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HomeMy WebLinkAboutPR 20631: GASOLINE PURCHASE FOR TRANSIT VEHICLES City of Port Arthur Transit Department Memorandum To: Harvey Robinson,Interim City Manager Cc: Ron Burton,Assistant City Manager From: Ivan Mitchell,Transit Director Date: December 26,2018 Re: P.R 20631—Gasoline Purchase for Transit Vehicles Nature of Request:Authorizing the City Manager to execute a contract which authorizes Port Arthur Transit(PAT)to lease a 1,000 gallon gasoline tank and purchase the supplementary fuel from Spidle & Spidle,Inc.of Port Arthur,Texas. Background: PAT recently purchased eight (8) 2018 Champion gasoline powered paratransit buses to replace eight (8) Ford diesel powered vehicles that have exceeded their useful life. The Champions will be placed in service around mid-January 2019. The purchase and decommissioning will reduce PAT's diesel consumption and increase gasoline usage. PAT is in the process of designing a new fuel station which will house propane, diesel, and gasoline. The final design is due mid-March with construction completion slated for August 2019. In the meantime, PAT has to effectively manage gasoline consumption and reporting requirements. Sun Coast Resources, Inc. was the lowest bidder at $+.0800 OPIS difference; however their markup was based on a minimum of 6,000 gallons per delivery. PAT specified in the RFQ it only needs a 1,000 gallon tank thus Sun Coast Resources, Inc. was not selected because it did not meet the bid specifications. Recommendation: It is recommended that the City Council approve proposed P.R.20631. This resolution would authorize the City Manager to execute a contract with Spidle&Spidle,Inc.to lease a gasoline 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 Director P.R. 20631 12/26/2018 IM RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SPIDLE OIL COMPANY OF PORT ARTHUR, TEXAS FOR THE PURCHASE OF GASOLINE FOR TRANSIT VEHICLES IN AN AMOUNT NOT TO EXCEED $150,000. FUNDS ARE AVAILABLE IN ACCOUNT NUMBERS 401-1501-561.24 AND 401-1506-561.24. WHEREAS,the Port Arthur Transit (PAT)recently purchased eight(8) 2018 Champion gasoline powered paratransit buses to replace eight(8) Ford diesel powered vehicles and, WHEREAS, PAT is in the process of designing and constructing new fueling station which will house propane, diesel, and gasoline; and WHEREAS, prior to construction of the new facility, PAT must effectively manage gasoline consumption and reporting requirements; and WHEREAS,the City's Purchasing Division solicited bids for the purchase of gasoline for the new transit vehicles for a 12 month period; and WHEREAS, the estimated average order is 1000 gallons. Therefore, the specifications provide that the bidder must provide a 1000 gallon fuel tank and other requirements; and WHEREAS, the City received three (3)bids in response to this solicitation(a copy of the bid tab is attached hereto as Exhibit"A"; and WHEREAS, Sun Coast Resources, Inc., was the lowest bidder; however, its bid was disqualified because the bidder did not follow the required conditions set forth in the invitation to bid; and WHEREAS, Spidle Oil Company was the second lowest bidder, which met all of the qualifications and requirements set forth in the invitation to bid. Therefore, it is being recommended that the contract be awarded to Spidle Oil Company. P.R. 20631 12/26/2018 IM 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 execute a contract for the purchase of gasoline for transit vehicles for a 12 month period to Spidle Oil Company of Port Arthur, Texas, in substantially the same form as Exhibit"B". 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 January A.D. 2019 at a Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES: AYES: Mayor: Councilmembers: NOES: Mayor ATTEST: City Secretary P.R. 20631 12/26/2018 IM 4q/ROVE AS TO FORM- 7 City Atto - APPROVED FOR ADMINISTRATION: City Manager Transit Director APPROVED AS TO AVAILABILTY OF FUNDS: Director of Finance Purchasing Manager P.R. 20631 12/26/2018 IM Exhibit "A" ._.... . r i h ,_ 0 ,,z, * . ,..,,,. t_ > > 0pcItz .z CL, 0 ° ‘11C..?,_, ......: � ' I.T...:,11:5,„:_r_ a �°4o. , fa, wG �" _ a. m 0 1 0 g — Q a CD k a o� d r O b9 0 -% 0000 C) 4 = o A coHtj CA O a `� • ° °a eeD n ° C �' s � s CD op44y (in a Qt eD ° o ° �C mot Ee y �b CD to 0 y = d c y )d ± d -n M ms Cr "Q .�, = C PO o CO ; b c � C ( ©i , C. ° x * f9 o et. , C z p m m VI a •- H .0 n ' n 0 a. o ON S X cu- 't a. � � r , - � - til • Oe9 UQ to b ""+ A O< A o ,1 n CD ... .-t �--' b9 O ti t„ A md CO .9 d nn "C v A A H0 al. �J A :,..1 A ^oes T o• O !r CCD A