CC MEETING: April 7, 2015
DATE: March 19, 2015
TO: Leonard Martin, City Manager
FROM: Vince Priolo, Purchasing Manager and Carl Shelton, Fleet & Facilities Director
Title
Consider Approval For The Purchase Of Motor Fuel Through An Interlocal Agreement And A Tarrant County Bid Renewal In An Amount Not To Exceed $1,253,615.00.
Body
BACKGROUND:
On April 15, 2014 council approved an item to purchase fuel through a Tarrant County Interlocal Agreement. The original 12 month term of this agreement expired on April 6, 2015. Tarrant County Commissioners Court approved the first renewal of Tarrant County Bid No. 2014-063, Annual Contract for Fuel on Tuesday, February 24, 2015, via Court Order Number 119573. All vendors agreed to renew the bid at current fixed prices. This bid renewal will expire on April 6, 2016 at which time there will be two (2) renewal options remaining.
The city purchases approximately 300,000 gallons of diesel and unleaded fuel annually. The Tarrant County bid award lists Martin Eagle, as the primary vendor, TAC Energy as the secondary vendor, and Douglas Distributing as an alternate fuel provider. The Tarrant County bid results historically produce the best fuel pricing, since their network includes over 300+ governments. In fact, their bid is so competitive that Collin County cancelled their bid award and most of those governments utilizing the Collin County bid transitioned to Tarrant County in 2014.
Year to date (YTD) fuel expenses are significantly below budgeted amounts due to a drastic decline in fuel prices. Fuel prices are a very volatile and rapidly fluctuating market, impacted by severe weather, refinery shutdowns, and global economic instability. The 2015 Fleet Services budget includes $1,253,615.00 for fuel purchases and has a YTD expenditure of $294,091.00 through February 28, 2015. Fuel expenses were $1.1 million for FY14. Staff recommends no changes to the current budgeted amount. This will provide ...
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