City of San Antonio - File #: 13-1160

• File #: 13-1160
• Type: Purchase - Annual Contract
• In control: City Council A Session
• On agenda: 1/16/2014
• Posting Language: An Ordinance authorizing an Interlocal Agreement with VIA Metropolitan Transit and an Integration Agreement with Pinnacle Propane, LLC to provide the Building and Equipment Services Department and various City departments with HD-5 Propane Motor Fuel for an estimated annual cost of $122,000.00, funded with the Building and Equipment Services Department adopted budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Director, Finance]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

HD-5 Propane Motor Fuel


SUMMARY:
This ordinance authorizes an Integration Agreement with Pinnacle Propane, LLC, to provide the Building and Equipment Services Department and other various City departments with HD-5 Propane Motor Fuel for use by approximately 138 propane-powered vehicles and equipment for an estimated annual cost of $122,000.00.
This ordinance also authorizes an Interlocal Agreement with VIA Metropolitan Transit, by which the City will acquire the right to use the competitively procured contract between VIA and Pinnacle Propane, LLC.



BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the offer submitted by Pinnacle Propane, LLC to provide the BES and other various City departments with HD-5 Propane Motor Fuel via a cooperative contract with VIA Metropolitan Transit (VIA).

The City currently has three 18,000 gallon storage/dispensing facilities located in various sections of the city which are used to refuel approximately 138 propane-powered vehicles and equipment within the City's fleet. This purchase will provide HD-5 Propane Motor Fuel to support fueling needs for propane-powered vehicles and equipment which contribute to the delivery of City services.

The City and VIA previously entered into an Interlocal Agreement for Fuel Purchasing on October 21, 2010 under which VIA provided the City access to their agreement allowing the City to purchase HD-5 propane motor fuel. The City and Ferrell North America entered into an Integration Agreement for HD-5 Propane Motor Fuel on October 21, 2010 which expired on August 31, 2013.





ISSUE:
After completing a competitive invitation for bid issued on July 18, 2013, VIA entered into an agreement with Pinnacle Propane, LLC on October 22, 2013 for the delivery of HD-5 propane motor fuel for an initial term beginning November 1, 2013 a...