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HomeMy WebLinkAboutItem 17 - Various Fuels ContractMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER t"" MEETING DATE: APRIL 15, 2014 SUBJECT: APPROVAL OF A RESOLUTION FOR ANNUAL CONTRACTS WITH RENEWALS FOR VARIOUS FUELS RECOMMENDATION: City Council to consider approval of a resolution for annual contracts with renewals for various fuels to a primary vendor Martin Eagle Oil Company, secondary vendor TAC Energy and an alternate vendor Douglas Distributing through an Interlocal Cooperative Agreement with Tarrant County. FUNDING SOURCE: Funds are budgeted in accounts 100 - 14110 -000 -0 (Inventory - Unleaded Fuel) 100- 14105 -000 -0 (Inventory - Diesel Fuel) and 100 - 14114 -000 -0 (Inventory E -85 Fuel) in an annual estimated budgeted amount of $1,122,200.00. This purchase will be made in accordance with an existing Interlocal Cooperative Agreement with Tarrant County as allowed by Texas Local Government Code, Section 271.101 and 271.102, Cooperative Purchasing Program. Tarrant County solicited bids on 2014 -063, Annual Contract for Fuel, Countywide. Five bids were submitted and based on evaluations by the Transportation Services Department, Maintenance Precincts and Purchasing, Martin Eagle Oil Company, TAC Energy and Douglas Distributing was awarded primary, secondary and alternate contracts on March 18, 2014. The contract is for an initial one -year period with three, one -year renewal options. 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 contract would provide the best service and pricing for meeting the needs of the City. By awarding primary, secondary and alternate contracts, it assures product availability. 4/9/2014 1:49:29 PM Approximately 23 public entities will utilize this contract including Tarrant County. In addition, in case of fuel shortages, the contract guarantees that the cooperative agencies will continue to receive deliveries. Staff recommends approval. PH /LW 4/9/2014 1:49:29 PM Fq6-5-LS RESOLUTION NO. (? b it) -r ,q C' f A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO CONTRACT FOR VARIOUS FUELS THROUGH AN ESTABLISHED INTERLOCAL PARTICIPATION 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, Tarrant County, 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 Tarrant County, Texas and wishes to utilize a new contract for various fuels meeting all State of Texas bidding requirements; and WHEREAS, Tarrant County, Texas has established primary, secondary and alternate contracts with Martin Eagle Oil Company, TAC Energy and Douglas Distributing, contract #2014 -063, Annual Contract for Fuel, Countywide; and WHEREAS, the City of Grapevine, Texas has a need to purchase various fuels for the City. 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 contracts for various fuels with Martin Eagle Oil Company, TAC Energy and Douglas Distributing through an Interlocal Cooperative Purchasing Agreement with Tarrant County, Texas in an annual estimated budgeted amount of $1,122,200.00. Section 3. That the City Manager or his designee is authorized to take all steps necessary to consummate the purchase of various fuels. 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 15th day of April, 2014. ATTEST: F-Al a a zl� ' 96 =w A RES. NO. 2