2000-045-RES DECLARING THE CITY'S CURRENT FUEL CONTRACT

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RESOLUTION NO. 2000-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, DECLARING THE CITY'S CURRENT FUEL CONTRACT WITH ARW, INC., D/B/A TWT HOLDINGS, LTD., TO BE IN BREACH; AUTHORIZING THE CITY FINANCE DIRECTOR TO MAKE EMERGENCY PURCHASE OF FUELS OUTSIDE SAID CONTRACT; AUTHORIZING THE FINANCE DIRECTOR OF THE CITY OF PARIS TO SEEK NEW BIDS FOR A LONG TERM FUEL SUPPLY CONTRACT FOR THE CITY OF PARIS; RESERVING THE CITY'S RIGHTS AND REMEDIES UNDER ITS EXISTING AGREEMENT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris, Paris, Texas, has previously awarded a contract to ARW, Inc., now doing business as TWT Holdings, Ltd., for the purchase of fuels for use in City vehicles; and, WHEREAS, TWT Holdings, Ltd., has notified the Finance Director of the City of Paris that it will not honor its obligation under the current contract to continue to sell fuel to the City under the conditions specified in the bid by ARW, Inc., requiring the fuel supplier not to bill the City for federal fuel taxes from which the City is exempt; and, WHEREAS, waiver of the requirement for the fuel supplier to provide the City fuel at a price exempt from federal fuel taxes will work a financial hardship and disadvantage to the City in that it will cause the City to pay a much higher price for its fuel, and require the City to await reimbursement of the amount of the federal fuel tax from the federal government, thereby disadvantaging the City for loss of use of its monies during said time frame; and, WHEREAS, the requirement to sell the fuel to the City exempt from the federal fuel taxes was a substantial requirement of the contract with ARW, Inc., and the failure to abide by said requirement constitutes a significant breach of said contract; and, WHEREAS, the Finance Director of the City of Paris has advised TWT Holdings, Ltd. of the City's position regarding said substantial breach. and TWT Holdings, Ltd., refuses to honor the requirements of the contract; and, WHEREAS, the Finance Director of the City of Paris desires to declare the outstanding contract with ARW, Inc., d/b/a TWT Holdings, Ltd., in substantial breach and desires to invoke the right of the City of Paris under said contract to seek purchases of fuel from other suppliers, without waiving and at the same time reserving the City's rights under its prior agreement with ARW, Inc.; NOW, THEREFORE,