TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34597 with Falcon Fuels, of Paramount, CA, and Contract No. 34598 with Merrimac Energy Group, of Long Beach, CA, for purchase and delivery of petroleum fuels, to increase the aggregate contract amount by $926,000, for a revised aggregate contract amount not to exceed $24,254,000, and extend the term to March 31, 2023. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 34597 with Falcon Fuels and Contract No. 34598 with Merrimac Energy Group, to continue the furnishing and delivery of petroleum fuels. These fuels include unleaded gasoline, renewable diesel fuel, and jet fuel that support vehicles and equipment performing department operations throughout the City of Long Beach (City). Petroleum fuels are used to power the City fleet which includes emergency response and other vehicle types as well as marine vessels and helicopters. These amendments will add funds and extend the term of the contracts for an additional two months.
The original fuel contracts were approved by City Council on April 18, 2017, for three years, with two additional one-year renewals. On December 11, 2018, the City Council approved an amendment to add $1,150,000 annually for a total annual amount not to exceed $4,150,000. On April 19, 2022, an amendment was approved by the City Council to add funds of $2,300,000 and to extend the contracts to October 31, 2022, to allow for time for new fuel contracts to be established.
On September 13, 2022, another amendment was approved by the City Council to add funds of $1,428,000 and to extend the contracts to January 31, 2023. However, due to staff error, the total aggregate contract amount approved by the City Council did not accurately reflect the aggregate spending necessary to execute the contract. Inclusive of this recommendation, total aggregate contract authority in the amount of $24,254,000 is n...
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