Report to Mayor and City Council
Tuesday, June 20, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO EXTEND THE TERM OF THE CONTRACT SERVICES AGREEMENT WITH SOUTHERN COUNTIES OIL CO. DBA SC FUELS FOR BULK PURCHASING OF GASOLINE AND DIESEL FUEL FOR ONE YEAR AT A NOT-TO-EXCEED COST OF $350,000, AND RESOLUTION NO. 23-100 TO INCREASE THE BUDGET FOR THE EXISTING TERM BY $50,000 (CITY COUNCIL)
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I. SUMMARY
Southern Counties Oil Company, dba SC Fuels ("SC Fuels") has been providing the City with bulk fuel (gasoline and diesel) since July 1, 2012. On June 19, 2018, the City approved a five-year contract with SC Fuels from July 1, 2018 through June 30, 2023 in the amount of $1,250,000 with an administrative option of City to extend the term for up to additional two years in one year increments (Exhibit No. 1; the "Agreement"). Staff is requesting that City Council approve Amendment No. 1 (Exhibit No. 2) to exercise the first option to extend the term of the Agreement for one year, with compensation not-to-exceed $350,000 for the one-year extension period.
Due to the steady rise of fuel prices and associated taxes, staff is also requesting adoption of Resolution No. 23-100 (Exhibit No. 3) to increase the FY 22-23 budget by $50,000, and a corresponding change included in Amendment No. 1 to the Agreement (to increase the Contract Sum by $50,000 for the existing term through June 30, 2023), to enable the City to pay all fuel invoices up to June 30, 2023.
II. RECOMMENDATION
Recommendation
Take the following actions:
1. APPROVE Amendment No. 1 to the Agreement with SC Fuels (Exhibit No. 2; the "Amendment").
2. AUTHORIZE the Mayor to execute the Amendment, following approval as to form by the City Attorney; and
3. ADOPT Resolution No. 23-100, "A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-23 BUDGET IN THE GENERAL FUND".
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and c...
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