AgdaPkt 2017-10-23 Joint SA PFA - Laserfiche WebLink

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6.1.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager October 23, 2017 SUBJECT Amendment No. 1 to General Services Agreement with Valley Oil Company RECOMMENDATION By motion, approve and authorize the City Manager to execute Amendment No. 1 to the General Services Agreement with Valley Oil Company for a one-year extension of gasoline, diesel, and delivery services in an amount not to exceed $700,000, including City Manager authority to extend the agreement for an additional one-year term, for a total not to exceed contract price of $2,100,000 BACKGROUND In October 2016, the City entered into a General Services Agreement with Valley Oil Company for gasoline, diesel, and delivery services in the amount of $700,000, with the option to extend the contract for two (2) additional years in the amount of $700,000 per year, for a total contract amount not to exceed $2,100,000. However, the original staff report did not include the recommendation to authorize the City Manager to extend the agreement. Staff recommends amending the Valley Oil Company General Services Agreement to extend it for one (1) year in an amount not to exceed $700,000, and providing authority to the City Manager to extend the agreement for an additional one-year term for a total not to exceed contract price of $2,100,000. ANALYSIS On October 24, 2016, the City Council approved the original Valley Oil agreement authorizing purchase and delivery of gasoline and diesel, which piggybacked off a contract awarded by the Palo Alto Unified School District (PAUSD). The estimated price of the purchase and delivery is equal to or lower than that estimated for such purchase if made directly by the City pursuant to the competitive bidding requirements of the Purchasing Ordinance. In effect, the City stands to get better pricing by amending the existing agreement than by rebidding the contract. As a result, staff recommends extending the agreement for one (1) year in lieu of entering a separate competitive bidding process.