AGENDA CAPTION:
Title
Consider approval of Resolution 2025-106R, authorizing a contract with Mansfield Oil, through the Sourcewell Purchasing Cooperative, for the provision of emergency response fuel, facility generator monitoring, and bulk fuel and fluids for use in city vehicles and equipment for an initial term of one year, with up to four additional annual renewals with an estimated cost of $150,000.00 per year for an estimated cumulative contract expense of $750,000.00; authorizing the City Manager, or her designee, to execute the contract and renewals on behalf of the city; and declaring an effective date.
Body
Meeting date: June 3, 2025
Department: Public Works
Amount & Source of Funding
Funds Required: 150,000.00
Account Number: Various. Budgeted annually.
Funds Available: 150,000.00
Account Name: Various. Budgeted annually.
Fiscal Note:
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Background Information:
The purpose of the contract with Mansfield Oil is two-fold. First, the contract provides emergency response fueling resources which includes bulk fuel tank delivery and facility generator monitoring for critical City facilities. The second purpose for this contract is to provide the City with significant cost savings on fuel and fluids by allowing for bulk purchase.
These services reduce exposure to hazards that occur during natural disasters such as floods, tornados, hurricanes, and snowstorms. As an example. Winter Storm Uri dumped record amounts of snow on Texas, with the frigid temperatures and severe weather impacting all 254 counties in the state in February 2021. Millions of Texans lost power. In San Marcos, consistent electric power was unavailable for several days and the City’s water and wastewater treatment plants were dependent on generator power to operate. Fleet crews worked 24 hours for several days to refuel those critical generators. Those generators were consuming fuel equal to the rate that staff could make a trip to a fuel station and return to refuel the generator.
In the past the City has depended on local fuel stations to reserve fuel for City use without a formal contract. The contract with Mansfield Oil provides a stable emergency fuel source and has the following benefits:
• Fuel Security and Continuity
o Guarantees fuel availability in times of crisis (natural disasters, response & recovery operations, pandemics, etc.).
o Prevents reliance on spot-market purchases, which may be unavailable or overpriced during emergencies.
• Operational Readiness
o Ensures that emergency vehicles, generators, and critical infrastructure (like hospitals or command centers) have the fuel they need.
o Reduces downtime due to fuel shortages, which can compromise life-saving operations
• Streamlined Logistics and Priority Access
o Establishes clear logistics and delivery protocols in advance, ensuring rapid and prioritized delivery of fuel to critical locations.
o May include clauses for priority service during regional or national emergencies.
• Scalability
o The bulk fuel contract can allow for quick scaling of supply to meet surging demand, especially when operations expand quickly during a major event
• Compliance and Coordination
o Ensures compliance with government regulations or emergency response standards (e.g., FEMA, TDEM).
o Supports coordination across agencies that may be part of a multi-jurisdictional response effort.
This contract will also provide the City with significant cost savings on the fuel and fluids needed for everyday operations of city vehicles and equipment by allowing for bulk purchase. An example is the City’s consumption of “DEF” or Diesel Exhaust Fluid. DEF is currently being provided to the City in individual containers. With this contract the City will be supplied DEF in 55-gallon drums at a much cheaper cost per unit.
The City is authorized by Chapter 271 of the Local Government Code to participate in cooperative purchasing programs. As Sourcewell is an approved cooperative purchasing program for the City, and as Sourcewell has awarded contract 121522-MNF to Mansfield Oil Company, the City of San Marcos is authorized to enter into a contract with Mansfield Oil Company for the provision of emergency response fuel , facility generator monitoring, and bulk fuel and fluids for use in city vehicles and equipment.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval.