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Staff proposes amendment to fuel provider contract; city withholds roughly $130,000 pending tank/code corrections
Summary
Staff and council discussed an amendment to an existing fuel-provider contract that staff said included problematic minimum purchase and exclusivity terms; staff reported withholding about $130,000 pending corrective work to bring tanks up to code and will return with recommended contract changes.
City staff briefed the council Sept. 9 about an amendment to the city’s fuel-provider contract. Staff said the original contract (signed April 24, 2024) did not return to council for final execution as expected and contains concerning provisions including minimum fuel-purchase requirements and an exclusive-provider clause.
Staff said they will present an amendment to address these issues and bring the contract into compliance with city code. They reported withholding approximately $130,000 from final payment because several site tanks and associated work were not installed per code; staff said they will not release the remaining amount until the work is completed to the city’s satisfaction.
Councilmembers and staff said the current agreement runs two years from execution and is set to expire in 2026; staff said they will re-engage the vendor on contract language and return to council with final documents for execution. No final action was taken at the workshop; staff will pursue the amendment and a subsequent agenda item for formal council approval if directed.
