TITLE
Recommendation to authorize City Manager to execute all documents necessary to amend Contract No. 32705 with Merrimac Energy Group, a Long Beach-based business, to increase the contract amount by $2,000,000, for a total contract amount not to exceed $13,000,000, and to extend the contract for the purchase of unleaded and diesel fuel, on the same terms and conditions afforded to Saddleback Valley Unified School District, until December 31, 2014. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager to execute an amendment to the contract with Merrimac Energy Group, extending the term to December 31, 2014 and increasing the contract authority by $2,000,000. The contract with Merrimac Energy Group is used by the Department of Financial Management, Fleet Services Bureau, for providing unleaded and diesel fuel for over 2,100 vehicles Citywide. The current contract expires July 2014.
On July 10, 2012, the City Council adopted a Resolution authorizing the City Manager to execute a contract with Merrimac Energy Group for the purchase of fuel in an amount not to exceed $5,500,000 for a one-year period, under the same terms and conditions provided to Saddleback Valley Unified School District. On July 16, 2013, the City Council authorized the City Manager to amend the contract extending the term date through July 2014, in an additional amount not to exceed $5,500,000. This second amendment will align the termination date of Contract No. 32705 with the termination date of the Merrimac-Saddleback agreement and continue to provide the City access to diesel and unleaded fuels through December 2014.
Fleet Services and the Purchasing Division will develop a new bid specification for a future fuel contract pursuant to the City Council action taken on April 3, 2012, tasking staff to explore Joint Purchasing Agreements and return to the City Council with the results.
This matter was reviewed by Deputy City Attorney Amy R. Webber on Ju...
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