TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Sean Roberts, Field Operations Manager
Nicholle Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Three-Year General Services Agreement with Merrimac Petroleum, Inc. dba Merrimac Energy Group for Bulk Fuel Purchases in an Amount Not-to-Exceed $3,250,000 (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 23-0133
B) APPROPRIATE FUNDS
Body
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RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 23-0133 approving a three-year agreement with Merrimac Petroleum, Inc. dba Merrimac Energy Group for bulk fuel purchases in an amount not to exceed $3,250,000; and
2. Authorize the City Manager to extend the agreement term for up to two additional one-year periods.
3. Appropriate $90,000 from the Fleet Management Fund.
FISCAL IMPLICATIONS:
The agreement under consideration with Merrimac Petroleum, Inc. dba Merrimac Energy Group (Merrimac) is to provide bulk fuel for three years, with two options to extend the term of the contract by up to one year for each instance. Staff anticipates that expenditures for services should not surpass $650,000 annually for the initial three-year term, with a total not exceeding $3,250,000 for the initial term of the agreement and any extensions.
An appropriation of $90,000 from the Fleet Management Fund's unreserved balance is necessary to fund the agreement for the remainder of the current fiscal year. Future years will be budgeted accordingly.
BACKGROUND:
The City maintains a fleet of nearly 300 public safety/emergency vehicles, vacuum trucks, and other vehicles that are imperative for daily operations, life safety, and regular maintenance of City infrastructure. This fleet consumes approximately 120,000 gallons of unleaded gasoline and diesel fuel annually.
Due to the continued vari...
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