Title
Dept/ Agency: Administration/Division of Central Purchasing
Action: (X) Ratifying (X) Authorizing (X) Amending
Type of Service: Use of State Contract(s) #T0083 Unleaded Automotive Gasoline
Purpose: To amend and ratify Resolution 7R1-m, adopted on October 5, 2022, Use of State Contract #T0083
Entity Name(s)/Address(s):
(1) Rachles /Michele’s Oil Company, Inc., 116 Kuller Road, Clifton,
New Jersey 07011
(2) National Fuel Oil Inc., 175 Orange Street, Newark, New Jersey 07103
Contract Amount: Not to exceed $2,000,000.00 per year.
Funding Source: Budget/Department of Public Works, Division of Motors 011-060-0602-83510-B2022; 011-060-0602-83510-B2023; 011-060-0602-83510-B2024; 011-060-0602-83510-B2025; 011-060-0602-83510-B2026 and Department of Water and Sewer Utilities 037-750-7502-83510-B2026 and 038-800-8003-83510-B2026
Contract Period: November 01, 2019 through October 31, 2026 inclusive of all extension consistent with State Contract
Contract Basis: ( ) Bid (X) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
This Resolution amends Resolution 7R1-m to (1) increase the authorized contract amount from a not to exceed amount of 1,500,000 (One Million, Five Hundred Thousand Dollars and Zero Cents) to an amount not to exceed Two Million Dollars and Zero Cents ($2,000,000.00) per year, (2) authorize the use of an additional State-approved vendor, National Fuel Oil Inc., 175 Orange Street, Newark, New Jersey 07103, State Contract #19-FLEET-00974, (3) extend the City’s authorization to utilize the State Contract through October 31, 2026, consistent with the current State contract term, and (4) include additional budget lines for the Department of Public Works, Division of Motors, and the Department of Water and Sewer Utilities, due to continued State contract extensions, increased fuel usage, fluctuating fuel costs, and operational needs.
body
WHEREAS, on October 5, 2022, the Municipal Council adopted Resolution 7R1-m, which ratified and authorized the City of Newark (the “City”) to utilize State Contract #T0083 for Unleaded Automotive Gasoline (the “State Contract”) with Rachles/Michele’s Oil Company, Inc., 116 Kuller Road, Clifton, New Jersey 07011, State Contract #19-FLEET-00973, in an amount not to exceed One Million Five Hundred Thousand Dollars and Zero Cents ($1,500,000.00), for the period commencing November 1, 2019 through October 31, 2024; and
WHEREAS, the State of New Jersey has extended State Contract #T0083 through October 31, 2026, and the City desires to continue utilizing the State Contract for the purchase of unleaded automotive gasoline necessary for municipal operations; and
WHEREAS, pursuant to Local Public Contracts Law, N.J.S.A. 40A:11-12, the City is authorized to utilize State contracts and to purchase goods from vendors awarded under such contracts; and
WHEREAS, the City requires the addition of an authorized vendor, National Fuel Oil Inc., 175 Orange Street, Newark, New Jersey 07103, State Contract #19-FLEET-00974, in order to ensure uninterrupted fuel supply, operational efficiency, and flexibility in meeting municipal demand; and
WHEREAS, due to increased fuel usage, fluctuating fuel costs, and the operational needs of the Department of Public Works, Division of Motors, and the Department of Water and Sewer Utilities, the City seeks to increase the authorized contract amount to an amount not to exceed Two Million Dollars and Zero Cents ($2,000,000.00) per year for the duration of the State Contract; and
WHEREAS, the Department of Water and Sewer Utilities, and the Department of Public Works wishes to add additional budget codes; Budget/Department of Public Works, Division of Motors 011-060-0602-83510-B2022; 011-060-0602-83510-B2023; 011-060-0602-83510-B2024; 011-060-0602-83510-B2025; 011-060-0602-83510-B2026 and Department of Water and Sewer Utilities 037-750-7502-83510-B2026 and 038-800-8003-83510-B2026, in order to ensure proper allocation of funds; and
WHEREAS, all other terms and conditions of the Contract and Resolution 7R1-m adopted on October 05, 2022 remain the same.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R1-m, adopted on October 5, 2022, is hereby amended to increase the authorized contract amount from amount not to exceed One Million Five Hundred Thousand Dollars and Zero Cents ($1,500,000.00) to an amount not to exceed Two Million Dollars and Zero Cents ($2,000,000.00) per year for the period through October 31, 2026, inclusive of extensions consistent with the State contract.
2. The Municipal Council hereby ratifies the City’s use of State Contract #T0083, including the additional vendor, increased contract amount, for the period of October 5, 2022 through the date of adoption of this Resolution.
3. This Contract was awarded as an Open-Ended contract pursuant to N.J.A.C. 5:30-5.5(b)(2). A Certification of the Availability of Funds shall be executed each time a purchase order is placed and charged against this Contract. Resolution 7R1-m is further amended to include additional budget lines for the Department of Public Works, Division of Motors, and the Department of Water and Sewer Utilities, as follows:
Department of Public Works, Division of Motors
011-060-0602-83510-B2022
011-060-0602-83510-B2023
011-060-0602-83510-B2024
011-060-0602-83510-B2025
011-060-0602-83510-B2026
Department of Water and Sewer Utilities
037-750-7502-83510-B2026
038-800-8003-83510-B2026
4. Except as expressly amended herein, all other terms and conditions of Resolution 7R1-m, adopted on October 5, 2022, shall remain in full force and effect.
5. There shall be no advance payment on this Contract in accordance with N.J.S.A. 40A:5-16.
6. Pursuant to N.J.S.A. 52:15C-10 and N.J.A.C. 19:70-3.2, notice to the Office of the State Comptroller shall be provided if the aggregate value of the contract or the value of this amendment meets the applicable statutory threshold, within twenty (20) business days of authorization.
STATEMENT
This Resolution amends and ratifies Resolution 7R1-m, adopted on October 5, 2022, which authorized the utilization of State Contract #T0083 for Unleaded Automotive Gasoline, including ratification of the City’s use of the State contract for the period of November 1, 2024 through the date of adoption of this Resolution, to (1) increase the authorized contract amount to an amount not to exceed Two Million Dollars and Zero Cents ($2,000,000.00) per year, (2) authorize the use of an additional State-approved vendor, National Fuel Oil Inc., 175 Orange Street, Newark, New Jersey 07103, State Contract #19-FLEET-00974, (3) authorize continued utilization of the State contract through October 31, 2026, or until such time as the State contract expires, and (4) include additional budget lines for the Department of Public Works, Division of Motors, and the Department of Water and Sewer Utilities.