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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