HomeMy WebLinkAboutE. SANDIFER'S LP GAS - PROPANE GASCITY OF PORT ARTHUR, TEXAS
MAYOR AND CITY COUNCII. COMMUNICATIONS.
RECOMMENDATION:
We recommend that the City Council authorize the payment of $7,783.47 to Sandifer's LP Gas
Co. of Port Arthur, Texas for 3,421.30 gallons of Propane Gas (Average cost per gallon $2.28)
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 Purchasing/Transit Department's attention in mid April 2008 by the City's
Finance/Accounting Department. Since this oversight was determined, the Purchasing/Transit
Departments has prepared 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: 401-0000-142.10-00. 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-OQ respectively.
Prepared by: Disposition by Council: Processed:
TK:ja
Approved by:
`~~ ( )Approve ( )Other (Describe) City Secretary
Dale:
Date: Reference No. Subject Page
5-9--OS Authorization to Process Payments for Propane Gas to
' pang of Port Arthur Texas 1 of 2
CITY OF PORT ARTIIUR, TEXAS
MAYOR AND CITY COUNCIL COMMUNICATIONS
Date:
5-9--08 Reference No. Subject
Authorization to Process Payments for Propane Gas to
Sandifer's LP Gas Company of Port Arthur, Texas Page
2 of 2
STAFF/EMPLOYEE EFFECT:
No anticipated effect on staffing is expected with this action.
SUMMARY:
We recommend that the City Council authorized the payment of $7,783.47 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. The original bid opening
of May 14, 2008 has been changed to May 21, 2008 by Addendum Number One (1). 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.
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Tom Kestranek
Transit Manager
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Rebecca Underhill
Director of Finance
DA/WORDlCOUNC[L
Prepared by: Disposition by Council: Processed:
TK:ja
Approved by:
( )Approve ( )Other (Describe) City Secretary
Date:
Director of Planning