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HomeMy WebLinkAboutItem 17 - FuelsMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: MARCH 21, 2023 SUBJECT: APPROVAL FOR THE RENEWAL OF AN ANNUAL CONTRACT FOR VARIOUS FUELS RECOMMENDATION: City Council to consider approval for the renewal of an annual contract for the purchase of various fuels with Jack Ray Oil Company for the Public Works Fleet Services Department. FUNDING SOURCE: Funds are available in the General Fund (Inventory) 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. 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, Texas solicited bids last year for fuel. Based on evaluations by the Tarrant County, Texas Transportation Services Department, Maintenance Precincts and Purchasing, Jack Ray Oil Company was awarded the primary contract. The contract was for an initial one-year period with three, one-year renewal options. If approved, this will be for the first renewal available. Staff recommends approval. RB/LW