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HomeMy WebLinkAboutPR 22771: RENEW CONTRACTS WITH TRI-CON INC. AND PETROLEUM TRADERS City of Port Arthur Transit Department Memorandum To: Ron Burton,City Manager From: Ivan Mitchell,Transit Director Cc: Craty Nellison,Administrative Support Supervisor Date: September 15,2022 Re: P.R. 22771—Authorization to renew contracts with Tri-con,Inc.of Beaumont,Texas and Petroleum Traders of Fort Wayne,Indiana for the second year. Nature of Request: Second year(first renewal) of the contracts with Tri-con, Inc. of Beaumont, Texas to purchase gasoline for Port Arthur Transit(PAT)and ultra-low sulfur diesel fuel for Utility Operations, and Petroleum Traders of Fort Wayne,Indiana to purchase ultra-low sulfur diesel for PAT. Background: Per Resolution No. 21-371, Tri-con, Inc. of Beaumont, Texas was awarded a contract to supply gasoline to Port Arthur Transit (PAT) and ultra-low sulfur diesel to utility operations, and Petroleum Traders of Fort Wayne, Indiana was awarded a contract to supply ultra-low sulfur diesel to PAT,with the option for two(2)additional one-year periods. Recommendation:It is recommended that the City Council approve P.R.No. 22771. This proposed resolution would authorize the City Manager to execute the second year (first renewal) of the contract with Tri-con, Inc. of Beaumont, Texas to supply gasoline for Port Arthur Transit (PAT) and ultra-low sulfur diesel for Utility Operations, and Petroleum Traders of Fort Wayne, Indiana to supply ultra-low sulfur diesel to PAT. Budgetary/Fiscal Effect: Funds are available in project TR307A,Account Nos.401-70-505-5230-00- 60-00 and 401-70-525-5230-06-00 (PAT)and 410-40-210-5230-00-00-000, 410-40-215-5230-00-00- 000,410-40-220-5230-00-00-000,410-40-225-5230-00-00-000(Utility Services). P.R. No. 22771 9/15/20221M RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND YEAR (FIRST RENEWAL) OF THE CONTRACTS WITH TRI-CON, INC. OF BEAUMONT, TEXAS TO PURCHASE GASOLINE FOR PORT ARTHUR TRANSIT AND ULTRA LOW SULFUR DIESEL FUEL FOR UTILITY OPERATIONS, AND PETROLEUM TRADERS OF FORT WAYNE, INDIANA TO PURCHASE ULTRA LOW SULFUR DIESEL FOR PORT ARTHUR TRANSIT WITH A TOTAL COMBINED BUDGETARY IMPACT OF $130,000.00; FUNDS ARE AVAILABLE IN PROJECT TR307A ACCOUNT NOS. 401-70-505-5230-00-60-000 AND 401-70- 525-5230-06-00 (PAT) AND 410-40-210-5230-00-00-000, 410-40-215-5230-00-00-000, 410-40-220- 5230-00-00-000,410-40-225-5230-00-00-000(UTILITY SERVICES). WHEREAS, pursuant to Resolution No.21-371, Tri-con, Inc. of Beaumont,Texas was awarded a contract to purchase gasoline for Port Arthur Transit (PAT) and ultra-low sulfur diesel fuel for Utility Operations,and Petroleum Traders of Fort Wayne, Indiana was awarded a contract to purchase ultra-low sulfur diesel for PAT,with an option to renew for two(2)additional one-year periods; and, WHEREAS,this is the second year(first renewal)of the contracts with Tri-con, Inc. of Beaumont,Texas and Petroleum Traders of Fort Wayne, Indiana;and, WHEREAS,the contract with Tri-Con, Inc.has a projected budgetary impact of$65,000.00 for PAT and ultralow sulfur diesel fuel in the projected budgetary impact of$15,000.00; and WHEREAS,the contract with Petroleum Traders Corporation has a projected budgetary amount of$50,000.00 for ultralow sulfur diesel for PAT. 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 Manager is hereby authorized to execute the second year(first renewal)of the contract with Tri-con,Inc. of Beaumont, Texas to purchase gasoline for Port Arthur Transit(PAT)and ultra-low sulfur diesel fuel for Utility Operations, and the second year(first renewal)of the contract with Petroleum Traders of Fort Wayne,Indiana to purchase ultra-low sulfur diesel for PAT, in substantially the same form as attached hereto as Exhibits"A"and"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 September 2022 at a Regular Meeting of the City of Port Arthur,Texas by the following vote:AYES: Mayor: Councilmembers: NOES: Thurman Bill Bartie. Mayor P.R. 22771 9/15/2022 IM ATTEST: Sherri Bellard, City Secretary A ROVED AS TO FORM: Aao p Val Tizen , i Attorney APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY OF FUNDS: 1) Ronald Burton Kandy Daniel Y City Manager Interim Director of Finance a/4 44, e A Aid itAalt _pk. 12--kccii, I Clifton ' illiams, CPPB Ivan Mitc Purchasing Manger Transit Director