HomeMy WebLinkAbout2024 Agreement24-18-ITB, Citywide Fuel Supply Page 1 of 21
CITY OF SEBASTIAN AGREEMENT FOR
CITYWIDE FUEL SUPPLY SERVICES WITH
PALMDALE OIL COMPANY, LLC
THIS AGREEMENT was made and entered into September 25, 2024, by and between the City
of Sebastian, Florida, whose address is 1225 Main Street, Sebastian, FL 32958, a municipal
corporation of the State of Florida, hereinafter referred to as the "City" and Palmdale Oil
Company, LLC (FEIN: 59-2358666), whose principal and local address is 7111 Fairway Drive,
Suite 450, Palm Beach Gardens, FL 33418 hereinafter referred to as the “Contractor”. The City
and the Contractor are collectively referred to herein as the “Parties.”
WITNESSETH:
WHEREAS, the City desires to retain the Contractor for the work identified in the proposal
specifications outlined in the Invitation to Bid 24-18, Citywide Fuel Supply; and
WHEREAS, the City desires to retain the Contractor to provide Fuel Supply Services, as
subsequently specifically set out in purchase orders to be issued under this agreement; and
WHEREAS, the City desires to employ the Contractor to support the activities, programs,
and projects of the City upon the terms and conditions hereinafter set forth, and the Contractor is
desirous of performing and providing such goods/services upon said terms and conditions; and
WHEREAS, the Contractor hereby warrants and represents to the City that it is competent
and otherwise able to provide professional services to the City; and
WHEREAS, all City promulgated bid documents pertaining to 24-18-ITB, Citywide Fuel
Supply, and all submissions by the Contractor (including the bid proposal and proposal
clarifications) are incorporated herein to the extent not inconsistent with the terms and conditions
as set forth herein; and
WHEREAS, the City desires to retain the Contractor to provide all labor, materials,
equipment, facilities, and services included in, but not limited to, the guidelines in the scope of
work; and
WHEREAS, the City desires to use the expertise and knowledge of the Contractor; and
WHEREAS, the Contractor recognizes the importance of strict adherence to all laws,
rules, and regulations, particularly regarding safety procedures and processes.
NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, it is agreed by and between the parties hereto as follows:
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SECTION 1: GENERAL PROVISIONS
1.1 The term "Contractor" as used in this agreement is hereby defined herein as that person or
entity, including employees, servants, partners, principals, agents, and assignees providing
services under this agreement.
1.2 The Contractor acknowledges that the City may retain other service providers to provide
the same services for City projects. At its option, the City may request proposals from the
Contractor and the service providers for City projects. The City reserves the right to select
which service providers shall provide services for the City’s projects.
1.3 This agreement is for fuel supply services as set forth herein and as otherwise directed by
the City to include all labor and materials that may be required.
1.4 The recitals above are true and correct and form and constitute a material part of this
agreement upon which the parties have relied.
1.5 Each party hereto represents to the other that it has undertaken all necessary actions to
execute this agreement and has the legal authority to enter into it and undertake all
obligations imposed on it. The person(s) executing this agreement for the Contractor certify
that they are authorized to bind the Contractor fully to the terms of this agreement.
1.6 Time is of the essence of the lawful performance of the duties and obligations contained in
this agreement, including, but not limited to, each purchase order. The parties agree that
they shall diligently and expeditiously pursue their respective obligations outlined in this
agreement and each purchase order.
1.7 When the term “law” is used herein, it shall include statutes, codes, rules, and regulations
of any type or nature enacted or adopted by a governmental entity of competent
jurisdiction.
1.8 The Contractor hereby guarantees the City that all work and all material, supplies, services,
and equipment listed on a Purchase Order meet the requirements, specifications, and
standards provided for under the Federal Occupations Safety and Health Act of 1970, from
time to time amended and in force on the date hereof.
1.9 It is agreed that nothing herein contained is intended or should be construed as creating or
establishing a relationship of co-partners between the parties or as constituting the
Contractor (including, but not limited to its officers, employees, and agents) as the agent,
representative, or employee of the City for any purpose or in any manner whatsoever. The
Contractor is to be and shall remain independent concerning all services performed under
this agreement.
1.10 Persons employed by the Contractor in the provision and performance of the goods and/or
services and functions under this agreement shall have no claim to pension, workers’
compensation, unemployment compensation, civil service, or other employee rights or
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privileges granted to the City’s officers and employees either by operation of law or by the
City.
1.11 No claim for goods and/or services furnished by the Contractor not specifically provided
for herein or in a purchase order shall be honored by the City.
SECTION 2: SCOPE OF SERVICES
2.1 The Contractor shall safely, diligently, and professionally and timely perform with its
equipment and assets and provide goods and/or services included in each subsequently
entered purchase order. Unless modified in writing by the parties hereto, the Contractor's
duties shall not be construed to exceed the provision of the goods and/or services pertaining
to this agreement.
2.2 The Contractor shall provide the goods and/or services as generally set forth and described
in Exhibit “A” to this agreement and specifically detailed in various purchase orders as
may be issued from time to time by the City.
