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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested: November 9, 2020 <br />001-General Fund <br />Source of Funds: <br />Requested By:Ray Mayo, Director <br />Department:Public Works <br />001-6146-515-9094 <br />Account Number: <br />$506,832.00 <br />Amount Budgeted: <br />ReportResolutionOrdinance <br />Amount Requested:$108,580.00 <br />Exhibits:Correspondencefrom ApacheOil Company, <br />Budgeted Item:YesNo <br />120-day fuel Estimate <br />SUMMARY& RECOMMENDATION <br />The Cityof La Portehas a contract for bulk diesel fuel and unleaded gasoline delivery <br />th <br />with SC Fuels, Inc.The current renewal contract ends January 72021, and was <br />scheduled to rebid in December 2020. <br />On September 29, 2020,SC Fuels contract carrierdelivered a load of unleaded fuel <br />that was contaminatedin some manner. SC Fuels acted promptly to remedy the <br />situation. On October 6, they sent notification that they were not inclined to accept <br />responsibility for the event. As a result, SC Fuels has ceased deliveries until the <br />situation is resolved. <br />The need for fuel is critical to the operation of the City, and the Purchasing Department <br />promptly secured a local distributor, Apache Oil, to serv <br />period. The total annual budget for fuel is $506,832.00.We have estimated the 120- <br />day expenditure at $108,580.00. The estimated expenditure for the interim period will <br />exceed $50,000.00,thus requiring approval by City Council. <br />Benefits:Operation of City services remains uninterrupted. Apache Oil is a local <br />supplier that has provided excellent bulk fuel service to the City of La Portein the past. <br />Liabilities:The time period or possibility for resolutionwith SC Fuels is undetermined. <br />Staff recommends approval of a Purchase Order <br />fuel needs for the interim period or until which time the contract can be re-bid. <br /> <br />