Title
First Amendment to the Agreement Between the City of Gainesville and Mansfield Oil Company (B)
This item involves a First Amendment to the Agreement with Mansfield Oil Company for #2 Ultra Low Sulfur Diesel Fuel with Red Dye for Regional Transit System (RTS) diesel fuel purchases. The proposed First Amendment is to correct language in the original Agreement to match the language in the original bid document with regards to the renewal term.
Explanation
The Regional Transit System currently has an agreement with Mansfield Oil Company for #2 ultra low sulfur diesel fuel with red dye. The original Agreement dated February 20, 2006 states, "Said contract will automatically renew for an additional four (4) year period if neither party notifies the other of an intent not to renew within ninety (90) calendar days prior to the expiration date." The Agreement should match the original bid document which states, "If not cancelled by the Vendor or the participating entities, this contract shall be automatically extended/renewed beyond the first year required base contract period for four (4) one (1) year optional periods not to exceed a total contract duration of five (5) years providing there are no changes of prices, terms and conditions."
Fiscal Note
Funding in the amount of $2,100,000 for fuel has been budgeted in the annual RTS operating budget.
Recommendation
Recommended Motion: The City Commission: 1) authorize the City Manager to execute the First Amendment to the Agreement with Mansfield Oil Company.
Alternative Recommendation A: The City Commission deny authorization for the City Manager to execute the First Amendment to the Agreement with Mansfield Oil Company which will result in an automatic renewal for a 4-year period.