Item 4KM E M O R A N D U M
October 6, 2015
To: Shana Yelverton
From: Sharen Jackson, Chief Financial Officer
Tim Slifka, Purchasing Manager
Subject: Item 4K Approve Annual City Fuel Purchasing from Martin Eagle Oil
through use of a Cooperative Purchasing Agreement with National
IPA and City of Fort Worth in an Amount Not to Exceed $463,255
Action
Requested: Approve annual City fuel purchases through a cooperative
purchasing agreement with National IPA (Intergovernmental
Purchasing Alliance) and City of Fort Worth from Martin Eagle Oil.
Background
Information: The City purchases fuel from Martin Eagle Oil utilizing a
cooperative purchasing agreement with National IPA and the City
of Fort Worth. This agreement is based on a nationally awarded
cooperative purchasing fuel contract. At this time, this contract
provides the City with the best overall pricing for our required
fuels. It is in the City of Southlake’s best interest to continue to
purchase fuel through the National IPA and City of Fort Worth fuel
contract at this time. In FY 2015, the City’s fuel cost was $300,000
(est.)
Fiscal Year Budgeted Actual
FY 2013 457,197 $484,740*
FY 2014 456,494 $393,779
FY 2015 483,228 $300,000 est.
FY 2016 $463,255 N/A
*Includes fuel cost for 4 additional fuel tanks and 2 additional fuel types
Financial
Considerations: Maintain lowest available fuel cost for the City. These purchases
will be funded through department fuel budget for FY 2016.
Strategic Link: B2 – Collaborate with select partners to implement service
solutions.
Citizen Input/
Board Review: None
Legal Review: Interlocal purchasing is allowed through Local Government Code
271.102. City Attorney’s have reviewed interlocal agreements.
Alternatives: Do not use cooperative purchasing for City fuel purchases and
release our own bid.
Supporting
Documents: Interlocal Agreements with National IPA and City of Fort Worth
Staff
Recommendation: Approve continued purchasing of City fuel through National IPA
and City of Fort Worth national fuel contract from Martin Eagle Oil.
Fort Worth City of Southlake
Cooperative Purchasing Interlocal Agreement
OFfiCIAL RECORD
CITY SECRETAR t
CONTRACT NO
COOPERATIVE PURCHASING INTERLOCAL AGREEMENT
This Cooperative Purchasing Interlocal Agreement Agreement is made and entered
into as of the date written below between the City of Southlake Texas Southlake and
the City of Fort Worth Texas Fort Worth
WHEREAS both City of Southlake and Fort Worth have each determined a need for a
cooperative agreement to purchase like goods and services to avoid duplicate
procurement efforts and obtain the benefits of volume purchasing and
WHEREAS City of Southlake and the Fort Worth are authorized by Section 271 102 of
the Local Government Code to pursue mutually beneficial and cooperative purchasing
programs
NOW THEREFORE for and in consideration of the mutual obligations and benefits
contained herein City of Southlake and City of Fort Worth agree as follows
SECTION 1 The purpose of this Agreement is to provide City of Southlake and Fort
Worth with additional purchasing options by satisfying the provisions of Section 271 102
of the Local Government Code
SECTION 2 The parties agree that each of the parties shall respectively designate a
person to act under the direction of and on behalf of the designating party the
Designated Representative
SECTION 3 At the request of the other party a party that enters into a contract with a
vendor for goods or services the First Purchasing Party shall attempt to obtain the
vendor s agreement to offer those goods and services to the other party the Second
Purchasing Party for the same price and on the same terms and conditions as have been
offered to the First Purchasing Party If the vendor so agrees and if the Second
Purchasing Party is agreeable to such terms and conditions the Second Purchasing Party
may enter into its own separate contract with the vendor for the purchase of such goods
or servIces
SECTION 4 Unless otherwise agreed between the Designated Representatives
payments for a purchase made by the Second Purchasing Party shall be paid directly to
the vendor and not to the First Purchasing Party The Second Purchasing Party shall have
the responsibility of determining whether the vendor has complied with any provisions in
its contract with the vendor including but not limited to those relating to the quality of
items and terms of delivery and shall be responsible for enforcement of its contract
against the vendor including all cost of enforcement
Page 1 of3
Fort Worth City of Southlake
Cooperative Purchasing Interlocal Agreement
SECTION 5 This Agreement will be subject to all applicable federal state and local
laws ordinances rules and regulations
SECTION 6 This Agreement may be terminated by either party without cause or
penalty upon not less than thirty days written notice to the other party
SECTION 7 The parties acknowledge that each party and if it so chooses its counsel
have reviewed and revised this Agreement and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party must not be
employed in the interpretation of this Agreement or any amendments or exhibits hereto
SECTION 8 If any action whether real or asserted at law or in equity arises on the
basis of any provision of this Agreement venue for such action shall lie in state courts
located in Tarrant County Texas or the United States District Court for the Northern
District of Texas Fort Worth Division This Agreement shall be construed in
accordance with the laws of the State of Texas
SECTION 9 If any term or provision of this Agreement is held to be illegal invalid or
unenforceable the legality validity or enforceability of the remaining terms or provisions
of this Agreement shall not be affected thereby and in lieu of each such illegal invalid or
unenforceable term or provision the parties shall endeavor to agree to a legal valid or
enforceable term or provision as similar as possible to the term or provision declared
illegal invalid or unenforceable
SECTION 10 Execution of this Agreement does not obligate City of Southlake or Fort
Worth to make any purchase to pay any membership fee or to otherwise or in any
manner incur any cost or obligation
SECTION 11 This Agreement may be executed in multiple counterparts each of which
shall be deemed an original and all of which shall constitute but one and the same
instrument
SECTION 12 The undersigned officers andor agents are properly authorized to
execute this Agreement on behalf of the parties hereto and each party hereby certifies to
the other that any necessary actions extending such authority have been duly passed and
are now in full force and effect
SECTION 13 All notices requests demands and other communications which are
required or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given upon the delivery or receipt thereof as the case may be
if delivered personally or sent by registered or certified mail return receipt requested
postage prepaid to the respective city representative set out below or hisher designee
Page 2 of3
Fort Worth City of Southlake
Cooperative Purchasing lnterlocal Agreement
EXECUTED this day of Dr 2007
CITY OF FORT WORTH
1000 Throckmorton
Fort Worth Texas 76102
CITY OF SOUTHLAKE
1400 Main Street Suite 440
Southlake Texas 76092
aren L Montgome
ssistant City Ma
Ji
Assistant City
Ci Lp
Marty Hendrix
City Secretary
DATE nrltH 2i dE07
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Date
DATE 1 0 07
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Approved as to Form and Legality
Page 3 of3
OFFICIAL RECORD
IVATICOfVoL PA
NATIONAL IPA MASTER INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT
WHEREAS after a competitive bidding and selection process by Principal Procurement Agencies a number of Suppliers
have entered into Master Agreements to provide a variety of goods products and services based on national volumes herein
Products
WHEREAS Master Agreements are made available by Principal Procurement Agencies through National IPA and provide
that Participating Public Agencies may purchase Products on the same terms conditions and pricing as the Principal Procurement
Agency subject to any applicable local purchasing ordinances and the laws of the State of purchase
NOW THEREFORE in consideration of the mutual promises contained in this agreement and of the mutual benefits to
result the parties agree as follows
1 That the procurement of Products subject to this agreement shall be conducted in accordance with and subject to the
relevant statutes ordinances rules and regulations that govern each partys procurement practices
2 That the cooperative use of bids obtained by a party to this agreement shall be in accordance with the terms and
conditions of the bid except as modification of those terms and conditions is otherwise allowed or required by
applicable law
3 That the Principal Procurement Agencies will make available upon reasonable request and subject to convenience
information which may assist in improving the procurement of products by the Participating Public Agencies
4 That a procuring party will make timely payments to the Supplier for Products received in accordance with the terms
and conditions of the procurement Payment for Products and inspections and acceptance of Products ordered by the
procuring party shall be the exclusive obligation of such procuring party Disputes between procuring party and
Supplier are to be resolved in accord with the law and venue rules of the State of purchase
5 The procuring party shall not use this agreement as a method for obtaining additional concessions or reduced prices
for similar products or services
6 The procuring party shall be responsible for the ordering of Products under this agreement A nonprocuring party
shall not be liable in any fashion for any violation by a procuring party and the procuring party shall hold non
procuring party harmless from any liability that may arise from action or inaction of the procuring party
7 This agreement shall remain in effect until termination by a party giving 30 days written notice to the other party
8 1 understand that use of the National IPA Master Agreements are at the complete discretion of the Participating
Public Agency
9 The procuring party shall designate a person to act under the direction of and on behalf of the procuring party in all
matters relating to this agreement
This agreement shall take effect after execution of this document and the registration of the Participating Public Agency
Si nature Participatin Public Agency
Date l lC l 00 1