HomeMy WebLinkAboutPR 24146: APPROVAL TO PUCHASE ULTRA LOW SULFUR DIESEL FUEL FOR TRANSIT City of Port Arthur
Transit Department
Memorandum
To: Ronald Burton,City Manager
From: Ivan Mitchell,Transit Director
Date: January 27,2025
Re: P.R.24146—Purchase Ultra Low Sulfur Diesel Fuel and Gasoline for the Port Arthur
Transit Department
Nature of Request:
The purpose of this agenda item is to request approval of the first one-year renewal for Tri-Con, Inc.to
purchase gasoline an amount of $40,000.00 annually and ultra-low sulfur diesel in the amount of
$50,000.00 annually for a total annual amount of$90,000.00.
Background:
Tri-Con, Inc. was deemed the lowest bidder at $+.0525 OPIS difference for gasoline and ultra-low
diesel. Resolution No. 24-074 awarded the purchase of gasoline and ultra-low sulfur diesel for Port
Arthur Transit(PAT)a one-year contract with two(2)additional one-year renewals with Tri-Con,Inc.
Recommendation: Renew the contract for the second year (first renewal) with an additional one-year
renewal for TRI-Con Inc.
Budgetary/Fiscal Effect:
Funding for the purchase is budgeted in annual operating budgets: Transit Fuel and Lubrication Project
TR2402 Account Nos. 401-70-505-5230-00-60-000 ($46,093.00) and 401-70-510-5230-00-60-000
($10,000.00)for gasoline and 401-70-525-5230-00-60-000 ($33,907.00 for diesel).
,
I
P.R. No. 24146
01/27/2025 IM
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SECOND YEAR (FIRST
RENEWAL) OF THE CONTRACT WITH TRI-CON, INC. OF
BEAUMONT, TEXAS FOR THE PURCHASE OF GASOLINE AND
ULTRA-LOW SULFUR DIESEL FUEL FOR THE PORT ARTHUR
TRANSIT DEPARTMENT WITH AN ANNUAL TOTAL PROJECTED
BUDGETARY IMPACT AMOUNT OF $90,000.00; FUNDS ARE
AVAILABLE IN TRANSIT FUEL AND LUBRICATION PROJECT TR2402
ACCOUNT NOS. 401-70-505-5230-00-60-000 ($46,093.00) AND 401-70-510-
5230-00-60-000 ($10,000.00) FOR GASOLINE; AND 401-70-525-5230-00-60-
000 ($33,907.00 FOR DIESEL).
WHEREAS, Resolution No. 24-074 awarded the purchase of gasoline and ultra-low
sulfur diesel for Port Arthur Transit (PAT) a one-year contract with two (2) additional one-year
renewals with Tri-Con, Inc.; and
WHEREAS, the Transit Department would like to exercise the option to renew for one
additional year and,
WHEREAS, funding is available in Transit Fuel and Lubrication Project TR2402
Account Nos. 401-70-505-5230-00-60-000 ($46,093.00) and 401-70-510-5230-00-60-000
($10,000.00) for gasoline and 401-70-525-5230-00-60-000 ($33,907.00 for diesel).
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. for the purchase of gasoline and ultra-low sulfur diesel fuel with
an annual projected budgetary impact amount of $90,000.00, in substantially the same form as
attached hereto as Exhibit"A".
THAT, the contract will be for a second-year (first renewal), with the option to renew it
for one (1) additional one-year period.
THAT, funding for this procurement is made available in Transit Fuel and Lubrication
Project TR2402 Account Nos. 401-70-505-5230-00-60-000 ($46,093.00) and 401-70-510-5230-
00-60-000 ($10,000.00) for gasoline and 401-70-525-5230-00-60-000 ($33,907.00 for diesel).
THAT a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
P.R. No. 24146
01/27/2025 IM
READ, ADOPTED AND APPROVED this day of A.D. 2025 at a
Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie,
Mayor
ATTEST:
Sherri Bellard,
City Secretary
APPROVED AS TO FORM:
Roxann Pais Cotroneo,
City Attorney
APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY OF
FUNDS:
6d'�1-ut
Ronald Burto Ly a Boswell
City M er, CPM Director of Finance
Clifton Williams, CPPB Ivan Mit ell
Purchasing Manger Transit-Fleet Director
' P.R. No. 24146
01/27/2025 CN
Exhibit "A"
RENEWAL CONTRACT
FOR THE PURCHASE OF
DIESEL FUEL AND GASOLINE
THIS AGREEMENT, made this day of 2025,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 Tri-Con, Inc. of Beaumont, Texas, 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. Pursuant to Resolution No. 24-074,the City entered into a one-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 City can terminate this contract at its convenience
which includes, but is not limited to, finding not being available in any budget cycle within
thirty(30) days written notice.
2. 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.
3. The CONTRACTOR agrees to perform all the work described in the specifications and
contract documents and to comply with terms therein for the cost stated below.
Description OPIS Difference
Ultra Low Sulfur Diesel $ .0525
Gasoline $ .0525
Flat Charge For Split Delivery to More than One(1)Location. $37.00
4. The term "Contract Documents" means and includes the following:
a) Agreement
b) BID **
c) Addenda *
d) *
e) Specification *
f) Notice of Renewal
*These items were attached to the original letting contract.
5. This Agreement shall be binding upon all parties hereto and their respective heirs, executors,
administrators, successors and assigns.
Wage
6. 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 the day of , 2025.
OWNER
CITY OF PORT ARTHUR
By:
Ronald Burton, CPM
City Manager
ATTEST:
Sherri Bellard, City Secretary
Signed on the day of , 2025.
CONTRACTOR
Tri-Con,Inc.
By:
Print Name:
Title:
WITNESSED:
Print Name:
2IPage