Ordinance No. 12,011ORDINANCE NO. 12,011
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE RENEWAL OF THE ANNUAL GASOLINE AND
DIESEL FUEL CONTRACT WITH KENDRICK OIL CO.; AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF ONE MILLION
SEVENTY THOUSAND FIVE HUNDRED NINETY -EIGHT AND 37/100
DOLLARS ($1,070,598.37); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, Oil Products Distribution, Ltd., was awarded the Annual Gasoline and Diesel
Fuel Contract on January 12, 2006, pursuant to competitive bidding procedures, which contract
included an option by the parties to renew for additional one -year periods; and
WHEREAS, such contract was renewed November 20, 2006, November 19, 2007,
September 22, 2008, and August 13, 2009; and
WHEREAS, such contract was assigned from Oil Products Distribution, Ltd., to Kendrick
Oil Co., effective August 1, 2010; and
WHEREAS, the City Council consented to such assignment and renewed the Annual
Gasoline and Diesel Fuel Contract with Kendrick Oil Co., on July 22, 2010; and
WHEREAS, such contract with Kendrick Oil Co., was renewed on August 11, 2011; and
WHEREAS, the agreement can be renewed for an additional one -year term; and
WHEREAS, Kendrick Oil Co. has indicated its willingness to renew the contract for an
additional year under the same terms and conditions with the same profit margin; and
WHEREAS, the Administration has reviewed the market conditions and recommends
renewal as being in the best interest of the City; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown hereby renews the Annual
Gasoline and Diesel Fuel Contract with Kendrick Oil Co., and authorizes payment in the amount of
ONE MILLION SEVENTY THOUSAND FIVE HUNDRED NINETY -EIGHT AND 37/100
DOLLARS ($1,070,598.37).
Section 2: The amount authorized in Section 2 includes a 25% increase to the original
contract to allow for the fluctuation in usage and pricing in the market, which was authorized under
the original contract and/or renewal thereof.
Section 3: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative voteqokffie City Council of} Se City
of Baytown this the 23`d day of August, 2012. /.i ��
APPROVED AS TO FORM:
t9NACIO RAMIREZ, SR., CA Attorney
R: \Karen \Files \City Counci1\0rdinances\2012\August 23\ RenewAnnualGasoline &DieselFuelConlract.doc