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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 PX c t5fl1J1atioa Date DATE 1 0 07 i 1 hVtl fHI A04 iP l5gillit I lt ji11v EOC I IJ QuJ iJ 1 1 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