HomeMy WebLinkAboutItem 11 - FuelsMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: APRIL 7, 2020
SUBJECT: APPROVAL TO RENEW ANNUAL CONTRACTS FOR VARIOUS FUELS
RECOMMENDATION: City Council to consider the renewal of annual contracts for various fuels
with primary vendor, US Oil, formerly Martin Eagle Oil Company, and
secondary vendor, Douglas Distributing, for the Public Works Fleet
Services Department.
FUNDING SOURCE: Funds are available in the inventory -unleaded fuel, inventory -diesel fuel,
inventory E-85 and golf fuel budgets (100-14110-000-000), (100-14105-
000-000), (100-14114-000-000) and (210-44285-340-002) for an annual
estimated amount of $800,000.
BACKGROUND: The purpose of this contract is to establish fixed annual pricing for various
fuels to be ordered on an as -needed basis. Approximately 18 public
entities will utilize this contract managed by Tarrant County. The actual
price of the fuel purchased is reset as the City purchases which is typically
every two weeks.
The Public Works Department and Purchasing staff 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.
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 solicited bids for fuel. Based on evaluations by the Tarrant
County, Texas Transportation Services Department, Maintenance
Precincts and Purchasing, US Oil, formerly Martin Eagle Oil Company,
was awarded the primary contract and Douglas Distributing was awarded
the secondary contract. The contracts were for an initial one-year period
with three, one-year renewal options. If approved, this will be for the
second renewal available.
Staff recommends approval.