From
Jayson R. Ramirez, Fleet Services Manager
Title
Ratification of Change Order No. 2 to the motor fuels contract with Martin Eagle Oil adding an additional fuel pump station, at Fire Station 10, with an annual estimated cost of $250,000
Presenter
Jayson R. Ramirez, Fleet Services Manager
Recommend Action
Approve
Analysis
State purchasing laws, Local Government Code, Chapter 271, authorize local governments to enter into joint contacts and cooperative agreements for the performance of governmental functions normally associated with the operation of government such as purchasing necessary materials and supplies. The City approved a Master Inter-local agreement with Tarrant County whereby the City could make use of all of that entities agreement(s).
On April 1, 2014, City Council approved a one year contract with three optional one year renewals to Martin Eagle Oil Co. to provide motor fuel at an annual cost of $2,350,000 using our interlocal agreement with Tarrant County. Change order one, approved January 3, 2017 added the sum of $10,000 to reflect the additional allowances needed for diesel fuel. The last and final contract renewal was executed on March 16, 2017 extending the contract expiration date to April 8, 2018.
Change Order two, upon ratification, will increase by the estimated sum of $250,000 to reflect the additional fuel pump station, at Fire Station 10, making the total estimated annual amount to be paid to Martin Eagle Oil under such contract $2,610,000.000.
Since, construction was projected to be completed on the additional fuel pump station, at Fire Station 10 on July 25, 2017 and motor fuel services were required for Fleet Service operations, we are asking ratification by the Council of the Change Order.
Financial Consideration
Funds are available in FY 2016/2017 Fleet Services Fuel Inventory fund (225510-60400) and charged to various city’ department budgets as used. Funding for future fiscal years will be paid from that year’s approved budgets.