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