Title
Increase Purchase Order for Fuel and Fuel Management Services Contract with Lewis Oil Company of Gainesville (NB)
Explanation
On January 14, 2008 the City executed the contract for Fuel Management and Fuel Management Services with Lewis Oil Company Inc. of Gainesville. During the first seven months of this contract, fuel costs have risen an estimated 60%. Modifications were processed to cover the increase in costs via emergency purchasing waiver per Purchasing Policy 7.2 by GG/GRU, GPD and RTS.
This item is a request to increase the purchase order amount for fuel purchases to include the following:
GG/GRU increase from $1,160,000 to $1,936,493
GPD increase from $620,000 to $660,000
RTS increase from $2,132,000 to $3,325,822
Fiscal Impact
Funding for the fuel was approved by the City Commission as part of the FY07-08 budget. Funds to offset increase in budget will come from departments approved appropriations for operating expenses.
Recommendation
The City Commission: 1) approve the purchase order modifications processed via emergency purchasing waiver per Purchasing Policy 7.2 by GG/GRU, GPD and RTS; and 2) authorize the City Manager to execute purchase order for remainder of fiscal year with Lewis Oil Company of Gainesville.