P.R. 22771 9/15/2022 IM Exhibit "A" CONTRACT FOR THE SUPPLY OF GASOLINE FOR PORT ARTHUR TRANSIT AND ULTRA LOW SULFUR DIESEL TO UTILITY OPERATIONS THIS AGREEMENT, made this day of September,2022, by and between the Cityof Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called "OWNER"or "CITY" and Tri-con, INC. a(n) _ _________ individual,firm,partnership,or corporation 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 CONTRACTO R agree as follows: 1. Pursuant to Resolution No. 21-371,the City entered into a one (1)year contract with the option to renew for two(2)additional one-year periods. The parties hereby agree to exercise said option for the second year(first renewal). The term of this Contract shall be from October 12, 2022, to October 11, 2023, after the start date on the 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 thirty (30)days written notice. 2. The Contractor will perform work as stated in the Contract Documents. 3. The Contractor will adhere to the requirement of not paying less than the prevailing Davis Bacon Related Acts (DBRA) wage rates as specified in the Contract Documents. These rates are minimums to be paid during the life of the contract. 4. During the term of this Contract,the Contractor will furnish at his own expense all the materials, supplies, tools, equipment, labor, and other services necessary to connection therewith, excepting those supplies specifically not required of the contractor in the specifications. 5. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms therein. 6. The term "Contract Documents" means and includes the following a. Agreement b. GeneraInfer-mution * c. Speeifteatiens-* d. Bid Forms * c. Addendums * f. Federal Forms * g. Notice of Award h. h. Notice to Proceed *These items were attached to the original letting contract. 7. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators,successors, and assigns. 8. 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. Signed on this the day of , 2022. OWNER: CITY OF PORT ARTHUR Ronald Burton City Manager P.O. Box 1089 Port Arthur, TX 77641-1089 Signed on this the day of , 2022. CONTRACTOR: Tri-con. INC. By Print Name: Print Title: P.R. No. 22771 9/15/2022 IM Exhibit "B" CONTRACT FOR THE SUPPLY OF ULTRA LOW SULFUR DIESEL TO PORT ARTHUR TRANSIT THIS AGREEMENT, made this day of September, 2022, 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 Petroleum Traders a(n) herein acting by and through — hereinafter called "CONTRACTOR". individual,firm,partnership,or corporation WITNESSETH:That for and in consideration of the payment terms, conditions and agreements set forth herein, OWNER and CONTRACTO R agree as follows: 1. Pursuant to Resolution No. 21-371,the City entered into a one (1)year contract with the option to renew for two(2)additional one-year periods. The parties hereby agree to exercise said option for the second year(first renewal). The term of this Contract shall be from October 12, 2022, to October 11, 2023, after the start date on the 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 thirty (30)days written notice. 2. The Contractor will perform work as stated in the Contract Documents. 3. The Contractor will adhere to the requirement of not paying less than the prevailing Davis Bacon Related Acts (DBRA) wage rates as specified in the Contract Documents. These rates are minimums to be paid during the life of the contract. 4. During the term of this Contract,the Contractor will furnish at his own expense all the materials, supplies, tools, equipment, labor, and other services necessary to connection therewith, excepting those supplies specifically not required of the contractor in the specifications. 5. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms therein. 6. The term "Contract Documents" means and includes the following a. Agreement b. General Information * c. Specifications * d. Bid Forms * c. Addcndums * f. Federal Forms * g. Notice of Award h. h. Notice to Proceed *These items were attached to the original letting contract. 7. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 8. 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. Signed on this the day of , 2022. OWNER: CITY OF PORT ARTHUR BY Ronald Burton City Manager P.O. Box 1089 Port Arthur, TX 77641-1089 Signed and agreed on the day of ,2022. CONTRACTOR: Petroleum Traders Print Name: Print Title: