TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Department Director
Sean Roberts, Maintenance Manager
Mike Grafton, Fleet Supervisor
Erika King, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 With Merrimac Petroleum, Inc. dba Merrimac Energy Group for Bulk Fuel Purchases
(Public Works Director Lee).
ADOPT RESOLUTION NO. 22-0148
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Recommended Action
RECOMMENDATION:
Staff recommends City Council consider the adoption of Resolution No. 22-0148 approving Amendment No. 2 to the Agreement with Merrimac Petroleum, Inc. dba Merrimac Energy Group (Merrimac) to:
1. Extend the contract term to December 5, 2023.
2. Increase the not-to-exceed compensation from $290,000 to $540,000 for the term ending December 4, 2023.
FISCAL IMPLICATIONS:
Resolution No. 22-0134 will exercise the City's last optional extension year available under the Agreement, extending the term to December 5, 2023. The not-to-exceed compensation will also increase by $250,000 adjusting the contract total for the next term to $540,000. Sufficient funding for the contract is not completely available for the remainder of Fiscal Year 2022-2023 and will be brought back for City Council consideration as part of the first quarter budget update in December 2022.
BACKGROUND:
On December 5, 2018, the City Council approved an agreement for professional services with Merrimac to provide City fleet fuel services. The Parties allowed the Agreement to continue on a month-to-month basis pursuant to Section 2 through August 25, 2022.
On August 25, 2022, the Parties amended the Agreement (Amendment No. 1) to utilize the first of two optional one-year extensions.
DISCUSSION:
The City purchases an average of 8,000 gallons of fuel per month for its fleet of vehicles. Given the unprecedented increase in fuel prices that have occurred ...
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