ADMINISTRATIVE REPORT
MEETING DATE: September 16, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: September 1, 2026
SUBJECT: Amendment No. 1 to Agreement No. 2025 -192 with AAA Oil, Inc. dba California Fuels & Lubricants
(Increasing by $3,000,000; revised not to exceed $5,623,000 and extending the term by one year) to continue gasoline and diesel fuel supply and delivery services.
RECOMMENDATION:
Staff recommend approval of the agreement.
BACKGROUND:
On October 5, 2022, the City Council approved the annual contract for gasoline and diesel fuel supply and delivery services with AAA Oil, Inc., dba California Fuels & Lubricants, renewable annually thereafter for four (4) consecutive one -year periods upon mutually agreeable terms. The Agreement was mutually extended by the parties over the following years; however, it inadvertently expired on October 4, 2025.
To avoid any interruption in service, the City Council approved Agreement No. 2025 -192 with AAA Oil, Inc., dba California Fuels & Lubricants, on October 8, 2025, with services effective as of Oc tober 5, 2025.
The new agreement was entered into under the City's existing properly procured agreement allowing the services to continue as though the prior agreement had not expired. This provided for uninterrupted gasoline and diesel fuel supply and delivery services to the City.
FISCAL IMPACT:
If approved, Amendment No. 1 to Agreement No. 2025-192 will increase the contract by $3,000,000 for a revised not-to-exceed amount to $5,623,000 allowing the continuance of gasoline and diesel fuel supply and delivery services.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 1 to Agreement No. 2025-192