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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: January 28, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to utilize a contract through National Intergovernmental Purchasing Alliance Company dba OMNIA Partners, Public Sector, for the purchase of motor vehicle fuels for use by all City departments, as awarded by the City of Fort Worth Contract #53316; and providing and effective date (File 7251 – awarded to Martin Eagle Oil Company, Inc., for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $16,000,000). INFORMATION /BACKGROUND The City of Denton currently purchases fuel from a National IPA contract that was put together by the City of Fort Worth. Denton has used a form of this contract for the past 10 years. This contract has been bid and serviced by Martin Eagle Oil Company, Inc. This request is for awarding a contract for the bulk supply of a variety of motor vehicle fuels to include diesel, biodiesel, regular unleaded gasoline, and E85 Ethanol to OMNIA Partners, Public Sector (formerly National IPA). The OMNIA Partners contract is serviced by a local Denton vendor, Martin Eagle Oil Company, Inc. In FY18/19 the City of Denton purchased 1.31 million gallons of liquid fuel, at a cost of $2,833,972. This includes Regular Unleaded, E85 Ethanol, Diesel, and Biodiesel products. These amounts and costs include fuel ordered for the DCTA and billed back at cost plus 1.5%. The City also purchased 40,600 gallons of Diesel Exhaust Fluid (DEF) at a cost of $75,134. Annual total fuel spend history is as follows: 2016 - $2,057,179 2017 - $2,460,093 2018 - $2,486,153 2019 - $2,909,106 It is anticipated that fuel quantities and costs could increase over the life of the contract due to anticipated changes in the make-up of the City fleet, future growth and overall oil market volatility. The requested five (5) year total award amount is $16,000,000 includes a 3% per year inflationary factor to cover possible price increases. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Pricing obtained through the City of Fort Worth Contract 53316, has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 12, 2006, Council approved the interlocal agreement with the City of Fort Worth (Ordinance 2006-240). RECOMMENDATION Award a contract with Martin Eagle Oil Company, Inc., for the annual purchase of motor vehicle fuels for use by all City departments, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $16,000,000. PRINCIPAL PLACE OF BUSINESS Martin Eagle Oil Company, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION Fuel is purchased using the Fleet Services Operating Budget accounts 820100.6408 for regular unleaded gasoline, 820100.6418 for diesel, and 820100.6417 for biodiesel. Requisition #145052 has been entered in the Purchasing software system. The budgeted amount for this item is $16,000,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Presentation Exhibit 3: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Terry Kader, 940-349-8729. Legal point of contact: Mack Reinwand at 940-349-8333.