The Fleet Services Division of the Environmental & Neighborhood Services Department is responsible for the procurement of the City’s gasoline and diesel fuel. Since FY 2010, fuel provider services for the City of Sugar Land have been procured through inter-local agreements. This type of agreement leverages the purchasing potential of governmental entities. All contracts are competitively bid, and contracts are awarded in compliance with state procurement laws and regulations.

By utilizing an inter-local agreement with Harris County, the City of Sugar Land can directly contract with Sun Coast Resources for bulk gasoline (Job No. 13/0257) and diesel (Job No. 13/0124) fuel. According to this contract, the commodity fuel prices will be provided by the Oil Price Information Service (OPIS) which is an industry recognized petroleum product commodity price tracking service. The commodity price is dictated by many factors including the world market, supply and demand, natural disasters, etc.; all of which are tracked by OPIS. Based on the fuel order volume, there are also fixed delivery fees and nominal environmental fees in addition to the per gallon price. The pricing provided by Sun Coast Resources under this contract has been researched and found to be a good value for the City.

In FY 2017, the City’s fuel expenditures were $548,899. Though the value of this contract is $900,000, the City is under no obligation to spend the entire amount but would have the flexibility to purchase additional fuel in the event of an emergency.

The Environmental & Neighborhood Services Department recommends the City Council authorize expenditures in the maximum amount of $900,000 with Sun Coast Resources utilizing the existing inter-local agreement with Harris County for FY 2018 fuel supplier services. Budgeted funding for this expenditure is located within each departments FY 2018 operating budget.