HomeMy WebLinkAboutContract 53314-R4CSC No. 53314-R4
CITY OF FORT WO TH
CONTRACT RENEWAL NOTICE
October 31, 2023
Pinnacle Petroleum, Inc.
Attention: Liz McKinley
16651 Gemini Lane
Huntington Beach, CA 92647
Re: Contract Renewal Notice
Bid No. 19-00037 Contract No. CSC No. 53314 (the "Contract")
Renewal Term No. 4: January 1, 2024 to December 31, 2024
The above referenced Contract with the City of Fort Worth expires on December 31, 2023
(the "Expiration Date"). Pursuant to the Contract, the Contract may be renewed under the same
terms and conditions. This letter is to inform you that the City is exercising its right to renew the
Contract for an additional one (1) year period, which will begin immediately after the Expiration
Date. All other terms and conditions of the Contract remain unchanged. Please return this signed
acknowledgement letter, along with a copy of your current insurance certificate, to the
address set forth below, acknowledging receipt of the Contract Renewal Notice. Failure to
provide a signed acknowledgment does not affect the renewal.
Please log onto PeopleSoft Purchasing at http://fortworthtexas.aov/purchasing to ensure
that your company information is correct and up-to-date.
If you have any questions concerning this Contract Renewal Notice, please contact me at
the telephone number listed below.
Sincerely,
Sylvia Flores
Contract Compliance Specialist
City of Fort Worth
Property Management Department
(817) 392-8086
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal — Pinnacle Petroleum, Inc. Page 1 of 2
CSC No.
ACCEPTED AND AGREED:
CITY OF FORT WORTH
Naha WG of
By: Dana Burghdoff (Nov , 2023 18:16 CST)
Name: Dana Burghdoff
Title: Assistant City Manager
APPROVAL RECOMMENDED:
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the
person responsible for the monitoring and
administration of this contract, including
ensuring all performance and reporting
requirements.
ByEli ana Guevara e a o Denise Garcia Nov 3, 3 10 CDT)
Name: Denise Garcia
Title: Purchasing Manager
APPROVED AS TO FORM AND
By: /z� LEGALITY:
Name: Ricardo Salazar
Title: Interim Property Management Director _
,aaavonb `'� 7U I
,oa FORT II
ATTEST: ���F°° °°oodad By:
ao
:o o=d Name: Kevin Anders
Pvo g d
o*� Title: Assistant City Attorney
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b .�uc� aIIIIII nexp54ap
By:
Name: Jannette S. Goodall
Title: City Secretary
Pinnacle Petroleum, Inc.
Liz McKinley
By:
Liz McKinley (Oct 31, 2023 11:01 PDT)
Name: Liz McKinley
Title: President
CONTRACT AUTHORIZATION:
M&C: 19-0413
Date Approved: 12/17/2019
Form 1295 Certification No.: 2019-558741
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal — Pinnacle Petroleum, Inc. Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/17/19 M&C FILE NUMBER: M&C 19-0413
LOG NAME: 13PMOTOR AND AVIATION FUEL LSJ PMD
SUBJECT
Award a Multiple National Award and Authorize Execution of Non -Exclusive Agreements with Mansfield Oil Co. of Gainesville, Inc., Martin Eagle
Oil Company, Inc., Truman Arnold Companies, Pinnacle Petroleum, Inc., and Petroleum Traders Corporation in an Annual Amount Up to
$12,000,000.00 for Motor Fuels and Aviation Fuels for the Property Management Department and Other Public Agencies; Authorize Execution of
a Rebate Agreement with National Intergovernmental Purchasing Alliance Company d/b/a OMNIA Partners, Public Sector (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Award a multiple national award to Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman Arnold Companies, Pinnacle
Petroleum, Inc., and Petroleum Traders Corporation as suppliers of motor and aviation fuels for public agencies in all forty-eight contiguous states
in the United States;
2. Authorize Execution of Non -Exclusive Agreements with Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman
Arnold Companies, Pinnacle Petroleum, Inc., and Petroleum Traders Corporation in an annual amount up to $12,000,000.00 for Motor and
Aviation Fuels for the Property Management Department; and
3. Authorize Execution of a Rebate Agreement with National Intergovernmental Purchasing Alliance Company d/b/a OMNIA Partners, Public
Sector.
