HomeMy WebLinkAboutItem 08 - Diesel Fuel ���� � g
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
� FROM: BRUNO RUMBELOW, CITY MANAGER ��� �,
MEETING DATE: APRIL 1, 2008
SUBJECT: APPROVAL OF AN ANNUAL CONTRACT FOR THE
PURCHASE OF DIESEL FUEL THROUGH AN INTERLOCAL
AGREEMENT WITH THE CITY OF FORT WORTH
RECOMMENDATION:
City Council to consider approval of annual contract to Martin Eagle Oil Company, Inc.
for diesel fuel through an existing interlocal agreement with the City of Fort Worth.
FUNDING SOURCE:
Funds are available in account 100-14105-000-0 Inventory-Diesel 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 under State law. Council approved the
interlocal agreement and participation with the City of Fort Worth for fuel on January 19,
1999.
The purpose of this contract is to establish pricing for #2 Diesel Fuel for Fleet Services.
The budget for diesel fuel for this fiscal year is $265,432.28. To date the City has spent
$97,673.93 or 37% of the annual budget.
The City of Fort Worth took bids on January 31, 2008 and awarded a contract to Martin
Eagle Oil Company, Inc. on March 4, 2008. The contract is for one-year with options to
renew for four additional years. With a number of different public entities participating
(120) 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 that the cooperative agencies will continue to receive
deliveries.
�
March 27, 2008 (1:30PM)
The contract pricing established by the City of Fort Worth contract is based on a set
. base price that is added or subtracted from the OPIS (Oil Price Information Service)
benchmark price for fuel. The base price is a fixed price for the contract period. The
benchmark price may change depending on the price charged to fuel distributors. The
price that the City of Grapevine is currently paying is $3.22/gallon for diesel fuel. The
United States Government Energy Information Agency indicates the average for this
region is $3.92/Gallon. Currently, the City of Grapevine is spending $0.70/gallon less
than the regional average.
Staff recommends approving an award under the interlocal agreement with the City of
Fort Worth to Martin Eagle Oil Company, Inc. for diesel fuel.
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March 27,2008 (1:32PM)
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER
OR THE CITY MANAGER'S DESIGNEE TO PURCHASE
DIESEL FUEL THROUGH AN ESTABLISHED INTERLOCAL
AGREEMENT 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, Texas is a qualified entity as authorized by
Section 271.102 of the Texas Local Government Code; and
WHEREAS, the City of Grapevine, Texas, has established an Interlocal Agreement
with the City of Fort Worth, Texas and wishes to utilize an established contract for diesel
fuel that has met all State of Texas bidding requirements and listed in the attachment to
this resolution.
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 participation
in the contract established by the City of Fort Worth, Texas.
Section 3. That the City Manager, or his designee, is authorized to take all steps
necessary to establish participation in the contract for diesel fuel.
Section 4. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 1st day of April, 2008.
APPROVED: x� .
ATTEST:
APPROVED AS TO FORM:
RES. NO. 2