HomeMy WebLinkAboutItem 05 - Liquied Petroleum GasITEM 0 5
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER 41,11
MEETING DATE: JANUARY 6, 2004
SUBJECT: APPROVAL OF A RESOLUTION TO ESTABLISH AN ANNUAL
CONTRACT WITH FERRELL GAS COMPANY FOR LIQUID
PETROLEUM GAS (PROPANE) THROUGH AN INTERLOCAL
AGREEMENT WITH THE CITY OF FORT WORTH
RECOMMENDATION:
City Council to consider approval of a resolution to establish an annual contract with
Ferrell Gas Company through an existing interlocal agreement with the City of Fort
Worth. The annual amount budgeted for this service is $30,000.
FUNDING.
Funds are available in the Fleet Inventory Account 100-14112.
BACKGROUND:
This procurement will be made in accordance with Texas Local Government Code,
Chapter 271.102 which authorizes political subdivisions to contract with each other for
governmental functions such as the purchase of goods and/or services. A local
government that purchases goods or services under this subchapter satisfies any State
law relative to the competitive bidding statutes.
The City of Fort Worth has established various contracts for goods and services through
the competitive bidding process. The City of Grapevine has an established interlocal
agreement with Fort Worth and has participated in past contract solicitations. Sealed
bids for this service were solicited by Fort Worth and opened on January 6, 2000. A
contract was approved by the Fort Worth City Council on June 13, 2000 and as allowed
by the original bid solicitation was renewed again on June 13, 2003. This will be the last
option renewal for this contract. Prices are based on the Mont Belvieu Texas Average
Posting Net Price for the day the propane is delivered, plus 7.5 cents per gallon for
tanker and bobtail loads.
The purpose of this resolution is to approve use of the contract and allow purchases to
be made on an as needed basis. Contract purchases will not exceed the annual
budgeted amount.
Staff recommends approval.
CD
December 30, 2003 (1:04PM)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER
OR THE CITY MANAGER'S DESIGNATE TO PURCHASE
LIQUID PETROLEUM GAS (PROPANE) THROUGH AN
ESTABLISHED INTERLOCAL AGREEMENT WITH THE CITY
OF FORT WORTH AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas is a local government in the State of
Texas and as such is empowered by the Texas Local Government Code, Section 271.102
to enter into a cooperative purchasing program agreement with other qualified entities in
the State of Texas; and
WHEREAS, the City of Fort Worth, is a qualified entity as authorized by Section
271.101 of the Texas Local Government Code; and
WHEREAS, the City of Grapevine, Texas, has an established Interlocal Agreement
with the City of Fort Worth and wishes to utilize established contracts meeting all State of
Texas bidding requirements for liquid petroleum gas (propane).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct and
are incorporated herein as if copied in their entirety.
Section 2. That the City Council of the City of Grapevine authorizes the purchase
of liquid petroleum gas (propane) on an as needed basis for a total cost not to exceed
$30,000.00 annually.
Section 3. That the City Manager, or his designee, is authorized to take all steps
necessary to consummate the purchase of said liquid petroleum gas (propane).
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 6th day of January, 2004.
ATTEST: