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MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER \
MEETING DATE: FEBRUARY 7, 2012
SUBJECT: APPROVAL TO CANCEL A CURRENT ANNUAL
CONTRACT AND AWARD AN ANNUAL CONTRACT TO
THE SECONDARY VENDOR FOR THE PURCHASE OF
DIESEL, UNLEADED AND E85 FUEL THROUGH AN
INTERLOCAL AGREEMENT WITH TARRANT COUNTY
RECOMMENDATION:
City Council to consider cancelation of a current annual contract with Martin Eagle Oil
Company and award an annual contract to the secondary vendor, Douglas Distributing
Company, through an interlocal agreement with Tarrant County.
FUNDING SOURCE:
Funds are budgeted in 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 cost of$980,000.
BACKGROUND:
This request is to cancel an annual contract for the purchase of Unleaded, Diesel, and
E-85 Fuel with Martin Eagle Oil Company and award the contract to the secondary
vendor Douglas Distributing Company. 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 on April 6, 2010. Tarrant County
also awarded a contract renewal on February 1, 2011 that continues through April 6,
2012. City of Grapevine City Council also approved the renewal on April 5, 2011. (Bid
tabulation attached.)
Due to the non-renewal of ethanol tax credit for gasoline, Martin Eagle Oil Company has
decided to terminate the current contract as per the terms and conditions of the Tarrant
County Bid 2010-046 effective January 27, 2012. Tarrant County Commissioners Court
has accepted the termination of this contract and awarded a primary contract to the
secondary vendor Douglas Distributing Company for the remaining renewal period
ending on April 6, 2012.
Staff recommends approval
GR