SECTION 3: PURCHASE ORDERS
3.1 The provision of services to be performed under the provisions of this agreement shall be
commenced as outlined in the City’s bid/procurement documents upon the execution of
this agreement and a purchase order issued on a form provided by the City hereunder
commencing the provision of goods and services. Additional services to be performed by
the Contractor to the City shall be authorized in a written change order issued by the City
on a form provided by the City. Purchase orders executed by the City shall include a
detailed description of quantities, services, and a completion schedule. The Contractor
shall review purchase orders and notify the City in writing of asserted inadequacies for the
City’s correction if warranted. In every case, if the Contractor completes work without
authorization by a purchase/work order or a change order, the City is not obligated to
compensate the Contractor for the unauthorized work.
3.2 The Contractor shall perform all services required by the purchase order, but the Contractor
shall not be paid more than the negotiated Fixed Fee amount stated therein.
3.3 The Contractor may invoice the amount due based on the percentage of total services
performed and completed, but in no event shall the invoice amount exceed a percentage of
the Fixed Fee amount equal to a percentage of the total services completed.
3.4 The City shall make payments to the Contractor when requested as work progresses for
services furnished, but not more than once monthly. Each purchase order shall be invoiced
separately. The Contractor shall render to the City, at the close of each calendar month, an
itemized invoice properly dated, describing any services rendered, the cost of the services,
the name and address of the Contractor, purchase order number, contract number, and all
other information required by this agreement.
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SECTION 4: CONTRACTOR UNDERSTANDING OF SERVICES REQUIRED
4.1 Execution of this agreement by the Contractor is a representation that the Contractor is
familiar with the services to be performed and local conditions. The Contractor shall make
no claim for additional time or money based upon its failure to comply with this agreement.
The Contractor has informed the City, and hereby represents to the City, that it has
extensive experience in performing and providing the services and/or goods described in
this agreement and to be identified in the purchase orders and that it is well acquainted with
the work conditions and the components that are properly and customarily included within
such projects and the requirements of laws, ordinance, rules, regulations or orders of any
public authority or licensing entity having jurisdiction over the City's projects. Execution
of a purchase order shall be an affirmative and irrefutable representation by the Contractor
to the City that the Contractor is fully familiar with all requisite work conditions of the
provisions of the goods and/or services.
SECTION 5: CHANGE ORDERS
5.1 The City may revise the scope of services outlined in any particular purchase order.
5.2 Revisions to any purchase order shall be authorized in writing by the City as a change
order. Each change order shall include a schedule of completion for the services authorized.
Change orders shall identify this agreement and the appropriate purchase order number.
Change orders may contain additional instructions or provisions specific to certain aspects
of this agreement pertinent to the services provided. Such supplemental instructions or
provisions shall not be construed as modifying this agreement. An agreement between the
parties on and execution of any change order shall constitute a final settlement and a full
accord and satisfaction of all matters relating to the change and to the impact of the change
on unchanged goods and/or work, including all direct and indirect costs of whatever nature,
and all adjustments to the Contractor’s schedule.
SECTION 6: CONTRACTOR RESPONSIBILITIES
6.1 The Contractor shall be responsible for the professional quality, accepted standards,
technical accuracy, neatness of appearance of employees, employee conduct, safety, and
the coordination of all goods and/or services furnished by the Contractor under this
agreement as well as the conduct of its staff, personnel, employees, and agents. The
Contractor shall provide the City a list of employees working days, times, and assignments
within two (2) hours of the City’s request for such information, which the City may request.
The Contractor shall provide employee addresses and driver’s licenses. All Contractor
employees shall at all times wear identification badges which, at a minimum, give the name
of the employee and the Contractor. The Contractor shall work closely with the City to
provide the goods and/or services. Concerning services, the Contractor shall be responsible
for the professional quality, technical accuracy, competence, methodology, accuracy, and
coordination of all of the following, which are listed for illustration purposes only and not
as a limitation: documents, analysis, reports, data, plans, plats, maps, surveys,
specifications, and all other services of whatever type or nature furnished by the Contractor
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under this agreement. Without additional compensation, the Contractor shall correct or
revise any errors or deficiencies in its plans, analysis, data, reports, designs, drawings,
specifications, and any and all other services of whatever type or nature. The Contractor’s
submissions in response to the subject bid or procurement processes are incorporated
herein by this reference.
6.2 Neither the City’s review, approval, or acceptance of nor payment for any of the goods
and/or services required shall be construed to operate as a waiver of any rights under this
agreement or of any cause of action arising out of the performance of this agreement and
the Contractor shall be and remain liable to the City per applicable law for all damages to
the City caused by the Contractor’s negligent or improper performance or failure to
perform any of the goods and/or services furnished under this agreement.
6.3 The rights and remedies of the City, provided for under this agreement, are in addition to
any other rights and remedies provided by law.
6.4 Time is of the essence in the performance of all goods and/or services provided by the
Contractor under the terms of this agreement and every purchase order.
SECTION 7: CITY RIGHTS AND RESPONSIBILITIES
7.1 The City shall reasonably cooperate with the Contractor promptly at no cost to the
Contractor as outlined in this Section.
7.2 The City shall furnish a City project manager to administer, review, and coordinate the
provision of services under purchase orders.
