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Home My WebLink AboutPR 24537: CONTRACT FOR DYED DIESEL FUEL Ciry of orr rthitri www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: September 16, 2025 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Clifton Williams, Purchasing Manager RE: PR# 24537: Contract for Dyed Diesel Fuel Introduction: The intent of this Agenda Item is to seek the City Council's authorization for the City Manager to renew the contracts with Tri-Con, Inc. of Beaumont, Texas and Sun Coast Resources, Inc. of Houston, Texas for dyed diesel fuel for an additional year. Background: Dyed diesel fuel is used for off-road vehicles and equipment. Departments that used this fuel is Public Works, Utility Operations,and Pleasure Island.City Council awarded the contracts per Resolution 23-353.City Council awarded the second year(first renewal)per Resolution 24-390. The City is satisfied with the contract and would like to renew for one final additional year. Tri-Con, Inc. was awarded the contract for deliveries less than 3,500 gallons and Sun Coast Resources, Inc. was awarded the contract for deliveries of 3,500 gallons or more. Budget Impact: Department fuel accounts will be used: 001-21-055-5230-00-70-00 (DRAINAGE), 403-50-320-5230-00-00- 00 (LANDFILL), 450-60-410-5230-00-00-000 (PLEASURE ISLAND), 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). Recommendation: It is recommended that the City of Port Arthur's City Council approve PR#24537 authorizing the City Manager to renew the contracts with Tri-Con, Inc. of Beaumont, Texas and Sun Coast Resources, Inc. of Houston Texas for one additional year. "Remember,we are here to serve the Citizens of Port Arthur" 444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 S:\Purchasing\Resolutions\2025 Resolution\Dyed Diesel Fuel Renewal Memo.docx P.R. No.24537 09/16/2025 BDB Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE THIRD YEAR (FINAL RENEWAL) OF THE DYED DIESEL FUEL CONTRACTS WITH SUNCOAST RESOURCES, INC. OF TEXAS AND TRI-CON HOUSTON, , INC. OF BEAUMONT, TEXAS FOR THE COMBINED TOTAL NOT TO EXCEED AMOUNT OF $900,000. FUNDING IS AVAILABLE IN 001-21-055-5230-00-70-000 (DRAINAGE), 403-50-320-5230-00-00-000 (LANDFILL), 450-60-410-5230- 00-00-000 (PLEASURE ISLAND), 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.23-353 the City Council awarded the purchase of dyed diesel fuel from Sun Coast Resources,Inc. of Houston,Texas and Tri-Con Inc. of Beaumont, Texas; and, WHEREAS,pursuant to Resolution 24-390,the City of Port Arthur renewed the purchase of dyed diesel fuel for the second year(first renewal); and, WHEREAS, Sun Coast Resources, Inc. was awarded a contract for deliveries of 3,500 gallons or more; and, WHEREAS, Tri-Con Inc. bid was awarded a contract for deliveries of less than 3,500 gallons; and, WHEREAS, the City would like to renew the contracts with Sun Coast Resources, Inc. for deliveries of 3,500 gallons of dyed diesel fuel or more, and Tri-Con Inc. for deliveries of less than 3,500 gallons of dyed diesel fuel. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS THAT,the facts and opinions in the preamble are true and correct; and, P.R. No.24537 09/16/2025 BDB Page 2 of 3 THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to execute the third year (final renewal) from October 19, 2025 to October 18, 2026 of the contract with Sun Coast Resources, Inc. of Houston, Texas, (Exhibit A) and Tri-Con, Inc., of Beaumont, Texas (Exhibit B) for a combined total not to exceed $900,000; and, THAT,funding is available in 001-21-055-5230-00-70-000(Drainage),403-50-320-5230- 00-00-000 (Landfill), 450-60-410-5230-00-00-000 (PLEASURE ISLAND), 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); and, 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 October 2025, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor ; Councilmembers: NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, City Secretary P.R.No.24537 09/16/2025 BDB Page 3 of 3 APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED FOR ADMINISTRATION: Ronald on, CPM Cit anager APPROVED AS TO AVAILABILITY OF FUNDS: ' 162ii"-E Lyn Boswell Director of Finance 1A/LbAA\. C ifton Williams Purchasing Manager EXHIBIT "A" CONTRACT RENEWAL FOR DYED DIESEL FUEL FOR PUBLIC WORKS, PLEASURE ISLAND, AND UTILITY OPERATIONS THIS AGREEMENT,made this day of October, 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 Sun Coast Resources,Inc. 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.23-353,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 third year (final renewal). The term of this Agreement shall be from October 19, 2025 to October 18, 2026. The City can terminate this contract at its convenience which includes, but is not limited to, funding 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 in the Specifications. 3. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms in the amounts stated in Contract 23-353. 4. The term "Contract Documents" means and includes the following: 1) Renewal Agreement 2) General Information* 3) Specifications* 4) Bid* 5) Notice of Award* 6) Notice to Proceed* *These items were attached to original contract. This agreement is only included in this renewal. 5. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. 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 written above. Signed on the day of 2025 ATTEST CITY OF PORT ARTHUR BY CITY SECRETARY PRINT NAME: TITLE: Signed on the day of , 2025 ATTEST SUN COAST RESOURCES, INC. BY CITY SECRETARY PRINT NAME: TITLE: EXHIBIT " B" CONTRACT RENEWAL FOR DYED DIESEL FUEL FOR PUBLIC WORKS, PLEASURE ISLAND, AND UTILITY OPERATIONS THIS AGREEMENT,made this day of October, 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. 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.23-353,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 third year (final renewal). The term of this Agreement shall be from October 19, 2025 to October 18, 2026. The City can terminate this contract at its convenience which includes, but is not limited to, funding 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 in the Specifications. 3. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms in the amounts stated in Contract 23-353. 4. The term "Contract Documents"means and includes the following: 1) Renewal Agreement 2) General Information* 3) Specifications* 4) Bid* 5) Notice of Award* 6) Notice to Proceed* *These items were attached to original contract. This agreement is only included in this renewal. 5. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. 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 written above. Signed on the day of 2025 ATTEST CITY OF PORT ARTHUR BY CITY SECRETARY PRINT NAME: TITLE: I Signed on the day of , 2025 I ATTEST TRI-CON, INC. BY CITY SECRETARY PRINT NAME: