Title
Consider and take action on a resolution authorizing an amendment to the agreement with Apache Oil Company to extend the term of the agreement for two months using Apache Oil's 2020 pricing rates (Director of Public Works)
Background:
Approval of this resolution will authorize the City Manager to execute a two-month extension with Apache Oil Company. This extension will allow staff time to complete the procurement process for a new vendor.
On June 23, 2015, the City Council authorized a two-year agreement with Apache Oil Company for various petroleum products. On May 9, 2017, the City Council authorized a three-year renewal agreement with Apache Oil Company which ran through June 23, 2020. At no additional cost, the City was able to extend the agreement through September 30, 2020.
While staff is completing its procurement process to select a new vendor, Apache has agreed to extend the agreement for two months using its 2020 pricing rates. The estimated expenditure for this amendment is not expected to exceed $120,000. Staff will present a new agreement for petroleum products once the procurement process has been finalized
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - 2nd Amendment with Apache Oil
4. Apache Oil 2020 pricing rates
5. Original Agreement (Res 2017-83)
6. First Amendment
FUNDING
{ } NOT APPLICABLE
{X} Funds are available in FY2021 from Motor Pool Fund. Funding in FY2021 totaling $120,000 are available from 1) account 40103600-51455 Fuel Inventory Expense, 2) account 40103600-51457 Fuel Inventory Expense-FS #3, 3) account 40103600-51458 Fuel Inventory expense-FS #4 and 4) account 10203600-52300 Vehicle Repair & Maintenance.
{ } Requires Budget Amendment to transfer from Account #_________to Account # _________
STRATEGIC PLANNING
{X} Develop and Maintain Our Infrastructure City