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HomeMy WebLinkAboutItem 08 - Fuel ITEM #8 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGERbIL- MEETING DATE: APR I L 2, 2013 SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT FOR THE PURCHASE OF DIESEL, UNLEADED AND E85 FUEL RECOMMENDATION: City Council to consider approval to renew an annual contract for diesel, unleaded and ® 5 fuel with Douglas Distributing Company through an Interlocal Cooperative Purchasing Agreement with Tarrant County, Texas. FUNDING SOURCE: Funds are budgeted in accounts 100-14110-000-0 (Inv no ry-U n leaded Fuel) 100- 14105-000-0 (inventory-Diesel Fuel) and 100-14114-000-0 (inventory E-85 Fuel) in the estimated amount of$980,000. BACKGROUND: Purchases will be made as required and in accordance with an Interlocal Cooperative Purchasing Agreement with Tarrant County, Texas as allowed by the Interlocal Cooperation Act, Texas Government Code, Chapter 791 and Texas Local Government Code, Section 271.101 and 271.102 and satisfies all bidding requirements. Tarrant County received bids and awarded diesel and unleaded fuel contracts is included five optional, one-year renewals to Martin Eagle Oil Company, Inc. as primary contractor and Douglas Distributing Company as secondary contractor. Due to the non- renewal of ethanol tax credit for gasoline, Martin Eagle it Company terminated the contract per the terms and conditions of the Tarrant County Bid 2010-046 in January 2012 and Tarrant County awarded Douglas Distributing Company as the primary contractor for the contract. The purpose of this contract is to establish fixed annual pricing fort purchase of Unleaded, Diesel, and E-85 Fuel for City vehicles. If approved, this will be for the it renewal option oft e five available. The Public Works Department reviewed the contract for specification compliance and pricing and determined that the contract would provide the best service and pricing for meeting the needs of the City. Douglas Distributing Company is currently providing this 3/2712013 2:47:37 PIM ITEM #8 service with satisfactory results and has agreed to renew the contract for another year with no increase in pricing. Staff recommends approval PH/LW 3/27/2013 2:47:37 PM