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Home My WebLink AboutMO #2189MUNICIPAL ORDER NO. 2189 A MUNICIPAL ORDER AUTHORIZING THE SECOND RENEWAL OF THE 2016-2017 FUEL SUPPLY AGREEMENT WITH JSC TERMINAL, LLC AS AMENDED FOR THE 2019 CALENDAR YEAR, AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR SAME WHEREAS, on December 17, 2015, the City of Paducah and JSC Terminal, LLC d/b/a Midwest Terminal entered into a certain 2016-2017 fuel supply agreement, whereby the Vendor agreed to furnish all fuel for the City at an agreed upon rate for the applicable term of years; and WHEREAS, the 2016-2017 fuel supply agreement stipulates that the initial would be for a two year period, ending on December 31, 2017, with an option to renew for two additional one-year terms upon the mutual agreement of both parties; and WHEREAS, both parties desire and mutually agreed to renew the Agreement for the first one-year renewal term, which commenced January 1, 2018 and will conclude on December 31, 2018; and WHEREAS, by Municipal Order 2039, the agreement was amended to provide for the supply of marine fuel at the City of Paducah's new transient boat dock (the "Dock); and WHEREAS, both parties now desire and mutually agree to renew the Agreement for the second one-year renewal term as amended to include the Dock, which shall commence January 1, 2019 and will conclude on December 31, 2019; NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. Recitals and Authorization. The City hereby approves the Second Extension and Amendment to Fuel Supply Agreement between the City and JSC Terminal, LLC d/b/a Midwest Terminal in substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it is necessary and desirable and in the best interest of the City to enter into this agreement for the purposes therein specified, and the execution and delivery of this Amendment is hereby authorized and approved. The Mayor is hereby authorized to execute this agreement with such changes not inconsistent with this Order and not substantially adverse to the City as may be approved by the official executing the same on behalf of the City. The approval of such changes by said official, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of this agreement. SECTION 2. Effective Date. This Order shall be in full force and effect on and after the date as approved by the Board of Commissioners of the City of Paducah, Kentucky. Brandi Harless, Mayor ATTEST: Q Lindsay Parish, City Cf6rk Adopted by the Board of Commissioners, December 11, 2018 Recorded by Lindsay Parish, City Clerk, December 11, 2018 \mo\agree-fuel extension — 2019 EXHIBIT A SECOND EXTENSION AND AMENDMENT TO FUEL SUPPLY AGREEMENT THIS SECOND EXTENSION AND AMENDMENT (this "Amendment") is made this day of 2018 by and between the CITY OF PADUCAH, KENTUCKY, hereinafter called the "Owner," and JSC TERMINAL, LLC D/B/A MID WEST TERMINAL, a Kentucky limited liability company, hereinafter called the "Vendor." WITNESSETH: WHEREAS, on December 17, 2015, the parties hereto entered into a certain agreement for the City of Paducah's fuel supply 2016-2017 (the "Agreement"); and WHEREAS, the Agreement stipulated that the initial term was for a two (2) year period, ending December 31, 2017, with an option to renew for two (2) additional one- year terms upon the mutual agreement of both parties; and WHEREAS, further, both parties amended this Agreement to provide for the supply of recreational fuel at the Vendor's terminal for use in the Owner's small engines and to supply marine fuel at the City of Paducah's new transient boat dock (the "Dock"); WHEREAS, at this time, both parties desire and mutually agree to renew the Agreement for the second one-year renewal term, which shall commence January 1, 2019 and conclude on December 31, 2019; and NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth herein, and for other valuable consideration, the legal adequacy and sufficiency of which is hereby acknowledged by the parties hereto, the parties do hereby covenant and agree as follows: 1. Owner and Vendor do mutually agree to renew the Agreement, which renewal shall commence on January 1, 2019 and conclude on December 31, 2019. The renewal term shall be subject to all covenants, terms, conditions and obligations set forth and contained in the Agreement including without limitation the fuel rates to be paid by Owner as provided in Article 3 of the Agreement, except as otherwise amended herein. 2. Vendor hereby agrees to furnish all the necessary labor, materials, equipment, tools and services necessary for the procurement of all recreational fuel for use in the Owner's small engines and for the Dock in accordance with all covenants, terms, conditions and obligations set forth and contained in the Agreement and at the following fuel rates: a) $0.09 above Paducah, Kentucky OPIS Gross Clear Unbranded Low Rack pricing for 90 Octane Unleaded Non -Ethanol Gasoline and b) $0.09 above Paducah, Kentucky OPIS Gross Ultra Low Sulfur Red Dye Distillate Unbranded Low Rack for Dyed Diesel. Vendor further agrees to furnish ValvTect Marine Gasoline Additive and ValvTect Premium Diesel Additive with Bioguard Microbiocide as directed by Owner at the following rate: a) $0.04 per gallon 3. Vendor is the only regional ValvTect Certified Dealer. Vendor agrees to maintain its ValvTect Tank Certification at no additional cost to Owner, which shall include conducting the following activities: i. Independent laboratory testing to ensure there is no water in gasoline storage tank; ii. Independent laboratory testing to ensure diesel bottom samples are free of microbiological contamination; and iii. Listing of Paducah Transient Boat Dock as a ValvTect certified location under the heading "Where to Buy" on ValvTect's website, valvtect.com. 4. Vendor shall monitor tank levels at the Dock at no additional cost to Owner. Vendor shall also manage inventory levels at the Dock as directed by Owner. 5. Except for the modifications set forth in this Amendment, all other terms and provisions of the Agreement entered into between the parties are expressly acknowledged, reaffirmed, and ratified by all parties hereto, and shall apply to this Amendment. All parties hereby agree to perform in strict accordance with the terms and provisions as set forth under the Agreement as extended and amended. 6. This Amendment shall be fully binding upon the parties hereto and their successors, and assigns as of the Effective Date, which is the date this Amendment is executed and delivered by the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed Amendment as of the day and year first above written. VENDOR: JSC TERMINAL, LLC d/b/a MID WEST TERMINAL OWNER: CITY OF PADUCAH By: By: 725 N 5" Street, Paducah, KY 42001 Title: