Report to Mayor and City Council
Tuesday, September 03, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 2 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 $355,000 (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 to extend the term for up to an additional two years in one-year increments (Exhibit 1; the "Agreement")). On June 20, 2023, the City Council approved Amendment No. 1 to the Agreement (Exhibit 2), which exercised the City's first one-year option to extend and in doing so, increased the total Contract Sum to $1,650,000 and extended the term through June 30, 2024.
Staff is now requesting that City Council approve Amendment No. 2 to the Agreement (Exhibit 3) to exercise the City's second one-year option to extend the term of the Agreement, with the extension period beginning July 1, 2024 and continuing through June 30, 2025, and with compensation not-to-exceed $355,000 for the one-year extension period.
II. RECOMMENDATION
Recommendation
Take the following actions:
1. APPROVE Amendment No. 2 to the Agreement with SC Fuels (Exhibit 3; the "Amendment"); and
2. AUTHORIZE the Mayor to execute the Amendment, following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and consistent with the requirements of the law.
IV. BACKGROUND
In 2012, the City entered into a three-year contract with Southern Counties Oil Company, dba SC Fuels, for bulk provision of gasoline and diesel fuel to the City for the period of time from July 1, 2012, t...
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