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Home My WebLink AboutPR 16566: SUN COAST RESOURCES, INC. DYED, OFF-ROAD DIESEL PUBLIC WORKS DEPARTMENT COUNCIL ACTION MEMO TO Stephen B. Fitzgibbons, City Manager FROM Ross E. Blackketter, P.E., Director of Public Works SUBJECT P.R. #16566 — Dyed, Off -Road Diesel (Tabled) DATE 03 August 2011 RECOMMENDATION: It is recommended that the City Council amend Proposed Resolution No. 16566, to NOT renew the contract for dyed, off -road diesel to Sun Coast Resources, Inc., and authorizing readvertising for bids. BACKGROUND: Due to the concerns expressed at the last Council meeting, I recommend that the City Council amend this proposed resolution to not renew the contract with Sun Coast Resources, Inc. for dyed, off -road diesel, and authorize Purchasing to advertise for a new contract for this service. BUDGETARY /FISCAL EFFECT: None. EMPLOYEE /STAFF EFFECT: None. SUMMARY It is recommended that the City Council amend Proposed Resolution No. 16566, to NOT renew the contract for dyed, off -road diesel to Sun Coast Resources, Inc., and authorizing readvertising for bids. ,2e, / Ross E. Blackketter, P.E. Director of Public Works REB /reb S:\ engineer \Documents \Contracts \Diesel \SC Off -Road Diesel CAM- 11a.docx 1 P.R. 16566 07/18/11 reb RESOLUTION NO. A RESOLUTION AUTHORIZING THE 2 YEAR (1 RENEWAL) FOR THE CONTRACTS BETWEEN THE CITY OF PORT ARTHUR AND SUN COAST RESOURCES, INC. FOR DYED, OFF -ROAD DIESEL. ACCOUNT NO. 403 - 1274 - 533.24 -00. WHEREAS, the City purchases dyed, off -road diesel for use at the City landfill; and, WHEREAS, last year, the City entered into a one year agreement with the option to renew for two (2) additional years with Sun Coast Resources, Inc. for dyed, off -road diesel; and, WHEREAS, the bid was based on a price differential above the Oil Price Information Service (OPIS) PADD 3 Report for the Beaumont /Port Arthur area; and, WHEREAS, Sun Coast Resources, Inc. has agreed to maintain the bid price of $0.04 above OPIS (see Exhibit "A "); now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the facts and opinions in the preamble are true and correct; and, THAT, the City Manager is hereby authorized to execute the second year of a contract, attached hereto as Exhibit "B ", with Sun Coast Resources, Inc. THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED this the day of , A.D. 2011 at a meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor Councilmembers: P.R. 16566 Page 2 Noes: Mayor ATTEST: City Secretary APPROVED AS TO FORM: '1 (City A orn / APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY OF FUNDS: P (_ 2e-tc-41 Stephen Fitzgibbons Deborah Echols, CPA City Manager Director of Finance Ross E. Black etter, P.E. Shawna Tubbs, CPPB Director of Public Works Purchasing Manager S:\engineer\Documents\Contracts\Diesel\PR16566.docx EXHIBIT A Mai 19 2011 8:O4AM HP LASERJET FAX P, 2 DELORi$ *TX:A :E' PRINCE MAYOR STEPHEN 1rITZOIBBONS MORRIS ALBRIGHT, !it. MAYOR PRO TEM CITY MANAGER COUNCIL N.12MB21U City of = SHERRI BELCARD ACTING CITY SECRETARY JAC ri DHAT1IkJ i, JR. 0,IZABE71-1 "LJ2" SELL8R MARTN ace() O t r t$ u r til Ttz>rr o ,TOH1 3EARD. JR. T CITY ATTOIts1'EY ROB 'kT E. W ILIAMSON Texas D. KlY WISE THOMAS I. HHENDERSON Sun Coast Resources, Inc. - Dyed, Off-Road Diesel Original Contract Period: June 2, 2010 to June 1, 2011 Original Contract Price: Dved Diesel $0.04 above OPTS Proposed Contract Renewal Period: June 2, 2011 to June 1, 2012 I agree to renew my existing contract for the contract price and proposed renewal period listed above. ❑ I disagree (if so, please give brief explanation) • • '4 se. PC - 4.t2r - ° 1l3 336 - 46s Printed Name , 1 Telephone No k • J . ∎ � �- +'vLQ,t . a �r _ 57/0 Si gn nature Date Must be signed by a person having authority to bind the firm in a contract. Purchasing Division /Finance 1Aelgut rent t Pturbasittevfnnnster' Shevena Tubbs, CFPB P.O. Box 10891444 4th Street I Port Arthur, Texas 776411 409.983.8160 I Fax 409.989.8291 EXHIBIT B CONTRACT FOR DYED, OFF -ROAD DIESEL THIS AGREEMENT, made this 26 day of July , 2011, 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. a(n) corporation herein acting Individual, firm, partnership, or corporation by and through Deniese Palmer- Huggins 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. Last year, the City entered into a one -year contract with the option of renewal for two additional years. The parties hereby agree to exercise said option for a second year. 2. The term of this Contract shall be from 26 July 2011 to 26 July 2012. It shall be renewable by mutual agreement for one (1) additional one -year period. The bid was based on a price differential above the Oil Price Information Service (OPIS) PADD 3 Report for the Beaumont /Port Arthur area. Each subsequent yearly contract renewal shall require approval of the City Council. 3. 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. 4. The CONTRACTOR agrees to perform all the work described in the Specifications and contract documents and comply with the terms therein for unit prices as stated below: DYED, OFF -ROAD DIESEL Unit Cost $ 0.04 above OPIS 5. The term "Contract Documents" means and included the following: (A) Agreement (B) Advertisement for Bids (C) General Information (D) Specifications (E) Bid (F) Bidder's Information Sheet S: \engineer \Documents \Diesel \Sun Coast Diesel Contract- 11.docx 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 7. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, the Agreement in two (2) copies, each of which shall be deemed an original on the date first above written. OWNER CONTRACTOR BY: BY: City Manager Stephen B. Fitzgibbons Deniese Palmer - Huggins Printed Name Printed Name S: \engineer \Documents \Diesel \Sun Coast Diesel Contract- 11.docx