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HomeMy WebLinkAbout2026 02 09 Consent 303 - City Vehicle and Equipment Fueling Agreement between Seminole County Public Schools and City of Winter SpringsCONSENT AGENDA ITEM 303 CITY COMMISSION AGENDA | FEBRUARY 9, 2026 REGULAR MEETING TITLE City Vehicle and Equipment Fueling Agreement between Seminole County Public Schools and City of Winter Springs SUMMARY In 2006, the City of Winter Springs entered into an interlocal agreement with Seminole County Public Schools to allow fueling of City vehicles and equipment at a Seminole County School Board owned and operated fueling facility located within the City limits In 2025, staff from Seminole County Public Schools approached the City to express a desire to amend the terms of the original agreement. Seminole County Public Schools indicated that while they wish to continue facilitating the City’s use of unleaded and diesel fuel from their facility, however the existing terms of the agreement were prohibitive to their ability to fully recoup the actual costs associated with providing this service to the City. They have also communicated to the City that there are several large capital projects to update the infrastructure. The City benefits from the existing agreement by avoiding the need to maintain the capital infrastructure required for a City owned fueling depot. The arrangement also relieves the City of numerous other additional administrative burdens that would otherwise be necessary to operate and manage its own fueling resource. The primary change proposed in the amended agreement is a revision to the calculation used to determine compensation owed to the School Board. Currently the City pays an Administration Fee of .004 (Four Cents) per gallon to the School Board. Under the proposed agreement the new pricing model would be as follows: During the Initial Term, the price per gallon for fuel sold by School Board to City would be the Bulk Fuel Price + $.12 (Twelve Cents). Following expiration of the Initial Term, the price per gallon for fuel sold by School Board to City throughout the remainder of the Term of the Agreement would be determined at the time of sale by applying the following formula: Price per gallon = Bulk Fuel Price + Administrative Fee (c) “Bulk Fuel Price” means the price of the specific grade of fuel(i.e. gasoline or diesel) set by School Board’s bulk fuel vendor as of the date of purchase by City. 95 (d) “Administrative fee” is calculated for each fiscal year (October 1 – September 30) using the following formula: (.5 x (Average Retail Fuel Price – Average Bulk Fuel Price)). “Average Retail Fuel Price” means the average monthly price during the six-month period prior to March 1 of each year, using monthly retail prices for the specific grade of fuel (i.e. gasoline or diesel) as published by the U.S. Energy Information Administration(EIA)on its website, table name: “Weekly Retail Gasoline and Diesel Prices” for the Lower Atlantic (PADD1C) area: https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_r1z_m.htm “Average Bulk Fuel Price” means the average actual price for the specific grade of fuel (i.e. gasoline or diesel) paid by School Board for its purchase of fuel from School Board’s fuel vendor during the six-month period prior to March 1 of each year. Beginning March 31, 2026, no later than March 31 of each subsequent term year School Board will provide City, in writing, with its calculation of the Administrative Fee that will be in effect for the following fiscal year (October 1 - September 30). After the Initial Term, the Agreement essentially splits the savings between the spread of the average retail price and average bulk price of fuel. Half the difference goes to the City as lower fuel costs, and half goes to the School District to cover operational and maintenance costs related to the fuel depot. The proposed formula approach annually adjusts to market conditions based on average fuel costs. Therefore, the intent is for the City to pay less than retail for fuel costs, and the School District to recover its costs of operating the fuel depot. For reference a copy of the original 2006 interlocal agreement has been attached to this agenda item. FUNDING SOURCE Fuel is budgeted in each departments operational budget. RECOMMENDATION City staff recommends the City Commission authorize execution of the proposed agreement. 96 Page 1 of 10 CITY VEHICLE AND EQUIPMENT FUELING AGREEMENT between SCHOOL BOARD OF SEMINOLE COUNTY, FLORIDA and CITY OF WINTER SPRINGS THIS AGREEMENT (“Agreement) is entered into on the day of ________________, 2025 (“Effective Date”), between THE SCHOOL BOARD OF SEMINOLE COUNTY, FLORIDA, whose address is: Educational Support Center, 400 East Lake Mary Boulevard, Sanford, Florida, 32773-7127 ("School Board), and the CITY OF WINTER SPRINGS, a Florida Municipal Corporation, whose address is: 1126 East State Road 434, Winter Springs, Florida 32708 ("City"). Collectively, the School Board and the City are the “Parties”. WHEREAS, Florida law authorizes interlocal agreements between governmental agencies for the performance of their respective administrative and service functions; and WHEREAS, the City and the School Board recognize that there is an economic, safety and environmental benefit to sharing vehicle and equipment fueling facilities; and WHEREAS, the City and the School Board desire to enter into a mutually beneficial relationship whereby the School Board will provide the City access to the fueling facilities owned and maintained by the School Board and fuel will be provided at prices agreed to by the 97 Page 2 of 10 Parties. NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is hereby agreed as follows: 1. TERM. The initial term of this agreement shall be from October 1, 2025 through September 30, 2026 (“Initial Term”). Thereafter, this agreement shall automatically renew for successive terms of one fiscal year (October 1 - September 30) unless earlier terminated by the Parties pursuant to this Agreement. 2. RESPONSIBILITIES OF THE SCHOOL BOARD. (a) Fuel Facilities Access. The School Board will provide access twenty-four hours a day, seven days a week for the City's vehicles and equipment for the purpose of using the gasoline or diesel fuel dispensing equipment owned and maintained by the School Board. School Board will provide the necessary security cards for the City to utilize the fuel facilities. City recognizes that the School Board has peak demand times during certain periods of the day and the City will make reasonable efforts to avoid fueling during these peak demand periods as identified by the School Board. (b) Fuel Usage Records. School Board agrees to provide monthly fuel usage records for each City vehicle or City piece of equipment properly registered with the School Board as an authorized vehicle and equipment under this agreement. The City shall register all vehicles and equipment subject to this agreement and only those vehicles and equipment registered with School Board will be allowed 98 Page 3 of 10 to utilize School Board facilities. The School Board may report additional information to the City such as mileage or time of use at their discretion in accordance with their normal practice and procedures, however, the report provided to City will contain at a minimum the date, gallons dispensed, and vehicle and equipment number. (c) Fuel Shortages. School Board recognizes the emergency nature of City's public safety and public infrastructure functions and agrees to make reasonable efforts to maximize the available diesel and gasoline inventory on hand prior to and during emergencies and shall not restrict City public safety and public infrastructure vehicles and equipment from using available fuel inventory during times of emergency unless such restriction is necessary to enable the School Board to meet its own fuel needs. (d) Fuel. City acknowledges that the School Board fuel inventory consists of unleaded gasoline and diesel fuel. City also acknowledges that diesel fuel purchased by the School Board is low sulfur intended for on road usage and may include biodiesel from time to time at the discretion of the School Board. (e) Billing. School Board agrees to provide monthly invoices along with fuel usage reports no later than the 10th of each calendar month reflecting fuel purchased by the City for the preceding calendar month. City shall pay all invoices within 30 days following receipt. Fuel costs will be calculated using the number of gallons purchased times the price per gallon as determined pursuant to section 4 below. 99 Page 4 of 10 3. RESPONSIBILITIES OF THE CITY. (a) Payment. City will pay for fuel it purchases pursuant to this Agreement on a monthly basis at the price per gallon as determined in section 4 below. City will pay fuel invoices within 30 (thirty) days of receipt. (b) Inventory. City agrees to provide School Board with a registration list of all vehicles and equipment needing access to School Board Fuel and only scheduled vehicles and equipment will be fueled under this agreement. City will notify School Board of any changes to the vehicle and equipment registration list as soon as reasonably possible prior to fueling. City recognizes that the School Board has peak demand times during certain periods of the day and the City will make reasonable efforts to avoid fueling during these peak demand periods as identified by the School Board. (c) Taxes. City agrees that all federal, state, and local fuel taxes incurred by the School Board for supplying fuel to the City under this Agreement will be itemized on an invoice provided to the City and will be paid by the City. To the extent applicable, City agrees to be responsible for seeking available tax and fuel cost reimbursement directly from government entities. School Board agrees to not seek reimbursement from government entities for fuel taxes actually paid by City to School Board pursuant to this Agreement. 