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2000-045-RES DECLARING THE CITY'S CURRENT FUEL CONTRACT 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, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section I. That the findings set out in the preamble of this resolution are hereby in all things approved. Section 2. That, for the reasons set out in the preamble of this resolution, the City Council does hereby declare the contract by and between the City of Paris and ARW, Inc., d/b/a TWT Holdings, Ltd., in substantial breach to the detriment of the City of Paris. Section 3, That the Finance Director of the City of Paris is hereby directed to invoke the City's rights under the City's current contract with ARW, Inc. d/b/a TWT Holdings, Ltd., to seek emergency fuel purchases elsewhere, and the City Council does hereby declare an emergency and authorize the aforesaid Finance Director to make emergency purchases of fuel for use in City vehicles until such time as bids can be received from qualified bidders for the supply of fuel to the City of Paris. Section 4. That the City Finance Director is hereby instructed to seek bids for future supplies of fuel on a long term basis consistent with the needs and requirements of the City of Paris, such bids to be taken in the ordinary, customary fashion for same, and to return said bids for award of contract to the City Council at a future date. Section 5. That by taking this action, the City Council does hereby reserve unto the City all rights and remedies available to the City under its current contract with ARW, Inc., d/b/a TWT Holdings, Ltd., as well as all other rights or remedies available to the City under state law for the breach of the aforesaid contract, and no action undertaken by the City Council pursuant to this resolution shall in any way be construed as a waiver or relinquishment of the City's rights and remedies available under the contract or state law. Section 6, That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED, this 10th day of April, 2000. ATTEST: . Mattie Cunningham, City Clerk APPROVED AS TO FORM: