Item 4E (2)City of Southlake, Texas
M E M O R A N D U M
January 10, 2007
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Deborah Russell, Purchasing Agent
Subject: Authorize a Cooperative Purchasing Interlocal Agreement with the
City of Fort Worth
Action
Requested:
Authorize a Cooperative Purchasing Interlocal Agreement with the City of
Fort Worth.
Background
Information:
Staff originally approached the City of Fort Worth for the establishment of
a cooperative purchasing interlocal agreement to expedite the acquisition
of fuel for City vehicles. During those discussions it became apparent that
the City of Southlake could benefit from a blanket interlocal agreement that
allows the City of Southlake to prepare, execute, and administer contracts
with vendors at prices established in City of Fort Worth contracts. Both
cities are bound by the same purchasing regulations. In order for this
agreement to become effective, the governing bodies of both parties must
authorize its execution.
Southlake’s immediate benefit from entering into this agreement will be
significant savings in fuel expenditures. A prime example of this savings is
based on the September 25, 2006 pricing difference between our fuel
provider $2.0063 per gallon for unleaded fuel being purchased from Reeder
Distributors and the $1.8866 per gallon for unleaded fuel that would have
been purchased from the City of Fort Worth fuel contract. This is a
savings of almost $0.12 per gallon or a savings if purchased during our
2005-2006 fiscal year of $23,661.68.
This agreement will become effective upon execution and will be applicable
to all existing and future contracts for goods and services, subject to the
approval of the vendor or service provider.
Financial
Considerations:
Potential annual financial savings of $20,000+.
Citizen Input/
Board Review:
None
Legal
Review:
City Attorney has reviewed and approved this agreement.
Alternatives:
Deny this agreement.
Supporting
Documents:
Cooperative Purchasing Interlocal Agreement with the City of Fort Worth
which has been approved by the Fort Worth City Council.
Staff
Recommendation:
Authorize a Cooperative Purchasing Interlocal Agreement with the City of
Fort Worth.
Staff
Contact:
Sharen Jackson, Director of Finance
Deborah Russell, Purchasing Agent
Timothy Slifka, Fleet Coordinator