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| ARF- 7413 |
Regular Agenda Item 4. F.
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| Special BOS Meeting |
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| Information |
| Request/Subject |
| Approval of Amendment No. 4 to Contract No. 050619 with Senergy Petroleum, LLC, and to ratify staff's authorization to increase the contract for bulk fuel and lubricants, by $100,000 until July 22, 2022. |
| Background Information |
On October 14, 2021, Public Works received a letter from Fuelco Energy LLC stating that the southwest division of the company had been bought by Senergy Petroleum, LLC. The effective date was October 15, 2021. We received a copy of a letter from Senergy Petroleum, LLC introducing their company. It was stated that deliveries could begin on October 16, 2021, by contacting their 800# at customer service.
Senergy Petroleum signed Amendment No. 3 to Contract No. 050619 with Gila County on February 1, 2022, for the amount of $514,931 which was the remaining portion of the original contract with Fuelco of $900,000.00 |
| Evaluation |
| All of the pricing and contract language remain the same when the Amendment is signed. At this time, the amount of the contract doesn’t cover what is necessary to get Gila County through to July 22, 2022, with the prices being much higher than the time the original contract or other amendments were written. |
| Conclusion |
| It is advantageous for Gila County to request Amendment No. 4 with Senergy Petroleum, LLC is signed in order to continue to supply bulk fuel and lubricants before the current contract expires in July 2022. The prices Gila County Fuel Division can offer are less than that at the commercial pumps and it would be very difficult to track vehicle use or mileage if fuel was purchased elsewhere. |
| Recommendation |
| The Public Works Department Director and staff feel that the Board should buy bulk fuel and lubricants from Senergy Petroleum, LLC until contract 050619 ends in July 2022. The balance on the contract for FY2022 was $2,234 at the time this agenda was entered. It is anticipated by Fuel Management Department that another $80,000 could be purchased by July 22, 2022, with the new contract date. |
| Suggested Motion |
| Information/Discussion/Action to approve Amendment No. 4 to Contract No. 050619 with Senergy Petroleum, LLC, and to ratify staff's authorization to increase the contract for bulk fuel and lubricants, by $100,000 until July 22, 2022. (Mary Springer) |
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