4. FUEL PRICING. (a) During the Initial Term, the price per gallon for fuel 100 Page 5 of 10 sold by School Board to City will be the Bulk Fuel Price + $.12. (b) Following expiration of the Initial Term, the price per gallon for fuel sold by School Board to City throughout the remainder of the Term of this Agreement will be determined at the time of sale by applying the following formula: Price per gallon = Bulk Fuel Price + Administrative Fee (c) “Bulk Fuel Price” means the price of the specific grade of fuel(i.e. gasoline or diesel) set by School Board’s bulk fuel vendor as of the date of purchase by City. (d) “Administrative fee” is calculated for each fiscal year (October 1 – September 30) using the following formula: (.5 x (Average Retail Fuel Price – Average Bulk Fuel Price)). (e) “Average Retail Fuel Price” means the average monthly price during the six-month period prior to March 1 of each year, using monthly retail prices for the specific grade of fuel (i.e. gasoline or diesel) as published by the U.S. Energy Information Administration(EIA)on its website, table name: “Weekly Retail Gasoline and Diesel Prices” for the Lower Atlantic (PADD1C) region, Regular-Conventional Areas: https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_r1z_m.htm (f) “Average Bulk Fuel Price” means the average actual price for the specific grade of fuel (i.e. gasoline or diesel) paid by School Board for its purchase of fuel from School Board’s fuel vendor during the six-month period prior to March 1 of each year. 101 Page 6 of 10 (g) Beginning March 31, 2026, no later than March 31 of each subsequent term year School Board will provide City, in writing, with its calculation of the Administrative Fee that will be in effect for the following fiscal year (October 1 - September 30). 5. EXECUTION OF AGREEMENT. This Agreement shall take effect as of the Effective Date and shall remain in force until terminated pursuant to section 6, and all payments are made current by the City. 6. TERMINATION OF THE AGREEMENT. Either party may terminate this Agreement at any time, by giving the other party one hundred eighty (180) days written notice thereof. The City shall not be relieved of its obligation to compensate the School Board pursuant to this Agreement for fuel purchased up to and including the date of termination. Further, School Board shall have the authority to suspend this agreement upon not less than forty- five(45) days written notice in the event the School Board reasonably determines that its' inventory of fuel (diesel and/or gasoline) is insufficient to meet its' own internal fuel requirements. 7. NOTICES. Whenever either party desires to give notice unto the other, notice may be sent to: FOR THE SCHOOL BOARD: FOR THE CITY: School Board of Seminole City of Winter Springs County, Florida 1126 East State Road 434 400 East Lake Mary Boulevard Winter Springs, Florida 32708 Sanford, Florida 32773-7127 ATTN: SUPERINTENDENT ATTN: CITY MANAGER 102 Page 7 of 10 With a copy to: With a copy to: Seminole County Public Schools City of Winter Springs 822 East State Road 434 1126 East State Road 434 Winter Springs, FL 32708 Winter Springs, Florida 32708 ATTN: DIR. OF TRANSPORTATION ATTN: PUBLIC WORKS DIRECTOR SERVICES By written notice as provided herein, either of the Parties may change the addresses or persons designated for receipt of notices. Notice may be oral with contemporaneous notice in writing by U.S. Mail or by facsimile transmission with contemporaneous written notice by U.S. Mail. Notice by mail shall be deemed received upon mailing to the addressees and addresses stated above. 8. REPRESENTATIONS. Each individual executing this Agreement on behalf of one of the Parties represents that he or she is duly authorized to sign and deliver the Agreement on behalf of such party and that this Agreement is binding on such party in accordance with its terms. Each party has likewise authorized the undersigned to bind it to the terms and conditions contained in this Agreement. 9. GOVERNING LAW. The laws of the State of Florida shall govern the validity, enforcement and interpretation of this Agreement. Venue for any legal action in connection herewith shall lie exclusively in the State or Federal Courts serving Seminole County. 10. PARTIES BOUND. This Agreement is binding upon and shall inure to the benefit of City and School Board, and their successors 103 Page 8 of 10 and assigns. 11. INDEMNIFICATION. The Parties shall each be responsible for its own liabilities arising from its negligent acts, intentional acts, or omissions related to activities undertaken by such party in accordance with the terms of this Agreement. Nothing in this MOU should be construed as a waiver of any privilege, defense or immunity afforded by law to any of the Parties to this Agreement or their respective employees, officers or agents, except to the extent waived and limited pursuant to Section 768.28, Florida Statutes, as that statute may be amended from time to time. 12. AGENCY. At no time shall any employee or agent of the School Board be deemed an employee or agent of the City or an employee or agent of the City be deemed an employee or agent of the School Board for any purpose whatsoever. 