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HomeMy WebLinkAboutPR 20363: EMBERGENCY FUEL PURCHASE City of Port Arthur Transit Department Memorandum To: Harvey Robinson,Interim City Manager Cc: Ron Burton,Assistant City Manager From: Ivan Mitchell,Transit Manager Date: August 10,2018 Re: P.R.20363—Emergency Fuel Purchase Nature of Request: Execute a new contract with Spidle&Spidle,Inc.,which authorizes Port Arthur Transit(PAT)to lease a 2,000 gallon diesel tank and purchase the supplementary fuel from Spidle& Spidle,Inc. of Port Arthur,Texas. Background: Rainwater intrusion into PAT's underground diesel fueling tank has made the system inoperable while the operational need for diesel fuel is continuous. If PAT experiences a shortage of diesel fuel,there is a potential for service delays and/or cuts for both fixed route and paratransit services. These delays and/or cuts to transit service have a serious impact on customers whose critical dialysis and other medical needs are dependent of PAT's transportation services. To maintain the existing fixed route and paratransit service levels,PAT is leasing a 2,000 gallon diesel tank. The tank is being leased from Spidle&Spidle,Inc. at no cost;however the diesel fuel must be purchased from them to retain the tank. It should be noted PAT contacted several vendors and Spidle &Spidle,Inc. is the only one who had a 2,000 gallon diesel tank available. While PAT further reviews the water intrusion issue for remediation,it will need to retain the tank and purchase fuel from Spidle&Spidle,Inc. for an extended period resulting in a emergency sole source procurement for an estimated seven(7)months. Spidle and Spidle,Inc's. margin will be$0.081 over OPIS average per day. Policies and procedures prescribing contracting without providing for full and open competition or full and open competition after exclusion of sources is permitted by the exceptions in FAR 6.302-2 "Unusual and Compelling Urgency"and authorized under United States Code 41 U.S.C. 3304. The exception applicable to PAT involves the need for fuel is of such an unusual and compelling urgency that the general public would be seriously injured unless PAT is permitted to obtain a consistent supply. Recommendation: It is recommended that the City Council approve Proposed P.R.20363. This Resolution would authorize the City Manager to execute a contract with Spidle& Spidle,Inc.to lease a diesel tank at no cost and purchase fuel. The total cost would not exceed$150,000.00 over the seven(7)month period. Budgetary/Fiscal Effect: Funding to pay for fuel is an ongoing cost budgeted in PAT's annual operating budget. Ivan Mitchell, Transit Manager P.R. No. 20363 08/10/2018 CB RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SPIDLE & SPIDLE, INC. OF PORT ARTHUR, TEXAS FOR THE LEASE OF A 2,000 GALLON DIESEL TANK AND PURCHASE THE SUPPLEMENTARY FUEL UNTIL MARCH 2019, IN AN AMOUNT NOT TO EXCEED $150,000.00; FUNDS ARE AVAILABLE IN TRANSIT FUEL AND LUBRICATION ACCOUNT NO. 401-1501-561.24-00. WHEREAS, the Transit Department requests to lease a 2,000 gallon diesel fuel tank and purchase the supplementary fuel from Spidle& Spidle, Inc. of Port Arthur, Texas; and, WHEREAS,while PAT further reviews its underground tank water intrusion problem for remediation, it will need to lease the tank and purchase fuel from Spidle& Spidle, Inc. for an extended period; and, WHEREAS, this procurement is authorized pursuant to Section 252.022 (a) (3) of the Texas Local Government Code, because of unforeseen damage to public machinery, equipment or other property; and, WHEREAS, this procurement is further authorized in FAR 6.302-2 "Unusual and Compelling Urgency" and authorized under United States Code 41 U.S.C. 3304. The exception applicable to PAT involves the need for fuel is of such an unusual and compelling urgency that the general public would be seriously injured unless PAT is permitted to obtain a consistent supply. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the facts and opinions in the preamble are true and correct. THAT,the City Council of the City of Port Arthur hereby authorizes the City Manager to enter into a contract with Spidle & Spidle, Inc. of Port Arthur, Texas, for the lease a 2,000 gallon diesel tank and purchase the supplementary fuel in an amount not to exceed $150,000.00, in substantially the same form as attached hereto as Exhibit"A". THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED AND APPROVED this day of August A.D. 2018 at a Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: P.R. 20363 08/10/2018 CB NOES: Mayor ATTEST: City Secretary APPROVED AS TO FORM: /Via J,:y_v City Attorney APPROVED FOR ADMINISTRATION: City Manager Transit Manager APPROVED AS T AVA LABILTY OF FUNDS: Director`of Finance / /' / !JJ46kem., Pu chasing Manager P.R. 20363 08/10/2018 CB Exhibit "A" CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND SPIDLE & SPIDLE, INC. THIS AGREEMENT,made this day of 2018, by and between the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called "OWNER" or "CITY" and Spidle& Spidle, Inc., of Port Arthur, Texas,herein acting by and through ,hereinafter called "CONTRACTOR". WITNESSETH: That for and in consideration of the payment terms, conditions and agreements set forth herein, OWNER and CONTRACTOR agree as follows: 1. The term of this Contract shall be from September 1, 2018 to March 30, 2019. The City can terminate this contract at its convenience which includes, but is not limited to, funding not being available in any budget cycle within fifteen(15) days written notice. 2. The Contractor will supply equipment and diesel fuel for the City of Port Arthur Transit as follows: The contractor will provide a 2000 gallon tank with a secondary containment for use, a 110 volt pump with meter and filter. The charge for the pump will be $200.00 per month. 3. The City of Port Arthur will install the pump on tank (mainly electrical). The City of Port Arthur will also provide wrecker service to deliver tank and return to Spidle Spidle's yard when contract terminates. 4. During, the term of this Contract, the Contractor will furnish at his own expense all of the materials, supplies, tools, equipment, labor and other services necessary to connection therewith, excepting those supplies specifically not required of Contractor. 5. The CONTRACTOR agrees to perform all the work described in the proposal and contract documents and to comply with terms therein as follows: $200 a month for pump and .081 over OPIS average for day for diesel. 6. The term "Contract Documents" means and includes the following: 1. Agreement 2. Proposal 7. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. 8. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials,this Agreement in(2 copies)each of which shall be deemed an original on the date first above written. Page 1 of 2 Signed on the day of 2018. ATTEST CITY OF PORT ARTHUR BY CITY SECRETARY Harvey Robinson, Interim City Manager Signed on the day of 2018. SPIDLE & SPIDLE, INC. CONTRACTOR: BY Print Name: Title: WITNESS: By: Print Name: Page 2 of 2 • provide a 2000 gallon tank with a secondary containment • provide a 110 volt pump with meter and filter • City of Port Arthur will install pump on tank (mainly electrical) • City will have to provide wrecker service to deliver tank and return to Spidle's yard when finished • The only charge is for pump it will be 200.00 month • Spidle margin will be .081 over OPIS average for day.