HomeMy WebLinkAboutItem 08 - Fuel i r EIII
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: APRIL 17, 2012
SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT FOR
THE PURCHASE OF DIESEL, UNLEADED AND E85 FUEL
THROUGH AN INTERLOCAL AGREEMENT WITH
TARRANT COUNTY
RECOMMENDATION:
City Council to consider approving the renewal of an annual contract for purchasing
diesel, unleaded and E85 fuel from Douglas Distributing Company through an interlocal
agreement with Tarrant County.
FUNDING SOURCE:
Funds are budgeted ire accounts 100-14110-000-0 (Inventory-Unleaded Fuel) 100-
14105-000-0 (Inventory-Diesel Fuel) and 100-14114-000 (Inventory E-85 Fuel) for the
total estimated cost of$980,000.
BACKGROUND:
This request is to renew an annual contract for the purchase of Unleaded, Diesel, and
E-85 Fuel. Purchases will be made as required and in accordance with an existing
interlocal agreement with Tarrant County as allowed by Texas Local Government
Code, Section 271.102. Council approved the interlocal agreement and participation
with Tarrant County on October 3, 2010.
Tarrant County took bids and awarded diesel and unleaded fuel contracts that included
five, one-year renewals to Martin Eagle Oil Company, Inc. as primary contractor and
Douglas Distributing Company as secondary contractor. Due to the non-renewal of
ethanol tax credit for gasoline, Martin Eagle Oil Company terminated the contract as
per the terms and conditions of the Tarrant County Bid 2010-046 in January 2012 and
awarded Douglas Distributing Company as the primary contractor of the contract
through the remaining renewal period ending April 6, 2012. If approved, this would be
the second renewal period.
Douglas Distributing Company is currently providing this service with satisfactory
results and has agreed to renew the contract for another year with no increases in
pricing.
Staff recommends approval
4/12/2012 2:34:10 PM
r •yes REFERENCE NUMBER
COMMISSIONERS COURT PAOB 1 of lQ 3
•'�•� COMNRMCATION
DATE- 2/28/2012
SUBJECT: BID NO. 2010-046-ANNUAL CONTRACT FOR FUELS-COUNTYWIDE-
DOUGLASS DISTRIBUTING COMPANY-EXERCISE SECOND OPTION
FOR RENEWAL AT SAME FIRM FIXED PRICES
*** CONSENT AGENDA ***
COMMISSIONERS COURT ACTION REQUESTED:
It is requested that the Commissioners Court approve renewal of Bid No. 2010-046, Annual Contract
for Fuels, for the second optional twelve(12)month period at the same firm fixed prices.
BACKGROUND:
On January 17, 2012, the Commissioners Court, through Court Order #112032, approved secondary,
vendor, Douglass Distributing Company as primary vendor of Bid No. 2010-046, Annual Contract for
Fuels.
The awards were based upon low bid per item and contained an option to renew for five(5) additional
twelve(12)month periods at the same prices.
The vendor notified Purchasing in writing that their prices will remain firm through April 6, 2013.
Transportation Services and the four(4) Maintenance Precincts notified Purchasing in writing that they
are pleased with the vendor,
Therefore, it is the joint recommendation, of Transportation Services, the four (4) Maintenance
Precincts, and Purchasing that the Commissioners Court approve the renewal of Bid No. 2010-046,
Annual Contract for Fuels, for another twelve (12)month period,
FISCAL IMPACT:
The costs associated with this action are unknown at this time. The gallons of fuel purchased will
determine the County's future cost. Orders placed are on an as-needed basis. Tarrant County and
twenty-three (23)entities usage is attached.
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1BMITTED BY: Purchssing PREPARED BY: Tim Jones R `
APPROVED BY:
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