Item 4G MemoM E M O R A N D U M
May 4, 2010
To: Shana Yelverton
From: Sharen Jackson, Director of Finance
Sharon Guess, Deputy Director of Finance
Tim Slifka, Purchasing Manager
Approve City Fuel Purchasing from Martin Eagle Oil through an
Subject:
interlocal purchasing agreement with Tarrant County
Action
Requested:
Approve interlocal agreement with Tarrant County to purchase
fuel City-wide from Martin Eagle Oil.
Background
Information:
The City currently purchases fuel from Martin Eagle Oil through an
interlocal agreement with the City of Fort Worth. The contract
expired, and the City of Fort Worth opted to join a nationwide fuel
bid through National IPA. The new contract awarded by the City
of Fort Worth resulted in an increase in fuel costs for all
participating cities. On April 6, 2010 Tarrant County
Commissioners Court approved Bid # 2010-046 Annual Contract
for Fuel Countywide with primary award to Martin Eagle Oil. It is
in the City of Southlake’s best interest to purchase fuel through
the Tarrant County contract which offers a slightly lower fuel cost.
Financial
Considerations:
Maintain lowest available fuel cost for the City.
Strategic Link:
Obtaining resources through interlocal purchasing options links to
multiple areas of the City’s Strategy Map including B1 –
Implement and share best practices across all departments. B2 –
Collaborate with select partners to implement service solutions.
B4 – Provide high quality customer service.
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:
Deny the interlocal agreement with Tarrant County for fuel for the
City of Southlake.
Supporting
Documents:
Estimated cost comparison.
Staff
Recommendation:
Approve interlocal agreement with Tarrant County to purchase
fuel City-wide from Martin Eagle Oil.
UnleadedDiesel
Average Cost of Fuel Current
Contract w/Ft Worth FY 08-09$ 1.7406591.714956$
Estimated Cost of Fuel New
Contract w/Ft Worth & NIPA
(Based on FY 08-09 Average
Pricing)$ 1.7506591.724956$
Estimated Cost of Fuel New
Contract Tarrant County (Based
on FY 08-09 Average Pricing)$ 1.7636591.709456$
Average Cost Both Fuels Ft
Worth/NIPA
$ 1.737808
Average Cost Both Fuels
Tarrant
$ 1.736558
Unleaded Estimated Cost for
Fuel Only FT Worth/NIPA$ 105,879.52
Unleaded Estimated Cost for
Fuel Only Tarrant$ 104,928.12
Diesel Estimated Cost for Fuel
Only Ft Worth$ 93,634.00
Diesel Estimated Cost for Fuel
Only Tarrant$ 94,329.30
Total Estimate Ft Worth/NIPA$ 199,513.52
Total Estimate Tarrant
$ 199,257.42
Difference
$256.10