DISCUSSION:
The Property Management Department and other public agencies throughout the United States will use these agreements to obtain unleaded,
diesel, Jet -A fuels, and alternative fuels required in the DFW nonattainment area to supply and operate equipment. No guarantee was made that a
specific amount of these fuels would be purchased. Unleaded and diesel fuel will be used by various City departments. The Jet -A aviation fuel will
be used by the Police Department.
The City previously awarded separate agreements for unleaded fuels and diesel fuels on December 2, 2014 (M&C P-11056) and for Jet -A
aviation fuel on June 7, 2011 (M&C P-11716). The previous Agreements were competitively bid. During the previous year, the City purchased
approximately $5,370,552.18 of motor fuels and approximately $42,643.00 of Jet -A aviation fuels. The additional estimated annual amount listed
in this action is requested to cover potential increases in prices and volumes over the five year term of the Agreement. A price change of 50 cents
per gallon can impact the annual expenditures by $1,000,000.00.
Other public agencies participating in the previous agreements have purchased approximately 44,194,959 gallons of motor fuels. The City of Fort
Worth expects to save approximately $45,000.00 annually over previous agreements as a direct result of the increased volume of participation of
the other public agencies.
Under the Rebate Agreement, the City of Fort Worth will receive a minimum of 8.333 percent of a one -cent administration fee that is paid to
National Intergovernmental Purchasing Alliance d/b/a OMNIA Partners, Public Sector by the petroleum vendors for each gallon of fuel sold under
these national cooperative contracts. This rebate could generate approximately $50,000.00 annually in revenue to the City. The City will have no
liability or responsibility for purchases by other public agencies. The Non -Exclusive Agreements were bid as a National Cooperative Purchasing
Request for Proposals (RFP) to develop and encourage cooperative purchasing efforts to reduce the cost of motor and aviation fuel to the City
and other public agencies. The RFP included estimated annual quantities from current public agencies using the contract and allowed for
quantities additional new agencies may have under the contract with a total estimated quantity of 50 million gallons. The RFP evaluation factors
included responsiveness and clarity of proposal, ability to meet City of Fort Worth specifications, the National Program, vendor qualifications and
contract cost. Representatives of the City's Property Management Department, Fire, Police, Code Compliance, Transportation and Public Works
and Water Departments were invited to participant in the evaluation. However, only Purchasing Division, Property Management Department, and
Code Compliance participated in the evaluation of the proposals received and found all five participating fuel providers qualified in multiple
categories; Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman Arnold Companies, Pinnacle Petroleum, Inc., and
Petroleum Traders Corporation to be the best evaluated firms for award of the agreements.
ADVERTISEMENT - A Request for Proposals (RFP) was advertised in the Fort Worth Star-Telearam on August 21, 2019, August 28, 2019,
September 4, 2019, September 11, 2019, September 18, 2019, September 25, 2019 and October 2, 2019. Thirteen vendors were solicited from
the purchasing database; five responses were received.
M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the
M/WBE Office, in accordance with the BIDE Ordinance, because the purchase of goods or services is from sources where subcontracting or
supplier opportunities are negligible.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to
$50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.
AGREEMENT TERM - Upon City Council approval, these Agreements shall have an initial term of five years beginning on January 1, 2020 and
ending on December 31, 2020.
RENEWAL OPTIONS - These Agreements may be renewed for up to four successive one-year terms at the City's option. This action does not
require specific City Council approval, provided the City Council has appropriated sufficient funds to satisfy the City's obligation during the renewal
term.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations funds are available in the current operating budget, as
appropriated, and that contingent on the approval and the adoption of the Fiscal Year 2021 Budget by the City Council, funds will be available in
the Fiscal Year 2021 Operating Budget, as appropriated, in the Fleet & Equipment Services (Fleet & Equip Serv) Fund. Prior to an expenditure
being incurred, the Property Management Department has the responsibility to validate the availability of funds.
Submitted for Citv Manaaer's Office bv: Kevin Gunn 2015
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Cynthia Garcia 8525
LaKita Slack -Johnson 8314