2005/06/29 Council Agenda Packet

A. PURPOSE. The purpose of this Agreement is to establish procedures for the Agency to reimburse the City of Everett for the additional cost of purchasing ULSD and the costs associated with potential fuel filter failures resulting from the use of ULSD through June 30, 2006. B. TERM. This Agreement shall commence on July 1, 2005 and shall terminate on June 30, 2006. Either party may terminate this Agreement at any time with or without cause by giving a thirty day (30)written notice to the other party of such termination and by specifying the effective date of the termination. C. REIMBURSEMENT. The City of Everett may apply for reimbursement from the Agency for the additional costs of fueling the City of Everett's entire diesel fleet with ULSD until June 30, 2006, as described in this section. 1. The maximum amount that the City of Everett may be reimbursed by the Agency pursuant to this Agreement is Thirty-Eight Thousand Dollars ($38,000). Of this amount, Twenty-Eight Thousand Dollars ($28,000)may be expended for ULSD reimbursement and Ten Thousand Dollars ($10,000)may be expended for parts, labor and towing services, if necessary,to replace and install fuel filters and to retrieve vehicles that have become inoperable because ULSD has caused fuel filters to become clogged or restricted. Funding for this Agreement comes from the Washington State Department of Ecology Grant No. G0400074. Any funds not used to reimburse the City of Everett shall be returned to the Grant No. G0400074 balance. 2. In support of its request for reimbursement for ULSD, the City of Everett will provide the Agency with a copy of the invoice from the vendor of the ULSD and a document showing the City of Everett paid the invoice. The City of Everett submittal(s)to the Agency shall clearly identify the additional cost (the vendor quoted margin/gallon) of the ULSD above the (vendor bid margin/gallon)cost of standard on-road diesel fuel at the time of purchase. 3. In support of its request for reimbursement for replacement and installation of fuel filters and retrieval of vehicles and equipment that have become inoperable because ULSD has caused fuel filters to clog or become restricted, the City of Everett will provide a written report from the City of Everett Transportation Services Director explaining the nature of the fuel filter failure. In addition,the City of Everett will provide the Agency with an invoice for the fuel filter, installation labor and towing service charge as applicable. Fuel filter replacement invoices shall contain the vehicle identification number, fuel filter model number, date the filter was installed, the time expended installing the filter, and hourly wage of employee performing the installation. 2