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O Consent Agenda
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Jefferson County
Board of Commissioners
Agenda Request
To: Board of Commissioners
Philip Morley, County Administrator
From: Frank Gifford, Central Services Director
Agenda Date: July 28, 2014
Subject: Agreement for Reimbursable Supply of Motor Fuel
Statement of Issue:
The County wishes to supply from its fuel sites and Jefferson County Fire District #4
wishes to purchase for vehicles or equipment gasoline and /or diesel fuel.
Analysis /Strategic Goals /Pros rt Cons:
The supply of fuel from the County's fuel sites will be of low volume and will not
degrade the service provided to County -owned vehicles and equipment. Sales of fuel
to other agencies help to increase turnover of County fuel supplies, provide other
agencies generally lower prices for fuel and avoid expensive proliferation of fueling
infrastructure by other agencies with smaller fleets.
Fiscal Impact /Cost Benefit Analysis:
Outside agencies are charged the County's existing mark -up rate, which is periodically
recalculated and covers all costs associated with the operation of fuel infrastructure
and supply of fuel.
Recommendation:
Execute the attached agreement.
Department Contact:
Matt Stewart, Manager of Fleet Services, 344 -9713
Reviewed, By:
P ip Morl aunty Administr or Date
STATE OF WASHINGTON
COUNTY OF JEFFERSON
In the matter of: x
An Agreement for Reimbursable x Agreement No. I -00 3
Supply of Motor Fuel x
TH IS AGREEMENT. made and entered into this day of 20,
by and between Jefferson County, Washington, a political subdivision of the State of Washington, hereinafter
I�
referred to as the "County"; and hereinafter referred to as the "Agency ".
The duration of this Agreement small commence on the date first written above and terminate on the clay
of 20jj-
WITNESSETI -1: It Is Hereby Covenanted and Agreed to as Follows:
1. The County shall supply motor fuel to the Agency. The location of the supply shall be one or both oi'the
County -awned fuel sites.
It is understood that the Agency makes no commitment to purchase any quantity of fuel and will avail itself
of the County's supply of fuel only according to its need, which may change. Cram tune to time.
Thf 4k ncy estimates its demand for fuel per month will be !. J gallons of diesel fuel and
gallons of unleaded gasoline, but stating that estimate in this Agreement does not bind the
Agency to purchase that quantity of fuel. Whenever practical, the Agency agrees to inform the County of
any planned changes to the quantity of fuel it will require from the County's supply if the newly planned
quantity of fuel to be purchased from the County varies (either positively or negatively) from the estimated
amount stated here by more than fifteen percent (15 %).
4. Nothing in this Agreement shall be construed to require the County to purchase, lease, install or construct
new or additional fuel handling infrastructure ol- to undertake any capital project or installation that would
increase the County's total fuel capacity. Despite the above, the County remains authorized to update,
modernize, rehabilitate, renovate of repair the infrastructure it has in place at the time of the execution of
this Agreement for fuel storage and dispensing
5. The County shall invoice the Agency for each month in which .file[ is supplied to the Agency. The invoice
shall detail usage of the County's fuel by the Agency. The invoiced price per gallon of fuel supplied to the
Agency shall be determined by the County on the basis of the price - calculation method that is determined
by the County and that may change from time to time. ]n general, the price calctlation shall 'include the
actual cost of fuel to the County at its most recent delivery, taxes paid by the County and an overhead rate
Agreement for Reimbursable Supply of Motor Fuel Agreement No. --003 Page 1
set by the County. The price per gallon of fuel supplied to the Agency will vary between fuel sites and from
time to time and will equal the price per gallon of fuel billed internally to the County.
6. The Agency herebv agrees to reimburse the County for the costs o[ each gallon of fuel supplied to the
Agency by the County. Amounts invoiced by the County to the Agency shall be reimbursed by the Agency
within sixty days.
7. The Agency agrees to pay all fuel taxes for which it is Iiable and to obtain refund of all fuel taxes for which
its use is exempt. The Agency agrees to obtain and maintain a fuel tax license from the fuel tax section of
the Washington Department of Revenue and to supply a copy of each such valid license to the County
annually. The County will pay, only the taxes for which it is liable and will furnish at the Agency's request
a sample of its file]- delivery .invoice detailing these taxes.
The County shall issue and the Agency shall utilize access cards, gate keys, personal identification n urn bers
and other such access - control supplies and methods as may be required by the County to protect its fuel
sites and its supply of fuel. Agency agrees to perform background checks on its employees, to permit
access to County fuel sites only to employees with satisfactory records and to inform the County
immediately upon discovering any safety - related concerns or other inappropriate information in the
background of any employee with access to County fuel sites. Agency agrees to protect and to require its
employees to protect access cards, keys and related access information as well as protecting access to the
fuel sites by securing gates. Agency Zvi €l immediately report any damage, Iass or misuse of access cards,
keys or related access information.
9. The Agency agrees to require its employees diligently manage the fueling process and not leave an active
fuel pump unattended except to flee a fire or other emergency. In the case of a spill or other emergency
while fueling, the attending Agency employee shall attempt to shut off the fuel pump at the handle or on
the dispenser; if it is not possible or safe to do so, the Agency employee shall attempt to disconnect
electrical power from the fuel depot by pressing the remote fuel -site shutoff switch. Fuel spills, other
emergencies and any safety or environmental concern must be reported to the County (following
notification to 911 if applicable) by the attending employee.
10. The Agency further agrees to reimburse the County for the costs of any repair or replacement of County
property damaged by any Agency vehicle, piece of equipment, employee or other driver or operator in the
course of the Agency's purchase of fuel under- this agreement. The County shall invoice the Agency and the
Agency shall reimburse the County's actual costs of labor, benefits, supplies, materials, contracts, permits
and overhead required by the repair.
11. It is understood that the County makes no Commitment to supply fuel to the Agency if failure of one or
more fuel stations or failure of the County's fuel supply chain occurs as a result of Acts of God (including
fire, flood, earthquake, tsunami, storm, hurricane or other- natural disaster), war, invasion, act of foreign
enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection,
military or usurped power or confiscation, terrorist activities, nationalization, government sanction,
blockage, embargo, labor dispute, strike, lockout, interruption or failure of transportation network or
interruption or failure of electricity or telephone service. While the County recognizes the importance of
Agency obtaining fuel under such circumstances and will attempt to maintain and continue to perform
under this agreement, such circumstances may require the prioritization of the supply of fuel for vehicles
and equipment under the control of the Jefferson County Commission, the Administrator of Jefferson
Agreement for Reimbursable Supply of Motor Fuel Agreement No. N-003 Page z
County, the Sheriff of Jefferson County or an incident - command structure. Agency agrees to subject its use
of the County's supply of fuel to decisions of prioritization and access made by the Administrator of
Jefferson County, the Sheriff of Jefferson County or other Incident Commander, whichever is controlling
access to the County's supply of fuel, under any such circumstances.
12. The Agency agrees to avoid the waste of fuel and to require that each Agency driver/operator avoid
unnecessary engine idling, endeavor to operate each asset efficiently and conserve fuel whenever possible
and practical.
13. It is understood and agreed between the parties hereto that the Agency will hold the County harmless froln
all claims, losses, demands, actions, or cause of action of any nature whatsoever by reason of the
performance of this agreement by the Agency. The Agency further agrees to defend, at its own expense.
the County in the event that any action is brought against the County as a resin€ ofany act or activity ofthe
County or its agents or employees because of or in any way arising out of the performance ofthis
agreement by the County. County for purposes of Sections 13 and 14 of this Agreement is deemed to
include officials, officers and employees of the County.
14. It is understood and agreed between the parties hereto that the CO WAY will hold the Agency harmless from
all claims, losses, demands suits or actions arising from or on account of any act, omission, neglect or
misconduct of any employee or representative of the County during the employee's or representative's
discharge of his or her official duties.
15. It is understood and agreed between the parties that this contract cannot be assigned, transferred or an),
portion subcontracted hereunder without the prior written consent of both parties.
16. The County, in the performance this contract, shall abide by the provisions of all applicable lave in its
procurement of its fuel supply and management of its fuel sites.
17. Either party may terminate this agreement with or without cause after providing sixty days notice in writing
to the other patty. Either party may provide written notice of an intended termination of the Agreement to
the other party based tipon an alleged material breach or default of the contract terms. Such notice shall
provide not less than seven (7) days notice of the proposed termination date. The party alleged1), in breach
or default o f a material terin ofthis Agreement shall have until the proposed termination date to cure the
breach or default to the satisfaction of the party alleging the breach or default has occurred.
18. The person signing this Agreement on behalf of the Agency represents he is authorized to sign on behalf of
the Agency and by signing the Agreement for their Agency binds the Agency to all terms and conditions of
this Agreement. 4
19. If any section of this Agreement is deemed unlawful or invalid by a Court of competent.lurisdiction, then all
other sections of this Agreement shall remain in full force and effect.
20. That a party to this Agreement has previously permitted or authorized the other party to not comply or
undertake an obligation imposed on the other party by this Agreement does not prevent that same party
(the party which previously waived) from subsequently requiring compliance with that same provision or
using any legal or equitable remedy to enforce that same provision.
Agreement for fteimhursable Supply of Motor Fuel Agreement No. , ■ V o3 Page 3
I . This Agreernent shall be irxterpreted in a manner consistent with the laws and precedents of the State of
Washington and venue for ally lawsuit arising fi -om this Iawsuit shall be In a court of corn petentj Uri sdictioil
in and for Jefferson County, Washington.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year
first above written_
Name of Agency - - --
Agency Representative (Please pilw)
(.Sr�rrata�re)
Title
Date
v t
Agency contact for invoices and administration
I
Title
'I�
Phone number
Email -
.JEFFERSON COUNTY
BOARD OF COMMISSIONERS
John Austin, Chair
Phil Johnson, Member
David W. Sullivan, Member
Approved as to form only:
David Alvarez. Date
Deputy Prosecuting Attorney
Agreement for Reimbursable Supply of Motor Fuel Agreement No. �{� J Page 4