Title
Consideration of and action to ratify the termination of the agreement with Fikes Wholesale, Inc. for a one-year supply of gasoline and diesel fuel.
Body
Summary:
In June 6, 2023, after receiving and evaluating competitive sealed bids, Fikes Wholesale, Inc. (Fikes) was awarded the contract with City of Deer Park to be the City’s fuel provider with a start date of July 1, 2023 expiring on June 30, 2024. On October 18, 2023, the City of Deer Park received a notification letter from Fikes (see attached) regarding an increase in the City’s contracted fuel price. Due to the signed agreement, Fikes is contractually bound to honor the rates presented in the contract and is not authorized to impose a price increase on the City. Unable to honor the rates provided in the contract, Fikes has chosen to terminate the agreement with the City. As a result of this decision, Fikes has been disqualified from bidding on any future bids with the City of Deer Park.
Fiscal/Budgetary Impact:
With this action, Council is ratifying the termination the contract with Fikes Wholesale, Inc. and authorizing staff to seek a different fuel provider.
Recommended action
Ratify the termination of the contract with Fikes Wholesale, Inc.