Exhibit 1 - Agenda Information SheetCity of Denton
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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.