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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: ---? 7) 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