City Council Meeting


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  F.2.j.       
Meeting Date: 04/19/2022  
Contact: Charles Brewer, Development Services Director
Also Contact: Matt Miser
Phone: 972-230-5714  

COUNCIL ACTION
Motion by Councilmember Dr. Dinah Marks with a second by Councilmember Letitia Hughes to approved as presented, Motion passes 7-0.
AGENDA ITEM:
Consider authorizing the City Manager to negotiate and execute agreements with Jack Ray Oil Co. (Primary) and Douglas Distributing (Secondary) to purchase fuel utilizing Tarrant County's Bid No. 2022-063
BACKGROUND:
For the past several years, the City has utilized Tarrant County’s contract with U.S. Oil to purchase fuel (unleaded and diesel) for the City's vehicles.  U.S. Oil’s contract with Tarrant County was awarded through the County’s competitive bidding process.  The City’s use of Tarrant County’s contracts is authorized by the "Texas Interlocal Cooperation Act" Chapter 791 Texas Government Code.  The City's Interlocal Purchasing Agreement with Tarrant County was officially executed in October 1999.

On Wednesday April 6, 2022 City Staff was informed by U.S. Oil that they could no longer provide fuel to the City because their contract with Tarrant County officially ended on April 6, 2022. Staff subsequently reviewed Tarrant County's website and discovered that on March 15, Tarrant County Commissioners Court approved Court Order #13776, officially awarding the Annual Contract for Fuel to Jack Ray Oil Co. (Primary) and Douglas Distributing (Secondary), for a term of 12 months, effective April 7, 2022, with three (3) one-year renewal options. 

The City of DeSoto has a fueling station located at the Service Center with one fuel tank and two fuel dispensing pumps.  The single tank is partitioned to hold 3,000 gallons of diesel and 6,000 gallons of unleaded fuel.

Tarrant County's bid notice was advertised in local newspapers, as required by State statue as well as posted in the following locations
• Tarrant County Web Page
• Arlington Black Chamber of Commerce
• Fort Worth Hispanic Chamber of Commerce
• Fort Worth Metropolitan Black Chamber of Commerce
• Tarrant County Asian American Chamber of Commerce.  

Sixty-five (65) vendors were contacted and requested to participate in the bid process. All documents pertaining to the bid were posted on the Tarrant County website and were downloaded by interested bidders. A pre-bid conference was held on February 9, 2022.  Six (6) bids and two (2) no-bids were received.
FINDINGS:
The City of DeSoto uses the Interlocal Agreement with Tarrant County to purchase fuel for all City vehicles and equipment.  This agreement allows the City to purchase fuel at a lower rate due to larger quantities forecasted to be purchased by Tarrant County and several other municipalities.  The City has utilized this Interlocal Agreement with Tarrant County for several years due to this cost benefit.  
FINANCIAL IMPACT:
The City has budgeted $280,000 for fuel for Fiscal Year 2021-2022.  These funds were budgeted in the adopted FY 2022 Budget/General Fund/Equipment Services Account No. 101-53680-003-022 Vehicle Fuel. This annual contract will run concurrently with Tarrant County's annual contract.
RECOMMENDATION:
Staff recommends Council authorize the City Manager to negotiate and execute agreements with Jack Ray Oil Co. (Primary) and Douglas Distributing (Secondary) to purchase fuel utilizing Tarrant County's Bid No. 2022-063.
MANAGEMENT REVIEW
Attachments
ILA with Tarrant County
Tarrant Cty Bid No. 2022-063 Report
Tarrant County Commissioners Mtg. Minutes - Court Order No. 137706 - March 15, 2022


    

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