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HomeMy WebLinkAboutItem 13 - Unleaded Fuel MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER b\ MEETING DATE: DECEMBER 15, 2009 SUBJECT: APPROVAL OF AN ANNUAL CONTRACT FOR THE PURCHASE OF REGULAR UNLEADED FUEL THROUGH AN INTERLOCAL AGREEMENT WITH THE CITY OF FORT WORTH RECOMMENDATION: City Council to consider approval of an annual contract to Martin Eagle Oil Company, Inc. through an existing interlocal agreement with the City of Ft. Worth, for the purchase of unleaded fuel on an as-needed basis, not to exceed the budgeted amount for FY2010 $420,000. FUNDING SOURCE: Funds are available in account 100-14110-000-0 Inventory-Unleaded Fuel. BACKGROUND: This procurement will be under the Interlocal Cooperation Act, Chapter 791, Texas Local Government Code that states that any entity participating through an interlocal agreement satisfies any bidding requirements required under State law. Council approved the interlocal agreement and participation with the City of Fort Worth for fuel on January 19, 1999. The City of Fort Worth took bids and awarded contracts to Martin Eagle Oil Company, Inc. as primary contractor for regular unleaded fuel on 11/10/2009 (see attached paperwork). This contract includes four, one-year renewal options. Pricing is based on a set contract amount above the OPIS benchmark price for fuel. A number of different public entities are participating in this bid including Tarrant County. Martin Eagle Oil Company, Inc. has provided this service in the past, through a previously expired interlocal contract with the City of Fort Worth, with satisfactory results. Staff recommends approving an award under the interlocal agreement with the City of Fort Worth to Martin Eagle Oil Company, Inc. for regular unleaded fuel. GR December 10,2009(8:17AM) FORT WORTH NOTICE OF INTENT TO AWARD MOTOR FUELS AND AVIATION FUELS RFP NO.09-0012 The City of Fort Worth review of the proposals received in response to RFP No. 09-0012 Motor and Aviation Fuels has been completed. The recommendation for contract award is as follows: CITY OF FORT WORTH AWARD Truman Arnold Companies,Inc., is recommended for contract award as the Primary Supplier for E85 & Reformulated Gasoline. Furthermore,it is recommended that Martin Eagle Oil Company be awarded as a Secondary Supplier for E85&Reformulated Gasoline. Martin Eagle Oil Company is recommended for contract award as the Primary Supplier for ULSD (LED) 15ppm Diesel,#1,#2, 70/30 blend,and(SME and/or BQ9000)Biodiesel blends. Furthermore,it is recommended that Truman Arnold Companies,Inc.,be awarded as a Secondary Supplier for ULSD (LED) 15ppm Diesel,#1,#2, 70/30 blend,and(SME and/or BQ9000)Biodiesel blends. CITY OF FORT WORTH NATIONAL AWARD City of Fort Worth, in partnership with National IPA,recommends a dual National award to Truman Arnold Companies,Inc.,and Martin Eagle Oil Company for all Motor Fuels(unleaded and diesel,all varieties)requested in the RFP and any future fuels added by addenda. Martin Eagle Oil Company is recommended for an award as a supplier for the state of Texas only,and Truman Arnold Companies Inc is awarded as a supplier for all 48 contiguous United States. SUPPLIERS TRUMAN ARNOLD COMPANIES,INC. 701 S.ROBINSON ROAD TEXARKANA,TEXAS 75501 MARTIN EAGLE OIL COMPANY 2700 JAMES STREET DENTON,TEXAS 76205 No award will be made for Aviation Fuel. Regards, Jack Dale,C.P.M.,CPPB Purchasing Manager FINANCIAL MANAGEMENT SERVICES DEPARTMENT PURCHASING DIVISION THE: CITY OF FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH, TEXAS 76102 817-392-8360 * FAX 817-392-8440 !t Printed on recycled paper