HomeMy WebLinkAboutItem 19 - FuelsMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: APRIL 19, 2022
SUBJECT: RENEW ANNUAL CONTRACTS FOR VARIOUS FUELS
RECOMMENDATION: City Council to consider an annual contracts for various fuels with primary
vendor Jack Ray Oil Company and secondary vendor Douglas
Distributing for the Public Works Fleet Services Department.
FUNDING SOURCE: Funds are available in the General Fund for fuel purchases for an annual
estimated amount of $900,000.
BACKGROUND: The purpose of this contract is to establish fixed annual pricing for various
fuels to be ordered on an as -needed basis. The Public Works Department
and Purchasing 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. Approximately 18
public entities will utilize this contract managed by Tarrant County. Given
recent fuel prices, the proposed contract is for $900,000, $300,000 more
than the City budgeted in FY 2022. The previous fuel contract has
expired. This is our first year of the new agreement.
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 an annual contract for fuel. Based on
evaluations by the Tarrant County Transportation Services Department,
Maintenance Precincts and Purchasing, Jack Ray Oil Company was
awarded the primary contract and Douglas Distributing was awarded the
secondary contract. The contracts are for an initial one-year period with
three, one-year renewal options.
Staff recommends approval.
PH/LW