HomeMy WebLinkAboutSANDIFER'S LP GAS COMPANY - PROPANE GASCITY OF PORT ARTHUR, TEXAS
MAYOR AND CITY COUNCIL COMMUNICATIONS
RECOMMENDATION:
We recommend that the City Council authorize the payment of $27,382.50 to Sandifer's LP
Gas Co. of Port Arthur, Texas for 12,522.90 gallons of Propane Gas (Average cost per gallon
$2.19) for the Transit Department. These expenses have been charged to Transit
Inventory/Stores Account Number: 401-0000-142.10-00.
BACKGROUND:
In 2003 and 2005 the Transit Department procured and took delivery of thirteen (13)
dedicated propane power vehicles (Buses/Paratransit Vans) that are utilized within daily
Transit operations. During this time frame and to the present, Sandifer's LPGas Co. has
supplied all the propane fuel for these vehicles without an approved purchasing vendor
contract. This procuring oversight was brought to the Purohasing/Transit Department's
attention in mid April 2008 by the City's Finance/Accounting Department. Since this
oversight was determined, the Purchasing/Transit Departments have commenced preparing
bid specifications for this procurement of propane gas for the Transit Department. However,
during this bid solicitation time process, the Transit Department will need to continue
purchasing propane gas and processing all on going payments to Sandifier's LP Gas Co. until
the bid is awarded. Currently, Sandifer's LP Gas Co. is the area's sole source licensed
(Texas Railroad Commission) supplier and distributor vendor for propane gas. Additionally,
Sandifer's at no cost has provided an on site fueling station (1,000 gallon tank and a metered
pump station) located at the Transit Service Center Fuel Island. This service includes all
maintenance and repairs to the fueling equipment.
BUDGET/FISCAL EFFECT:
Funding for the propane gas purchases is available from Transit Inventory/Stores Account
Number: 401-0000-]42.10-00. As the fuel is utilized/consumed from the Inventory/Stores
Account it will be expensed to Transit Account Numbers: 401-1501-561.24-00 and 401-1506-
561.24-00, respectively.
Prepared by: Disposition by Council: Processed:
TK:ja
Approved by:
( )Approve ( )Other (Describe) City Secretary
Date:
Dale: Reference No. Subject Page
Revised Authorization to Process Payments for Propane Gas to 1 of 2
4-30-08 Sandifer's LP Gas Company of Port Arthur, Texas
CITY OF PORT ARTHUR, TEXAS
MAYOR AND CITY COUNCIL COMMUNICATIONS
Date:
Revised Reference No. Subject
Authorization to Process Payments for Pro ane Gas to Page
2 of 2
4-30-OS Sandifer's LP Gas Company of Port Arthur, Texas
STAFF/EMPLOYEE EFFECT:
No anticipated effect on staffing is expected with this action.
SUMMARY:
We recommend that the City Council authorized the payment of $27,382.50 for current propane
gas purchases to Sandifer's LP Gas Co. of Port Arthur, Texas. All future delivery payments
should be short termed pending the bid solicitation process and the award of bid. Funding for
current and future propane purchases are available from Transit Inventory/Stores Account 401-
0000-142.10-00, and as consumed will be expensed to Transit Account Number 401-1501-
561.24-00 and 401-1506-561.24-00, respectively.
~~
Tom Kestranek
Transit Manager
Rebecca Underhill
Director of Finance
1IA/WORD/COUNCIL
Prepared by: Disposition by Council: Processed:
TK:ja
Approved by:
( )Approve ( )Other (Describe) City Secretary
Date:
Director of Planning