HomeMy WebLinkAboutPR 18276: INCREASE IN BLANKET ORDER FOR ULTRA LOW SULFUR DIESEL FUEL FROM PETROLEUM TRADERS INTEROFFICE MEMORANDUM
To: John A Comeaux, P.E., Interim City Manager
From: Colleen Russell, Director of Transit
Tom Kestranek, Transit Manager
Subject: P.R. NO.18276. Ultra Low Sulfur Diesel Fuel Purchase
Date: 04/02/2014
Recommendation:
It is recommended the City Council approve the Proposed Resolution NO.18276. This
Resolution would authorize the increase of Blanket Order #171989 in the amount of
$4,935.06..
Background:
In January 2013 the City of Port Arthur enter into a contract with Petroleum
Traders Corporation of Fort Wayne, Indiana. The Contract authorized the
purchase of ultra low sulfur diesel fuel in an amount not to exceed $300,000.00.
This estimate was based on the previous year's (2012) usages. However, with
the rising cost of fuel and the receipt of new vehicles the original yearly
estimate was exceeded by $4,935.06.
1
Budgetary/Fiscal Effect:
Funds for Diesel Fuel were approved by the City Council in the Transit Department's
2014 Fiscal Budget, account: 401 - 0000 - 142.10 -00.
Staffing/Employee Effect:
No anticipated effect on staffing is expected with this action.
Summary:
It is recommended the City Council approve the Proposed Resolution NO.18276. This
Resolution would authorize the increase of Blanket Order #171989 in the amount of
$4,935.06.
Colleen Russ • 11
Director of Transit
2
P. R. NO. 18276
04/02/2014 ACB
Page 1 of 2
RESOLUTION NO.
A RESOLUTION AUTHORIZING AN INCREASE IN THE EXISTING
BLANKET ORDER FOR ULTRA LOW SULFUR DIESEL FUEL FROM
PETROLEUM TRADERS CORPORATION; FUNDS AVAILABLE IN
ACCOUNT 401 - 000 - 142.10.00
WHEREAS, per Resolution 13 -031, the City of Port Arthur entered into a contract with
Petroleum Traders Corporation of Fort Wayne, Indiana, for the purchase of ultra low sulfur
diesel fuel in an amount not to exceed $300,000.00; and
WHEREAS, this estimate was based on the previous year's usage; and
WHEREAS, with the rising cost of fuel and the receipt of new vehicles, the original
yearly estimate was exceeded by $4,935.06; and
WHEREAS, the total amount authorized for the year by blanket purchase order needs to
be increased by $4,935.06 to a new total of $304,935.06.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PORT
ARTHUR:
THAT, that the facts and opinions in the preamble are true and correct.
THAT, the City Council hereby authorizes an increase to the existing blanket purchase
order by $4,935.06 to a new total of $304,935.06 to cover the unexpected fuel cost.
THAT a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
P.R. NO. 18276
04/02/2014 ACB
Page 2 of 3
READ, ADOPTED AND APPROVED this day of April A.D. 2014, at a Meeting
of the City Council of the City of Port Arthur, Texas, by the following vote: AYES
Mayor:
Councilmembers: ;
;
;
NOES: .
Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
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C'ty Atto ey \ J V
0-.2 Aa4gi.
APPROVED FOR ADMINISTRATION:
John A. Comeaux, P.E.,
Interim City M.r
4 i .....00 .
Director of Tran •, it
P.R. NO. 18276
04/02/2014 ACB
Page 3 of 3
APPROVED AS TO AVAILABILTY OF FUNDS:
/6.424d-2:/4.e4
Director of Finance
/17:-
Purchasing Manager