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Exhibit 1 - Agenda Information Sheet - Amendment 2City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: February 4, 2025 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract extension between the City of Denton and U.S. Venture, Inc. f/k/a Martin Eagle Oil Company, Inc. through June 30, 2025, to continue to purchase motor vehicle fuels for use by all City departments; and declaring an effective date (File 7251 – extending a contract with U.S. Venture, Inc. f/k/a Martin Eagle Oil Company, Inc., to June 30, 2025). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The proposed contract is for the bulk supply of motor vehicle fuels, including diesel, biodiesel, regular unleaded gasoline, and E85 ethanol, to meet the needs of all City departments. This agreement supports Fleet Services in fueling over 1,450 City assets essential for daily operations. Fuel will continue to be delivered to two Fleet Services Fuel Islands for use by City staff. Securing stable fuel pricing is critical to ensuring operational efficiency and financial predictability for the City. Extending this contract will allow the City of Denton to maintain a dependable fuel supply at competitive rates through June 30, 2025. Pricing under this contract, as established through the City of Fort Worth Contract 53316, has been competitively bid and complies with the statutory requirements outlined in Texas Local Government Code 271.102. By extending this agreement, Fleet Services can ensure the uninterrupted provision of fuel services to City departments, enabling assets necessary for essential City operations to remain functional and readily available. Furthermore, this extension will facilitate a seamless transition to a new solicitation, which will be determined by the renewal terms of the interlocal agreement with the City of Fort Worth, to be implemented by June 30, 2025. This amendment will enable cost-effective fuel procurement, allowing the City to efficiently meet its operational needs while adapting to market fluctuations and future requirements. Pricing obtained through the City of Fort Worth has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 12, 2006, City Council approved the interlocal agreement with the City of Fort Worth (Ordinance 2006-240). On January 28, 2020, City Council approved a contract with Martin Eagle Oil Company, Inc., in the not- to-exceed amount of $16,000,000 (Ordinance 20-199). On February 20, 2024, City Council approved Amendment No. 1 with U.S. Venture, Inc. f/k/a Martin Eagle Oil Company, Inc., in the not-to-exceed amount of $4,000,000, for a total not-to-exceed amount of $20,000,000 (Ordinance 24-285). RECOMMENDATION Award a contract extension with U.S. Venture, Inc. f/k/a Martin Eagle Oil Company, Inc., to continue to purchase motor vehicle fuels for use by all City departments, through June 30, 2025. PRINCIPAL PLACE OF BUSINESS U.S. Venture, Inc. f/k/a Martin Eagle Oil Company, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This contract will expire June 30, 2025. FISCAL INFORMATION These services will be funded from Fleet Services Operating budget, account 820100.6408 (regular unleaded), 820100.6418 (diesel), and 820100.6417 (biodiesel). Requisitions will be entered on an as-needed basis. The budgeted amount for this item for fiscal year 2025 is $4,919,284. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Amendment 1 Ordinance Exhibit 3: Amendment 2 Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Tom Gramer, 940-349-7467. Legal point of contact: Marcella Lunn at 940-349-8333.