7.3 The City shall make City personnel available where, in the City’s opinion, they are required
and necessary to assist the Contractor. The availability and necessity of said personnel to
assist the Contractor shall be determined solely at the discretion of the City.
7.4 The City shall examine all of the Contractor's services and indicate the City's approval or
disapproval within a reasonable time so as not to delay the provisions of services of the
Contractor materially.
7.5 The City shall transmit instructions and relevant information and interpret and define City
policies and decisions concerning all materials and other matters pertinent to the services
covered by this agreement.
7.6 The City shall give written notice to the Contractor whenever the City's designated
representative knows of a development that affects the goods and/or services provided and
performed under this agreement, the timing of the Contractor’s provision of goods and/or
services, or a defect or change necessary in the Contractor's goods and/or services.
7.7 The rights and remedies of the City provided under this agreement are in addition to any
other rights and remedies provided by law. The City may assert its right of recovery by any
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appropriate means including, but not limited to, set-off, suit, withholding, recoupment, or
counterclaim, either during or after the performance of this agreement as well as the
adjustment of payments made to the Contractor based upon the quality of work of the
Contractor.
7.8 The City shall be entitled to recover all legal costs, including, but not limited to, attorney
fees and other legal costs, that it may incur in any legal actions it may pursue to enforce
the terms and conditions of this agreement or the responsibilities of the Contractor in
carrying out the duties and responsibilities deriving from this agreement.
7.9 The failure of the City to insist in any instance upon the strict performance of any provision
of this agreement or to exercise any right or privilege granted to the City hereunder shall
not constitute or be construed as a waiver of any such provision or right and the same shall
continue in force.
7.10 Neither the City’s review, approval, or acceptance of nor payment for any of the goods
and/or services required shall be construed to operate as a waiver of any rights under this
agreement nor any cause of action arising out of the performance of this agreement and the
Contractor shall be and always remain liable to the City per applicable law for all damages
to the City or the public caused by the Contractor’s negligent or wrongful provision or
performance of any of the goods and/or services furnished under this agreement.
7.11 After final payment is made to the Contractor, all deliverable analysis, reference data,
survey data, plans, reports, or any other form of written instrument or document that may
result from the Contractor’s services or have been created during the Contractor’s
performance under this agreement shall become the property of the City.
SECTION 8: COMPENSATION
8.1 Compensation for performance of work per Exhibit A, subject to additions and deletions
by change order as provided for in this agreement.
8.2 Compensation to the Contractor shall be as outlined in the purchase order, which assigns
services to be accomplished by the Contractor.
8.3 The Contractor shall be paid per the charges outlined in Exhibit “B” attached hereto.
8.4 There are no reimbursable expenses to be paid to the Contractor except as specifically set
forth herein.
SECTION 9: INVOICE PROCESS
9.1 Invoices, in an acceptable form to the City and without disputable items, will be processed
for payment within thirty (30) days of receipt by the City.
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9.2 The City will notify the Contractor of any disputable items in invoices submitted by the
Contractor within fifteen (15) days of receipt, explaining the deficiencies.
9.3 The City and the Contractor will try to resolve all disputable items in the Contractor’s
invoices.
9.4 Each invoice shall reference this agreement, the appropriate purchase order and Change
Order if applicable, and the billing period.
9.5 The Florida Prompt Payment Act shall apply when applicable. A billing period represents
the dates in which the Contractor completed goods and/or services referenced in an invoice.
9.6 Invoices are to be forwarded directly to:
Finance Department
City of Sebastian
1225 Main Street
Sebastian, FL 32958
SECTION 10: COMMENCEMENT SCHEDULE OF AGREEMENT
10.1 The Contractor shall commence providing services as described in this agreement upon
execution of a purchase order issued by the City.
10.2 The Contractor and the City agree to make every effort to adhere to the schedules required
by the City or as established for the various purchase orders as described in each purchase
order. However, if the Contractor is delayed at any time in the provision of goods and/or
services by any act or omission of the City, or of any employee, tumult of the City, or by
any other Contractor employed by the City, or by changes ordered by the City, or by strikes,
lockouts, fire, unusual delay in transportation, terrorism, unavoidable casualties, or any
other causes of force majeure not resulting from the inactions or actions of the Contractor
and beyond the Contractor’s control which would not reasonably be expected to occur in
connection with or during performance or provision of the goods and/or services, or by
delay authorized by the City pending a decision, or by any cause which the City shall decide
to justify the delay, the time of completion shall be extended for such reasonable time as
the City may decide in its sole and absolute discretion. It is further expressly understood
and agreed that the Contractor shall not be entitled to any damages or compensation or be
reimbursed for any losses due to any delay or delays resulting from any of the causes as
mentioned earlier or any other cause whatsoever.
SECTION 11: TERM/LENGTH OF AGREEMENT
11.1 The initial term of this agreement shall be for two (2) years with two (2) 24-month renewal
options.
11.2 The City has the right to extend any contract for the period necessary for the Contractor to
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complete their contractual obligations and/or release, award, and implement a replacement
agreement. Such extension shall be based on the same prices, terms, and conditions this
contract outlines.
