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HomeMy WebLinkAboutAgreement with Small & Sons Oil Distribution Company 7o70 CITY OF AUBURN AGREEMENT FOR GASOLINE & DIESEL FUEL SERVICES Tli THIS AGREEMENT made and entered into on this E day of ✓w 2019 ("Effective Date"), by and between the City of Auburn, a municipal corporation of the State of Washington (the "City"), and Small & Sons Oil Distribution Company (the "Service Provider"). RECITALS: WHEREAS, the City is engaged in activities which require the use of gasoline and diesel fuel; and WHEREAS, it is advantageous for the City to enter into a contract for the provision of gasoline and fuel; and WHEREAS, the City desires to retain the Service Provider to provide fuel services in connection with the City's needs; and WHEREAS, the Service Provider is qualified and able to provide gasoline and diesel fuel in connection with the City's needs and is willing and agreeable to provide such services upon the terms and conditions of this Agreement. AGREEMENT: In consideration of the mutual promises set out in this Agreement, the Service Provider and the City agree as follows: 1. Term of Agreement. The term of this Agreement commences on the Effective Date and terminates on June 16, 2020, unless otherwise terminated pursuant to Sections 11 and 12 of this Agreement. 2. Scope of Services. The Service Provider agrees to supply the City with fuel in a good and professional manner consistent with the tasks described on Exhibit "1" attached to this Agreement. The Service Provider shall perform the services as an independent contractor and shall not be deemed, by virtue of this Agreement and the performance of this Agreement, to have entered into any partnership, joint venture, employment or other relationship with the City. 3. Records Inspection and Audit. All compensation payments shall be subject to the adjustments for any amounts found upon audit or otherwise to have been improperly invoiced, and all records and books of accounts pertaining to any work performed under this Agreement shall be subject to inspection and audit by the City for a period of up to three (3) years from the final payment for work performed under this Agreement. Page 1 of 7 4. Continuation of Performance. In the event that any dispute or conflict arises between the parties while this Agreement is in effect, the Service Provider agrees that, notwithstanding such dispute or conflict, the Service Provider will continue to make a good faith effort to cooperate and continue to work toward successful completion of the provision of the services. 5. Administration of Agreement. This Agreement shall be administered by Rick Walker, on behalf of the Service Provider, and by the Mayor of the City, or designee, on behalf of the City. Any written notices required by the terms of this Agreement shall be served on or mailed to the following addresses: City of Auburn Service Provider Auburn City Hall Small & Sons Oil Distribution 25 West Main Company Auburn,WA 98001-4998 112 3'1 Street NW (253) 931-3000 FAX(253) 931-3053 Auburn,WA 98001 Phone: (253)924-0610 6. Notices. All notices or communications permitted or required to be given under this Agreement will be in writing and will be deemed to have been duly given if delivered in person or deposited in the United States mail, postage prepaid, for mailing by certified mail, return receipt requested, and addressed, if to a party of this Agreement, to the address for the party set forth above, or if to a person not a party to this Agreement, to the address designated by a party to this Agreement in the foregoing manner. Any party may change his, her or its address by giving notice in writing, stating his, her or its new address, to any other party, all pursuant to the procedure set forth in this section of the Agreement. 7. Insurance. The Service Provider will procure and maintain insurance, as required in this Section, without interruption, from the Effective Date and for thirty(30) days after the term of the Agreement expires, unless otherwise indicated. The Service Provider's maintenance of insurance, its scope of coverage and limits as required shall not be construed to limit the liability of the Service Provider to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. a. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide a per project general aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Service Provider's Commercial General Liability insurance policy Page 2 of 7 with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured-Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing at least as broad coverage. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products-completed operations aggregate limit. b. Worker's compensation covered as required by the Industrial Insurance laws of the State of Washington. c. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01. Automobile insurance will be written with a minimum combined single limit for bodily injury and property damage of$1,000,000 per accident. If the Service Provider maintains higher insurance limits than the minimums shown above,the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Service Provider,irrespective of whether such limits maintained by the Service Provider are greater than those required by this contract or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Service Provider. The Service Provider's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance to the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Service Provider's insurance and shall not contribute with it. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. The Service Provider shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsements, evidencing the insurance requirements of the Service Provider before commencement of the work. Upon request by the City, the Service Provider shall furnish certified copies of all required insurance policies, including endorsements,required in this contract. 