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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