DATE: August 4, 2020
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Assignment of Agreement for Fuel Site Repair, Maintenance, and Inspection Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Assignment of Agreement No. 16-154-1 from Valley Petroleum & Lift, Inc. to Central Cal Services, Inc. for fuel site repair, maintenance, and inspection services, effective upon execution.
REPORT
Approval of the recommended action will assign Agreement No. 16-154 with Valley Petroleum & Lift, Inc. for fuel site repair, maintenance, and inspection services to Central Cal Services, Inc. The agreement was approved by the Board on April 12, 2016 with Rumex Construction Corporation, which was bought by Valley Petroleum & Lift, Inc. (VP&L) in the same year. However, an assignment was not executed at that time due to then-current internal practices. All other terms and conditions remain the same. This item is countywide.
ALTERNATIVE ACTION(S):
Not approving the recommended action could result in disruption to fuel site operations.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action will not change the total compensation amount of the agreement ($1,139,350). Sufficient appropriations and estimated revenues are included in the Internal Services Department - Fleet Services Division Org 8910 FY 2020-21 Recommended Budget.
DISCUSSION:
On April 12, 2016, the Board approved Agreement No. 16-154 with Rumex Construction Corporation for fuel site repair, maintenance, and inspection services for a three-year term with the option for two, one-year extensions, not to exceed $1,139,350 over a potential five-year term.
In August 2016, VP&L bought out Rumex Construction, and assumed responsibilities of the agreement. A formal assignment was not completed at that time due to then-current internal practices, which at the time only required tax forms from the newly assigned vendor.
On May 22, 2020, Central Cal Services, Inc. purchased VP&L’s assets, including existing service agreements, due to VP&L closing its business. As a result of VP&L’s business closure, the parties are requesting the County consent to the assignment of all of VP&L’s rights, interests, obligations, responsibilities, and liabilities under the Agreement No. 16-154 with VP&L to Central Cal Services, Inc.
Approval of the recommended action will assign all rights, interests, obligations, responsibilities, and liabilities of VP&L under the existing Agreement No. 16-154 to Central Cal Services, Inc. with no change to the maximum compensation or term.
REFERENCE MATERIAL:
BAI #28, April 12, 2016
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Assignment of Agreement
CAO ANALYST:
Sonia M. De La Rosa