TO: Mayor and Commissioners
FROM: Susan Goebel-Canning, Public Works Director
THROUGH: Mark R. Lauzier, City Manager
DATE: October 2, 2018
Title
APPROVAL OF AMENDMENT NO. 1 TO THE PURCHASE AND DELIVERY OF BULK GASOLINE AND DIESEL FUEL AGREEMENTS WITH MACMILLAN OIL COMPANY, INC. AND PETROLEUM TRADERS CORPORATION TO REVISE THE CONTRACT VALUE LANGUAGE IN THE AGREEMENTS AND INCREASE THE APPROVED NOT-TO-EXCEED CONTRACT VALUE BY $400,000 THROUGH JUNE 6, 2020
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Recommended Action:
Recommendation
Motion to approve Amendment No. 1 to the Purchase and Delivery of Bulk Gasoline and Diesel Fuel Agreements with Macmillan Oil Company, Inc. and Petroleum Traders Corporation to revise the contract value language in the Agreements and increase the approved not-to-exceed contract value by $400,000 through June 6, 2020.
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Background:
On June 6, 2017, the City of Delray Beach (City) Commission approved a contract award to Macmillan Oil Company, LLC (Macmillan) and Petroleum Traders Corporation (PTC) for the purchase and delivery of gasoline and diesel fuel pursuant to ITB No. 2017-047 in a total amount not-to-exceed $3,000,000 through June 6, 2020 (Agreement). The original approval stated a maximum annual amount the City could spend per contractor, which was $740,000 for Macmillan and $240,000 for PTC. To align with the City’s current procedures, staff requests approval of Amendment No. 1 to remove the contract value language in the Agreements. This will allow the City to purchase fuel from either contractor up to the total approved contract value rather than having a spending limit by contractor and year.
Staff recently reassessed the City’s fuel needs and now estimates a higher usage than originally forecasted. A breakdown of estimated gallon usage, by user department, is below. A contingency is also requested to allow for fuel price fluctuations. Therefore, in addition to revising the contract value from the Agreements, staff requests to increase the appr...
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