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HomeMy WebLinkAboutItem 12 - Diesal and Unleaded FuelITEM- 1.2- MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER N MEETING DATE: APRIL 5, 2011 SUBJECT: APPROVAL OF AN ANNUAL CONTRACT RENEWAL 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 renewal to Martin Eagle Oil Company, lnc. 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 FY2011, $734,400. FUNDING SOURCE: Funding is available in account 100- 14110 -000 -0 Inventory- Unleaded Fuel and 100- 14105 -000 -0 Inventory- Diesel Fuel. BACKGROUND: This request is to approve a contract for the purchase of unleaded and diesel 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. The interlocal and cooperative purchasing agreement allows each City to purchase from existing contracts and satisfies all bidding requirements under the Local Government Code. 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 and also awarded a contract renewal on February 1, 2011. This contract included five one -year renewal options. If approved this would be for the first renewal contract period assuring that the prices will remain firm through April 6, 2012. Pricing is based on a set contract amount above the OPIS benchmark price for fuel. With a number of 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 March 30, 2011 (10:25AM) that the cooperative agencies will continue to receive deliveries. Martin Eagle Oil Company, Inc has provided this service in the past with satisfactory results and has agreed to renew the contract with no pricing changes Staff recommends approving an award for a contract renewal under the interlocai 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 March 30, 2011 (10:25AM) C to CL D tm O U U Z O O do d w d CL E LC3 O Cl Ci Z Q © C71 cc GL! W LL. 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