13. ENTIRE AGREEMENT. (a) It is understood and agreed that the entire agreement of the parties is contained herein and that this Agreement supersedes all oral agreements, negotiations, and previous agreements between the parties relating to the subject matter hereof. (b) 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, except as otherwise specifically provided in this Agreement. 14. SEVERABILITY. If any provision of this Agreement or the 104 Page 9 of 10 application thereof to any person or circumstance is held invalid, it is the intent of the Parties that the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are declared severable. 15. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be original, but all such counterparts shall, together, constitute but one in the same instrument. 16. PUBLIC RECORDS. Each Party shall each be responsible for maintaining its own public records and for compliance with all applicable public records laws. 17. PRIOR AGREEMENT TERMINATED. The prior agreement dated December 12, 2006 between the parties entitled “SCHOOL BOARD OF SEMINOLE COUNTY - CITY OF WINTER SPRINGS INTERLOCAL AGREEMENT FOR FUELING CITY VEHICLES & EQUIPMENT” is hereby terminated effective September 30, 2025. [Remainder of page intentionally left blank.] 105 Page 10 of 10 IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement for the purposes stated herein. ATTEST: SCHOOL BOARD OF SEMINOLE COUNTY, FLORIDA ____________________________ By:_________________________ Serita Beamon, Superintendent Dr. Robin Dehlinger, Chair Date: _______________________ Date: _______________________ ATTEST: CITY OF WINTER SPRINGS, FLORIDA ____________________________ By:_________________________ Christian Gowan, City Clerk Kevin McCann, Mayor Date: _______________________ Date: _______________________ 106 SCHOOL BOARD OF SEMINOLE COUNTY- CITY OF WINTER SPRINGS INTERLOCAL AGREEMENT FOR FUELING CITY VEHICLES & EQUIPMENT THIS AGREEMENT is entered into on the I iA day of ~ 2006, between THE SCHOOL BOARD OF SEMINOLE COUNTY, Florida, whose address is Educational Support Center, 400 East Lake Mary Boulevard, Sanford, Florida, 32773-7127, hereinafter referred to as the "SCHOOL BOARDH, and the CITY OF WINTER SPRINGS, a Florida Municipal Corporation, whose address is 1126 East State Road 434, Winter Springs, Florida 32708, hereinafter referred to as the "CITY". WIT N E SSE T H: WHEREAS, ,Florida law provides for inter local agreements between governmental agencies for the performance of the respective administrative and service functions; and WHEREAS, the CITY and the SCHOOL BOARD recognize that there is a economic, safety and environmental benefit to sharing vehicle and equipment fueling facilities; and WHEREAS, the CITY and the SCHOOL BOARD desire to enter into a mutually beneficial relationship whereby the SCHOOL BOARD will provide the CITY access to the fueling facilities owned and maintained by the SCHOOL BOARD. NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is hereby agreed as follows: SECTION 1. TERM The initial term of this agreement shall be fromJ~, 1st; 2007 through June 30, 2007. Thereafter, this agreement shall renew for successive terms of one year (July 1 June 30) unless otherwise modified by the parties. 107 SECTION 2. RESPONSIBILITIES OF THE SCHOOL BOARD. a) Fuel Facilities Access. The SCHOOL BOARD will provide access twenty- four hours a day, seven days a week for the City's vehicles and equipment for the purpose of using the gasoline or diesel fuel dispensing equipment owned and maintained by the SCHOOL BOARD. SCHOOL BOARD will provide the necessary security cards for the CITY to utilize the fuel facilities. CITY recognizes that the SCHOOL BOARD has peak demand times during certain periods of the day and the CITY will make reasonable efforts to avoid fueling during these peak demand periods as identified by the SCHOOL BOARD. b) Fuel Usage Records. SCHOOL BOARD agrees to provide monthly fuel usage records for each CITY vehicle or CITY piece of equipment properly registered with the SCHOOL BOARD as an authorized vehicle under this agreement. The CITY shall register all vehicles subj ect to this agreement and only those vehicles registered with SCHOOL BOARD will utilize SCHOOL BOARD facilities. The SCHOOL BOARD may report additional information to the CITY such as mileage or time of use. at their discretion in accordance with their normal practice and procedures, however, the record provided to CITY will contain at a minimum the date, gallons dispensed, and vehicle number. c) Fuel Shortages. SCHOOL BOARD recognizes the emergency nature CITY's Public Safety and Public Infrastructure functions and agrees to make its reasonable efforts to maximize the available diesel and gasoline inventory on hand prior to and during emergencies and shall not restrict CITY Public Safety and Public Infrastructure vehicles and equipment from using available inventory during times of emergency 2 108 unless such restriction is necessary to enable the SCHOOL BOARD to meet its own fuel needs. d) FUEL. CITY recognizes the SCHOOL BOARD inventory is unleaded gasoline. CITY also recognizes the diesel fuel purchased by the SCHOOL BOARD is low sulfur for on road usage and may include biodiesel from time to time at the discretion of the SCHOOL BOARD. e) Billing. SCHOOL BOARD agrees to provide monthly bills not later than the 10th of the month following the month for which billing is rendered and the CITY shall pay all bills within 30 days following rendition of a bill along with the fuel usage reports. Fuel costs will be calculated using Average Cost Pricing to determine the cost to the City. SECTION 3. RESPONSIBILITIES OF THE CITY. a) Payment. The CITY agrees to pay an Administration Fee of 0.04 (Four Cents) per gallon in consideration of the services provided by the SCHOOL BOARD. The Administration Fee is s1,l.bject to review annually. SCHOOL BOARD agrees to provide the CITY 90 (ninety) days written notice prior to changing the Administration Fee. CITY will make payment of fuel invoices within 30 (thirty) days of receipt. b) Inventory. CITY agrees to provide SCHOOL BOARD a schedule of all vehicles and equipment needing access to SCHOOL BOARD Fuel and only scheduled vehicles and equipment will be fueled under this agreement and promptly notify SCHOOL BOARD of any changes. c) Taxes. CITY agrees that taxes paid by the SCHOOL BOARD will be included in the bill to the CITY and paid by the CITY. CITY agrees to seek reimbursement from the State. 'SCHOOL BOARD agrees to not seek 3 109 reimbursement from the State for fuel taxes paid by CITY to senOOL BOARD. SECTION 4 . EXECUTION OF AGREEMENT .This Agreement shall take effect upon execution by both parties and shall remain in force until terminated pursuant to Section 5, and all payments are made current by the CITY. SECTION 5. TERMINATION OF THE AGREEMENT. Either party may terminate this Agreement, at any time, by giving the other party one hundred eighty (180) days written notice thereof. The CITY shall not be relieved of its obligation to compensate the SCHOOL BOARD pursuant to this Agreement for services rendered up to and including the date of termination.Further, SCHOOL BOARD, shall have the authority to suspend this agreement upon not less than forty-five 45) days written notice in the event the SCHOOL BOARD reasonably determines that its' inventory of fuel (diesel and/or gasoline) is insufficient to meet its' internal fuel requirements. SECTION 6. NOTICES. a) Whenever either party desires to give notice unto the other, notice may be sent to: FOR THE SCHOOL FOR THE CITY Superintendent School Board of Seminole County 400 East Lake Mary Boulevard Sanford, Florida 32773-7127 City Manager City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 With a copy to: With a copy to: Deputy Superintendent and Dir. of Transportation Services School Board of Seminole County 822 East State koad 434 Winter Springs, Florida 32708 Winter Springs Public Works Director 1126 East State Road 434 Winter Springs, Florida 32708 4 110 Either of the parties may change, by written notice as provided herein, the addresses or persons designated for receipt of notices. Notice may be oral with contemporaneous notice in writing by U. S. Mail or by facsimile transmission with contemporaneous written notice by U.S. Mail. Notice by mail shall be deemed received upon mailing to the addressees and addresses stated above. SECTION 7. REPRESENTATIONS. The undersigned represents that he is Mayor of the City of Winter Springs; that this document has been reviewed and duly approved for binding execution with all the formalities required by law; and that the CITY has likewise authorized the undersigned to bind the CITY to the terms and conditions contained in this Agreement. SECTION 8. GOVERNING LAW.The laws of the State of Florida shall govern the validity, enforcement and interpretation of this Agreement. Venue for any legal action in connection herewith shall lie only in Seminole County. SECTION 9. PARTIES BOUND. This Agreement is binding upon and shall inure to the benefit of CITY and SCHOOL BOARD, and their successors and assigns. SECTION 10. RECIPROCAL INDEMNIFICATION. To the extent and only to the extent permitted by 768.28 Fla. Stat., the parties. to this agreement agree to indemnify and hold the other party harmless for damage to property or injury to persons resulting from the negligent or wrongful acts of the indemnifying party's officers or employees. Further, at no time shall any employee of the SCHOOL BOARD be deemed an employee of the CITY or an employee of 5 111 6 112 f.J IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement for the purposes stated herein. ATTEST: Z'. . rLL For the use and reliance of Winter Springs only. and City Attomey KL\kl 11\27\06 Clerk CITY OF WINTER SPRINGS BY~~ F. BUSH, Mayor Date: By:SCHOO:;a; qz: wn Barry Gainer: Chairman JOt/I:).. jd.sLDate: As authorized for execution by the Ci ty Commission at its 12/11 , 2006, regular meeting 7 113