Council of each city shall have power to permit, subject to any terms and conditions as the city may impose, any fire company, rescue company and ambulance company in the city to participate in purchase contracts for petroleum products entered into by the city. Fire company, rescue company and ambulance company participation in purchase contracts for petroleum products shall be subject to the condition that all prices shall be FOB. If permitted by council, a fire company, rescue company or ambulance company may participate in designated petroleum product contracts entered into by the city, subject to the fire company, rescue company or ambulance company:
(1) Having filed with the city clerk a request that it be authorized to participate in contracts for the purchase of petroleum products of the city.
(2) Having agreed that it will be bound by any terms and conditions imposed by the city.
(3) Having agreed that it will be responsible for payment directly to the vendor under each purchase contract.
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