SECTION 12: DESIGNATED REPRESENTATIVES
12.1 The City designates the City Manager or their designated representative, to represent the
City in all matters pertaining to and arising from the work and the performance of this
agreement.
12.2 The City Manager, or his/her designated representative, shall have the following
responsibilities:
12.3 Examination of all work and rendering, in writing, decisions indicating the City's approval
or disapproval within a reasonable time so as not to materially delay the work of the
Contractor;
12.4 Transmission of instructions, receipt of information, and interpretation and definition of
City's policies and decisions with respect to design, materials, and other matters pertinent
to the work covered by this agreement;
12.5 Giving prompt written notice to the Contractor whenever the City official representative
knows of a defect or change necessary in the project; and
12.6 Coordinating and managing the Contractor’s preparation of any necessary applications to
governmental bodies to arrange for submission of such applications.
12.7 Until further notice from the City Manager, the designated representative for this
agreement is concerning this section of the Agreement:
David Moore, Fleet Superintendent
Phone: 772-388-8148
Cell: 772-588-4895
Email: DMoore@cityofsebastian.org
The Contractor’s designated representative is:
Lachlan Cheatham, President
7111 Fairway Officer Center, Suite 450
Palm Beach Gardens, FL 33410
Phone: 772-461-2300
Email: lach@palmdaleoil.com
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SECTION 13: TERMINATION FOR CAUSE OR CONVENIENCE.
13.1 Notwithstanding any other provision of this agreement, the City shall have the right at any
time to terminate this agreement in its entirety, with or without cause, as outlined below.
13.2 If the Contractor is found to have failed to perform services in a manner satisfactory to the
City, the Contractor shall have ten (10) days to correct deficiencies.
13.3 Failure of the Contractor to remedy said specified deficiencies within ten (10) days of
receipt of such notice shall result in the termination of the agreement, and the City shall be
relieved of any responsibilities and liabilities under the terms and provisions of the
contract. Upon receipt of notice of termination, the Contractor shall promptly discontinue
the provision of all services unless the notice provides otherwise.
13.4 The City shall have the right to terminate this agreement without cause with thirty (30)
days' written notice to the Contractor. Notice shall be served to the parties as specified in
the agreement.
13.5 If this agreement is terminated, the City shall identify any specific purchase order(s) being
terminated and the specific purchase order(s) to be continued to completion according to
the provisions of this agreement.
13.6 This agreement will remain in full force and effect as to all authorized purchase order(s) to
be completed in (13.5) above.
13.7 If after the City’s termination for cause for failure of the Contractor to fulfill its obligations
under this agreement, it is found that the Contractor has not so failed, the termination shall
be deemed to have been for convenience and without cause.
SECTION 14: PAYMENT IN THE EVENT OF TERMINATION
14.1 In the event this agreement or any purchase order is terminated or canceled before
completion without cause, payment for the unpaid portion of the satisfactorily, undisputed
services provided by the Contractor before the date of termination will be paid.
SECTION 15: EQUAL OPPORTUNITY EMPLOYMENT
15.1 The Contractor shall not discriminate based on race, color, sex, age, national origin,
religion, and disability or handicap by the provisions of: Title VI of the Civil Rights Act of
1964 (42 U.S.C. § 2000 et seq.), Title VII of the Civil Rights Act of 1968 (42 U.S.C. §
3601 et seq.), Florida Civil Rights Act of 1992 (§ 760.10 et seq.), Title 41 CFR Part 60 for
compliance with Executive Orders 11246 and 11375, Title 49 CFR 23 and Title 49 CFR
26 for Disadvantaged Business Enterprises, Age Discrimination Act of 1975 (42 U.S.C. §
6101, et seq.), Title 49 CFR 21 and Title 49 CFR 23, Nondiscrimination based on handicap,
Title 49 CFR 27, Americans with Disabilities Act of 1990 (42 U.S.C. 12102, et. seq.),
Federal Fair Labor Standards Act (29 U.S.C. § 201, et seq.), and any other federal and state
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discrimination statutes. The contractor shall furnish pertinent information regarding its
employment policies and practices and those of their proposed subcontractors the City may
require. The above shall be required of any subcontractor hired by the Contractor. All equal
employment opportunity requirements shall be included in all non-exempt subcontracts
entered into by the Contractor. Subcontracts entered into by the Contractor shall also
include all other applicable labor provisions. No subcontract shall be awarded to any
noncomplying subcontractor. Additionally, the Contractor shall insert in its subcontracts a
clause requiring subcontractors to include these provisions in any lower tier subcontracts
that may be made. The Contractor shall comply with all state laws and local ordinances.
SECTION 16: INDEMNIFICATION
16.1 The Contractor and its subcontractors (if applicable) shall indemnify, defend and hold
harmless the City, and its officers and employees, from liabilities, damages, losses, and
costs, including, but not limited to, reasonable attorneys’ fees, to the extent caused by the
negligence, recklessness, or intentionally wrongful conduct of the Contractor or its
subcontractors and other persons employed or utilized by the consultant or its
subcontractors in the performance of the contract; regardless of the negligence of the
indemnitee or its officers, directors, agents, or employees. However, such indemnification
shall not include claims of, or damages resulting from, gross negligence or willful, wanton,
or intentional misconduct of the indemnitee or its officers, directors, agents, or employees.
