMMISSIONERS COURT COMMUNICATION REFERENCE NUMBER: RATE: 04/06/2010 PAGE 2 OF 9 Therefore, it is the joint recommendation of Transportation Services, the four (4) Maintenance Precincts, and Purchasing that Bid No. 2010-045, Annual Contract for Fuels, Countywide, be awarded to the vendors listed above at the per unit price. FISCAL rMPACT: The cost associated with-this action is unknown at this time. This action simply sets the price for the item/commodity. Expenses for last year were approximately $1,183,225. Orders are on an as needed basis. C c a cA�s a C3 c° U! 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