8. Indemnification. The Service Provider shall indemnify, defend and hold harmless the City and its officers, officials, agents and employees, or any of them from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. If a court of competent jurisdiction determines that this Agreement is subject to RCW 4.24.115,then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Service Provider and the City, its officers,officials, employees, and volunteers,the Service Provider's liability hereunder shall be only to the extent of the Service Provider's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Service Provider's waiver of immunity under Industrial Page 3 of 7 Insurance,Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 9. Assignment. Neither party to this Agreement shall assign any right or obligation hereunder in whole or in part, without the prior written consent of the other party. No assignment or transfer of any interest under this Agreement shall be deemed to release the assignor from any liability or obligation under this Agreement, or to cause any such liability or obligation to be reduced to a secondary liability or obligation. 10. Amendment,Modification or Waiver. No amendment, modification or waiver of any condition, provision or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound, or such party's or parties' duly authorized representative(s) and specifying with particularity the nature and extent of such amendment, modification or waiver. Any waiver by any party of any default of the other party shall not effect or impair any right arising from any subsequent default. 11. Termination for Cause. If the City concludes that the Service Provider has failed to comply with the terms and conditions of this Agreement, the City may at any time, at its discretion, provide written notice to the Service Provider and terminate the Agreement. The Notice of Termination for Cause will be in writing with the reason(s) for the termination, and will specify the effective date of the termination. The Service Provider will be allowed at least five (5) calendar days to cure the reasons for termination. If the breach is not cured within five (5)days,the City may terminate the contract and withhold all future payments. 12. Termination for Convenience. The City reserves the right to terminate this Agreement for the convenience of the City by delivery of a Notice of Termination with the effective date. The City may withhold all further payments to the Service Provider after the date of Notice of Termination. 13. Parties in Interest. This Agreement shall be binding upon, and the benefits and obligations provided for shall inure to and bind, the parties and their respective successors and assigns, provided that this section shall not be deemed to permit any transfer or assignment otherwise prohibited by this Agreement. This Agreement is for the exclusive benefit of the parties hereto and it does not create a contractual relationship with or exist for the benefit of any third party, including contractors, sub-contractors and their sureties. 14. Costs to Prevailing Party. In the event of such litigation or other legal action, to enforce any rights, responsibilities or obligations under this Agreement, the prevailing parties shall be entitled to receive its reasonable costs and attorney's fees. Any such litigation or action shall be governed by the interpreted in accordance with the laws of the State of Washington and venue for any action shall be in King County,Washington. Page 4 of 7 15. Entire Agreement. This Agreement contains the entire understanding of the parties in respect to the transactions contemplated and supersedes all prior agreements and understandings between the parties with respect to such subject matter. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective the day and year first set forth above. CITY OF AUBURN SERVICE PROVIDER `i.: ii. • By r/e4 Ati/e.e..d&A'' ancy Bac ti ayor Title Kee x.06 C' Federal Tax ID # ?/-- 0 38'3/a 1- t * Date 0"709(t...017 Date APPROVED AS TO FORM: C\ St en Gross, City Attorney Page 5 of 7 EXHIBIT"1" GASOLINE & DIESEL FUEL SUPPLY SERVICES Small & Son's Oil shall supply the City of Auburn with gasoline and diesel fuel for the period of 1 year. Starting June 2019 and ending June_, 2020. The agreement may be extended for additional years upon mutual agreement of both parties. Small & Son's Oil will furnish top quality gasoline and diesel manufactured from major oil companies. Pricing will be firm and fixed for the duration of the agreement. Fuel Prices change on a daily basis but the fixed margin will remain the same. The pricing will be based on Phillips 66 Renton Unbranded Rack price plus margin that includes delivery fees. Small & Sons will attach a rack cost sheet for each delivery to show the proper margin was applied for audit purposes. The margin for truck and trailer deliveries (8000 gallons Gasoline, 6500 gallons Diesel -or more)will be four and a half cents per/gallon (.045). The margin for generation sites will depend on the amount of gallons delivered: Gallons Delivered Price for Fuel Daily Cost + Margin • 0 to 150 Rack Price+$1.50 • 151-250 Rack Price +$1.25 • 251-400 Rack Price+$.50 • 401- 550 Rack Price+$.40 • 551-750 Rack Price+$.35 • 751-950 Rack Price +$.25 • 951-1150 Rack Price+$.22 • 1151-1450 Rack Price +$.20 Page 6 of 7 EXHIBIT "2" COMPENSATION AND PAYMENT The Service Provider will provide an invoice to the City within 1 business day of the City receiving product from the Service Provider. The invoice will include the Phillips 66 Fuel Pricing. Page 7 of 7