Upon request of the City, the consultant or its subcontractors shall, at no cost or expense
to the City, indemnify and hold the City harmless of any suit asserting a claim for any loss,
damage, or liability specified above, and the consultant or its subContractors shall pay any
cost and reasonable attorneys’ fees that may be incurred by the City in connection with any
such claim or suit or in enforcing the indemnity granted above. Nothing in this agreement
shall be construed as the City waiving its sovereign immunity under Florida Statute
§768.28 or any other sovereign or governmental immunity, nor an admission of any
liability. This provision shall survive the termination of this agreement.
SECTION 17: INSURANCE
17.1 The Contractor shall obtain or possess and continuously maintain the following insurance
coverage from a company or companies with a Best Rating of A- or better, authorized to
do business in the State of Florida and a form acceptable to the City and with only such
terms and conditions as may be sufficient to the City:
17.1.1 Comprehensive General Liability: The Contractor shall provide minimum
combined single limits of $1,000,000.00 for each occurrence / $2,000,000.00
general aggregate for bodily injury and property damage liability. This shall
include premises/operations, personal & advertising injury, products & completed
operations, broad form property damage, personal and advertising injury, and
contractual liability coverage.
17.1.2 Comprehensive Automobile Liability: The Contractor shall provide minimum
liability limits of $1,000,000.00 for each accident, combined with a single limit
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for bodily injury and property damage. This shall include coverage for:
17.1.2.1 Owned Automobiles
17.1.2.2 Hired Automobiles
17.1.2.3 Non-Owned Automobiles
17.1.3 Worker’s Compensation: The Contractor shall provide and maintain Coverage for
all employees for statutory limits as required by the State of Florida’s Statutory
Workers’ Compensation Law and all applicable Federal laws. The policy(ies) must
include the Employer’s Liability with minimum limits of $1,000,000 for each
accident and a waiver of subrogation.
17.1.4 Umbrella/Excess Liability: The Contractor shall provide umbrella/excess coverage
with limits of no less than $1,000,000.00 excess of Comprehensive General
Liability, Automobile Liability, and Employers’ Liability. **This coverage is
optional if the CONTRACTOR carries $2,000,000 Commercial General
Liability Insurance with a $2,000,000 general aggregate**
17.1.5 All insurance other than Worker’s Compensation to be maintained by the
Contractor shall specifically include the City as an additional insured.
17.2 The Contractor shall provide certificates of insurance to the City, evidencing that all such
insurance is in effect before the issuance of the first purchase order under this agreement
from the City. These certificates of insurance shall become part of this agreement. Neither
approval by the City nor failure to disapprove the insurance furnished by a Contractor shall
relieve the Contractor of the Contractor’s full responsibility for performance of any
obligation, including the Contractor’s indemnification of the City under this agreement. If,
during the period which an insurance company is providing the insurance coverage
required by this agreement, an insurance company shall: (1) lose its Certificate of
Authority, (2) no longer comply with Section 440.57, Florida Statutes, or (3) fail to
maintain the requisite Best’s Rating and Financial Size Category, the Contractor shall, as
soon as the Contractor knows any such circumstance, immediately notify the City and
immediately replace the insurance coverage provided by the insurance company with a
different insurance company meeting the requirements of this agreement. Until the
Contractor has replaced the unacceptable insurer with insurance acceptable to the City, the
Contractor shall be deemed to be in default of this agreement.
17.3 The insurance coverage shall contain a provision that requires that before any changes in
the coverage, except increases in aggregate coverage, thirty (30) days prior notice will be
given to the City by submission of a new certificate of insurance.
17.4 The Contractor shall furnish a certificate of insurance directly to the City’s
procurement/contracts manager. The certificates shall indicate that the Contractor has
obtained insurance of the type, amount, and classification required by this agreement.
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17.5 Nothing in this agreement or any action relating to this agreement shall be construed as the
City’s waiver of sovereign immunity beyond the limits outlined in Section 768.28, Florida
Statutes.
17.6 The City shall not be obligated or liable under the terms of this agreement to any party
other than the Contractor. There are no third-party beneficiaries to this agreement.
17.7 The Contractor is an independent Contractor and not an agent, representative, or employee
of the City. The City shall have no liability except as spe cifically provided in this
agreement.
17.8 All insurance shall be primary to, and not contribute to, any insurance or self -insurance
maintained by the City.
SECTION 18: STANDARDS OF CONDUCT
18.1 The Contractor shall promptly notify the City in writing of the filing of any voluntary or
involuntary petition for bankruptcy and/or any insolvency of the Design-Builder or any of
its subcontractors involved in the provision of the Services under this Agreement.
18.2 The Contractor hereby certifies that no undisclosed (in writing) conflict of interest exists
concerning the agreement, including, but not limited to, any conflicts that may be due to
the representation of other clients, customers, or vendees, other contractual relationships
of the Contractor, or any interest in property that the Contractor may have. The Contractor
further certifies that any conflict of interest arising during this agreement's term shall be
immediately disclosed in writing to the City. Violation of this Section shall be considered
as justification for immediate termination of this agreement.
18.3 If the City determines that any employee or representative of the Contractor is not
satisfactorily performing his/her assigned duties or is demonstrating improper conduct
under any assignment or work performed under this agreement, the City shall notify the
Contractor in writing. The Contractor shall immediately remove such employee or
representative of the Contractor from such assignment.
18.4 The Contractor shall not publish any documents or release information regarding this
agreement to the media without prior approval of the City.
18.5 The Contractor shall certify, upon request by the City, that the Contractor maintains a drug-
free workplace policy following Section 287.0878, Florida Statutes. Failure to submit this
certification may result in termination of this agreement.
18.6 If the Contractor or an affiliate is placed on the convicted vendor list following a conviction
for a public entity crime, such action will result in termination of this agreement by the
City. Under a contract with any public entity, the contractor, supplier, or subcontractor may
not transact business with any public entity above the threshold amount provided in s.
287.017, Florida Statutes for CATEGORY TWO for 36 months after being placed on the
convicted vendor list.
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18.7 Contractor certifies to the best of their knowledge and belief, that they and their principals
(1) are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any municipal, City, state or federal
department or agency; (2) have not, within a three year period preceding execution of this
agreement, been convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining, attempting to
obtain, or performing a public (federal, state or local) transaction or contract under a public
transaction; violation of federal or state antitrust statutes or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records; making false statements; or
receiving stolen property; (3) are not presently indicted for or otherwise criminally or
civilly charged by a governmental entity (federal, state or local) with commission of any
of the offenses enumerated above; (4) have not within a three year period preceding
execution of this Agreement had one or more public transactions (Federal, State, or local)
terminated for cause or default; and (5) will advise the City immediately if their status
changes and will explain the change in status.
18.8 The City reserves the right to unilaterally terminate this agreement if the Contractor refuses
to allow public access to all documents, papers, letters, or other materials subject to
provisions of Chapter 119, Florida Statutes, and other applicable law, and made or
received by the Contractor in conjunction, in any way, with this agreement.
18.9 The Contractor shall comply with the requirements of the Americans with Disabilities Act
(ADA), and all related federal or state laws which prohibit discrimination by public and
private entities based on disability.
18.10 The City will not intentionally award publicly-funded contracts to any Contractor who
knowingly employs unauthorized alien workers, constituting a violation of the employment
provisions contained in 8 U.S.C. Section 1324a(e) Section 274A(e) of the Immigration and
Nationally Act (INA). The City shall consider the employment by the Contractor of
unauthorized aliens, a violation of Section 274A(e) of the INA. Such violation by the
Contractor of the employment provisions contained in Section 274A(e) of the INA shall be
grounds for immediate termination of this agreement by the City.
18.11 The Contractor agrees to comply with federal, state, and local environmental, health, and
safety laws and regulations applicable to the goods and/or services provided to the City.
The Contractor agrees that any program or initiative involving the work that could
adversely affect any personnel involved, citizens, residents, users, neighbors, or the
surrounding environment will ensure compliance with all employment safety,
environmental, and health laws.
18.12 The Contractor shall ensure that all goods and/or services are provided to the City after the
Contractor has obtained any permits, licenses, permissions, approvals, or similar consents
at its sole and exclusive expense.
18.13 If applicable, per Section 216.347, Florida Statutes, the Contractor shall not use funds
provided by this agreement to lobby the Legislature, the judicial branch, or state agency.
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Furthermore, Contractor shall not, in connection with the contract, directly or indirectly (1)
offer, confer, or agree to confer any pecuniary benefit on anyone as consideration for any
City officer or employee’s decision, opinion, recommendation, vote, other exercise of
discretion, or violation of a known legal duty; or (2) offer, give, or agree to give to anyone
any gratuity for the benefit of, or at the direction or request of, any City officer or employee.
“Gratuity” means any payment of more than nominal monetary value in cash, travel,
entertainment, gifts, meals, lodging, loans, subscriptions, advances, money deposits,
services, employment, or contracts.
18.14 The Contractor shall advise the City in writing who has been placed on a discriminatory
vendor list, may not submit a bid on a contract to provide goods or services to a public
entity, or may not transact business with any public entity.
18.15 The Contractor shall not engage in any action that would create a conflict of interest in the
performance of that actions of any City employee or other person during the performance
of, or otherwise related to, this agreement or which would violate or cause others to violate
the provisions of Part III, Chapter 112, Florida Statutes, relating to ethics in government.
SECTION 19: PUBLIC RECORDS
19.1 TThe consultant will keep and maintain public records required by the City to perform the
service. Upon request from the City’s custodian of public records, the Consultant will
provide the City with a copy of the requested records or allow the records to be inspected
or copied within a reasonable time and at a cost that does not exceed the cost provided in
Chapter 119, Florida Statues, or as otherwise provided by law. Upon completion of the
Agreement, the Consultant will transfer, at no cost, to the City all public records in
possession of the Consultant or keep and maintain public records required by the City to
perform the service. The Consultant will ensure that the public records that are exempt or
confidential and exempt from public records disclosure requirements are not disclosed
except as authorized by law for the term of the Agreement and following completion of the
Agreement if the Consultant does not transfer the records to the City. If the Consultant
keeps and maintains public records upon completion of the Agreement, the Consultant shall
meet all applicable requirements for retaining public records. If the Consultant transfers all
public records to the City upon completion of the Agreement, the Consultant shall destroy
any duplicate public records that are exempt or confidential and exempt from public
records disclosure requirements. All records stored electronically must be provided to the
City, upon request from the City’s custodian of public records, in a format that is
compatible with the information technology system of the City. If the Consultant does not
comply with the City’s request for public records, the City shall enforce the provisions of
the Agreement per the terms of the Agreement and may cancel the Agreement.
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IF THE CONSULTANT HAS QUESTIONS REGARDING THE
APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE
CONSULTANT’S DUTY TO PROVIDE PUBLIC RECORDS
RELATING TO THIS AGREEMENT, CONTACT JEANETTE
WILLIAMS, CUSTODIAN OF PUBLIC RECORDS, AT 1225 MAIN
STREET, SEBASTIAN, FL 32958; EMAIL:
jwilliams@Cityofsebastian.org; PHONE: 772-388-8215.
SECTION 20: CODES AND DESIGN STANDARDS
20.1 All services to be performed by the Contractor shall, at a minimum, be in conformance
with commonly accepted industry and professional codes and standards, standards of the
City, and the laws of any federal, state, and local regulatory agencies.
20.2 The Contractor shall be responsible for keeping apprised of any changing laws applicable
to the goods and/or services to be performed under this agreement.
SECTION 21: ASSIGNABILITY
21.1 The Contractor shall not sublet, assign, or transfer any interest in this agreement or claims
for the money due or to become due out of this agreement to a bank, trust company, or
other financial institution without written City approval. When approved by the City,
written notice of such assignment or transfer shall be furnished promptly to the City.
21.2 The Contractor agrees to reasonably participate in the contract “piggybacking” programs
pertinent to local governments.
SECTION 22: SUBCONTRACTORS
22.1 Any Contractor’s proposed subcontractors shall be submitted to the City for written
approval before the Contractor enters a subcontract. SubContractor information shall
include, but not be limited to, state registrations, business address, occupational license tax
proof of payment, and insurance certifications.
22.2 The Contractor shall coordinate the provision of goods and/or services and work product
of any City approved subcontractors and remain fully responsible for such goods and/or
services and work under the terms of this agreement.
22.3 Any subcontract shall be in writing and shall incorporate this agreement and require the
subcontractor to assume the performance of the Contractor’s duties commensurately with
the Contractor’s responsibilities to the City under this agreement; it is understood that
nothing herein shall in any way relieve the Contractor from any of its duties under this
agreement. The Contractor shall provide the City with executed copies of all subcontracts.
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22.4 The Contractor shall reasonably cooperate with the City and other City Contractors and
professionals.
SECTION 23: CONTROLLING LAWS/VENUE/INTERPRETATION/WAIVER OF
JURY TRIAL
23.1 The laws of the state of Florida shall govern the agreement. In the event of litigation
concerning the parties' obligation to the agreement, the jurisdiction and venue of such
action shall be an appropriate State Court in Indian River County, Florida. The parties agree
that in the event of litigation arising from this agreement, each shall waive any right to trial
by jury.
23.2 This agreement is the result of bona fide arms-length negotiations between the City and the
Contractor, and all parties have contributed substantially and materially to the preparation
of the agreement. Accordingly, this agreement shall not be construed or interpreted more
strictly against any one party than against any other party.
SECTION 24: FORCE MAJEURE
24.1 Neither party shall be considered in default in the performance of its obligations hereunder
to the extent that the performance of such obligations, or any of them, is delayed or
prevented by Force Majeure. Force Majeure shall include, but not be li mited to, hostility,
terrorism, revolution, civil commotion, strike, epidemic, pandemic, fire, flood, wind,
earthquake, explosion, any law, proclamation, regulation, or ordinance or other act of
government, or any act of God or any cause whether of the same or different nature,
existing or future; provided that the cause whether or not enumerated in this Section is
beyond the control and without the fault or negligence of the party seeking relief under this
Section.
SECTION 25: EXTENT OF AGREEMENT/INTEGRATION/AMENDMENT.
25.1 This agreement and the exhibit(s) constitute the entire integrated agreement between the
City and the Contractor and supersedes all prior written or oral understandings in
connection therewith. This agreement and all the terms and provisions contained herein,
including without limitation the exhibits hereto, constitute the full and complete agreement
between the parties hereto to the date hereof and supersedes and controls over any prior
agreements, understandings, representations, correspondence, and statements whether
written or oral.
25.2 This agreement may only be amended, supplemented, or modified by a formal written
amendment.
25.3 Any alterations, amendments, deletions, or waivers of the provisions of this agreement
shall be valid only when expressed in writing and duly signed by the parties.
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SECTION 26: NOTICES
26.1 Whenever either party desires to give notice unto the other, it must be given by written
notice, sent by email and/or registered United States mail, with return receipt requested,
addressed to the party for whom it is intended, at the place last specified. The place for
giving notice shall remain such until it shall have been changed by written notice in
compliance with the provisions of this Section.
26.2 For the present, the parties designate the following as the representative places for giving
of notice, to wit:
TO THE CITY:
City Manager Procurement/Contracts Manager
City of Sebastian City of Sebastian
1225 Main Street 1225 Main Street
Sebastian, FL 32958 Sebastian, FL 32958
P: 772-388-8231
E: jessgraham@cityofsebastian.org
TO THE CONTRACTOR:
Lachlan Cheatham, President
7111 Fairway Officer Center, Suite 450
Palm Beach Gardens, FL 33410
Phone: 772-461-2300
Email: lach@palmdaleoil.com
26.3 Written notice requirements of this agreement shall be strictly construed and such
requirements are a condition precedent to pursuing any rights or remedies hereunder. The
Contractor agrees not to claim any waiver by the City of such notice requirements based
upon the City having actual knowledge, implied, verbal or constructive notice, lack of
prejudice, or any other grounds as a substitute for the failure of the Contractor to comply
with the express written notice requirements herein. Computer notification (e-mails and
message boards) shall not constitute proper written notice under the terms of the agreement.
SECTION 27: WAIVER
27.1 The failure of the City to insist in any instance upon the strict performance of any provision
of this agreement or to exercise any right or privilege granted to the City hereunder shall
not constitute or be construed as a waiver of any such provision or right and the same shall
continue in force.
SECTION 28: NO GENERAL CITY OBLIGATION
28.1 In no event shall any obligation of the City under this agreement be or constitute a general
obligation or indebtedness of the City, a pledge of the ad valorem taxing power of the City,
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or a general obligation or indebtedness of the City within the meaning of the Constitution
of the State of Florida or any other applicable laws, but shall be payable solely from legally
available revenues and funds.
28.2 The Contractor shall not have the right to compel the exercise of the ad valorem taxing
power of the City.
SECTION 29: EXHIBITS
29.1 Each exhibit referred to and attached to this agreement is an essential part of this agreement.
The exhibits and any amendments or revisions thereto, even if not physically attached
hereto, shall be treated as if they are part of this agreement.
SECTION 30: SEVERABILITY/CONSTRUCTION
30.1 If any term, provision, or condition contained in this agreement shall, to any extent, be held
invalid or unenforceable, the remainder of this agreement, or the application of such term,
provision, or condition to persons or circumstances other than those in respect of which it
is invalid or unenforceable, shall not be affected thereby, and each ter m, provision, and
condition of this agreement shall be valid and enforceable to the fullest extent permitted by
law when consistent with equity and the public interest.
30.2 All provisions of this agreement shall be read and applied in para materia with all ot her
provisions hereof.
SECTION 31: SURVIVAL
31.1 All express representations, waivers, indemnifications, and limitations of liability included
in this agreement shall survive completion or termination of the agreement for any reason.
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Exhibit “A”
Scope of Services
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SECTION 1 – SCOPE OF WORK
1.1 The City of Sebastian has three (3) underground tanks: one gasoline tank with a 10,000-gallon
capacity, one (1) on-road diesel tank with a capacity of 3,000 gallons, and one (1) off-road diesel
tank with a capacity of 3,000 gallons.
1.2 Compensation
1.2.1 All prices shall be firm for the term of this contract. Fuel costs to be paid by the City to
the Contractor will be based on the DTN FastRacks rack averages for Orlando, plus or
minus a firm fixed price increment. Averages are posted in the DTN FastRacks report
distributed each morning.
1.2.2 Customer facilities located in each county will use the same markups. Fuel markups shall
be based on a price per gallon. Prices and the fixed price increment must be shown on all
invoices.
1.2.3 Fuel costs shall exclude any taxes and/or fees the customer is exempt from paying. All
fuel costs will include the DTN FastRacks averages, the Customer’s Markup, and all
applicable taxes and/or petroleum-associated fees allowed.
1.3 Delivery Location: 505 Airport Drive W, Sebastian, FL 32958
1.4 Annual fuel usage: (based on use between Sept. 1, 2022 – Sept. 30, 2023)
1.4.1 87 octane gasoline – 68,692 gallons
1.4.2 On-road diesel – 6,761 gallons
1.4.3 Off-road diesel – 7,990 gallons
1.5 Supply and Deliver:
1.5.1 Regular Unleaded Gasoline 87
1.5.2 Mid-Grade Unleaded Gasoline 89
1.5.3 Premium Unleaded Gasoline 92
1.5.4 Diesel #2 ultra-low sulfur
1.5.5 Diesel #2 ultra-low sulfur – Red Dye
1.6 Unless otherwise requested at the time of order, deliveries shall be within twenty-four (24) hours
after the order. Deliveries shall be made during normal working hours, 8:00 A.M. to 3:00 P.M.
Monday through Friday, unless otherwise specifically requested by the City when placing the order.
Fuel orders may be made via telephone, Fax, or email.
1.7 All transport truck deliveries will be temperature adjusted to 60 degrees Fahrenheit per the latest
edition of the American Society for Testing and Material (ASTM) Table 6B, Volume II, Petroleum
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Exhibit “B”
Price Proposal
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