Loading...
HomeMy WebLinkAboutPR 20815: EMERGENCY CONTRACT FOR LEASE OF DIESEL TANK AND FUEL FOR TRANSIT City of Port Arthur Transit Department Memorandum To: Rebecca Underhill,Interim City Manager Cc: Ron Burton,Assistant City Manager From: Ivan Mitchell,Transit Director Date: May 2,2019 Re: P.R.20815 Nature of Request: Enter into an emergency contract with Spidle& Spidle,Inc.,which authorizes Port Arthur Transit(PAT)to lease a 2000-gallon diesel tank and purchase the supplementary fuel. 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 impacts 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 was authorized to lease a 2000- gallon diesel tank. The tank is being leased from Spidle& Spidle, Inc. at no cost; however the diesel fuel is purchased from them to retain the tank. Currently, PAT is soliciting bids from certified contractors to fix its fueling system. While the construction process occurs PAT will need to retain the tank and purchase fuel from Spidle&Spidle,Inc. Spidle and Spidle,Inc's margin will be$0.081 over OPIS average per day. This contract is temporary until such time as procurement procedures can be satisfied for a more formal contract. Recommendation: It is recommended that the City Council approve proposed P.R. 20815. This resolution would authorize the City Manager to enter into an emergency contract with Spidle&Spidle, Inc.to lease a diesel tank at no cost and purchase fuel. The total cost would not exceed$35,000. Budgetary/Fiscal Effect: Funding to pay for fuel is an ongoing cost budgeted in PAT's annual operating budget. P.R. 20815 05/2/2019 IM RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN EMERGENCY CONTRACT WITH SPIDLE & SPIDLE, INC. OF PORT ARTHUR, TEXAS FOR THE LEASE OF A 2,000 GALLON DIESEL TANK AND PURCHASE THE SUPPLEMENTARY FUEL, NOT TO EXCEED $35,000.00. FUNDS ARE AVAILABLE IN 401-1501-561.24 and 401-1501-561.24. WHEREAS, the Port Arthur Transit Department (PAT) requests that the City of Port Arthur enter into an emergency contract for the lease for a 2000-gallon diesel fuel tank and purchase of supplementary fuel from Spidle & Spidle, Inc. of Port Arthur, Texas; and, WHEREAS, PAT is in the process of procuring a contract for the remediation of the underground tank water intrusion problem, and will need to lease the tank and purchase fuel from Spidle & Spidle, Inc. until a contract can be signed after procurement procedures take place; 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. P.R. 20815 05/2/2019 IM THAT, the City Council of the City of Port Arthur hereby authorizes the emergency contract to lease a 2000-gallon diesel tank and purchase the supplementary fuel from Spidle & Spidle, Inc. of Port Arthur, Texas, in a not to exceed amount of$35,000, 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 May A.D. 2019 at a Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Derrick Ford Freeman, Mayor ATTEST: Sherri Bellard, City Secretary P.R. 20815 05/2/2019 IM APPROVED AS TO FORM: �! OA 6e 4&/ o & al //%eno City Attorney APPROVED FOR ADMINISTRATION: Rebecca Underhill, Interim City Manager Ivan Mitchell, Transit Director APPROVED AS TO AVAILABILTY OF FUNDS: Kandy Daniel, Interim Director of Finance Clifton Williams, CPPB Purchasing Manager P.R. 20815 05/2/2019 IM Exhibit "A" CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND SPIDLE & SPIDLE, INC. THIS AGREEMENT, made this day of , 2019, 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, a(n) 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 60 days from start date on Notice to Proceed. The City can terminate this contract at its convenience which includes, but is not limited to, funding not being available in any budget cycle with ten (10) days written notice. 2. The Contractor will supply equipment and diesel fuel to 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. 3. 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 in the Specifications. 4. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms therein for the sum of $.081 over OPIS average per day for diesel, not to exceed $35,000.00. 5. The term "Contract Documents" means and includes the following: a) Agreement b) Proposal 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. 7. 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. A- 1 Signed on the day of , 2019. ATTEST CITY OF PORT ARTHUR BY Sherri Bellard Rebecca Underhill City Secretary Interim City Manager Signed on the day of , 2019. WITNESS CONTRACTOR BY Print Name: Print Name: A- 2