HomeMy WebLinkAboutG. SANDIFER'S LPG - RENEW CONTRACT FOR PROPANE FUELCITY OF PORT ARTHUR, TEXAS
MAYOR AND CITY COUNCIL COMMUNICATIONS
Date: Reference No. Subject Page
5-13-08 Recommendatiodto Approve t
the existing contract with Sandifer's LPG.
RECOMMENDATION:
The Transit Department recommends the City Council to authorize the City Manager to renew the
existing fuel contract with Sandifer's LPG of Port Arthur, Texas for the estimated amount of
$255,000.00 ($2.50 per. gal.). The original contract included an option to extend it for two (2)
additional years. This is for the first extension of the original contract. These expenses will be charged
to the Inventory/Stores Account Number: 401-0000-142.10-00.
BACKGROUND:
On June 03, 2008 the City Council approved a contract which authorized Sandifer's LP Gas, of Port
Arthur, Texas to be the Transit Department's propane fuel dispensing provider. The contract is for GC
#14 Liquid Propane Gas that is utilized to fuel the Transit fleet. The rack price at this time of renewal
is 0.680976 above Oil Price Information Service (OPIS) PA3 Report of the Beaumont/ Port Arthur
azea (same as last year). The current total delivered cost to the Transit Department is $1.62 per gallon
for Liquid Propane Gas. The Transit Department utilized 102,000 gallons of Liquid Propane Gas in
2008.
BUDGET/FISCAL EFFECT:
Funding for the Liquid Propane Gas purchase 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 401-1506-561.24-00
respectively.
STAFF/EMPLOYEE EFFECT:
No anticipated effect on staffmg is expected with this action.
SUMMARY:
The Transit Department recommends the City Council to authorize the City Manager to renew the
existing fuel contract with Sandifer's LPG of Port Arthur, Texas for the estimated amount of
$255,000.00 ($2.50 per, gal.). Funding for current and future Liquid Propane Gas purchases are
available from Transit Inventory/Stores Account: 401-0000-142.10-00 and as consumed 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:
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Approved by:
~i:~q ~ ( ) APProve ( )Other (Describe) City Secretary
f~ Date:
CITY OF PORT ARTHUR, TEXAS
MAYOR AND-CITY COUNCIL COMMUNICATIONS
Date: Reference No. Subject Page
- - ecommeudation to Approve the second (2" year renewal of 2 of 2
the existing contract with Saodifer's LPG.
Tom Kestranek
Transit Manager
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Shawna Tubbs
Purchasing Manager
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Deborah Echols
Director of Finance
1JA/WORD/COUNCIL
Prepared by: Disposition by Council: Processed:
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Approved by:
( )Approve ( )Other (Describe) City Secretary
Date:
Director of Planning