Item Coversheet
Public Works

DATE:

4/4/2024

MEMO:

2024-61

TO:

Honorable Mayor Julie Moore Wolfe and City Council Members 

FROM:

Scot Wrighton, City Manager
Matt Newell, Public Works Director

Keith Alexander, Water Production Manager
Jennifer Gunter, Watershed and Lake Manager

 

SUBJECT:  Resolution Authorizing a Lease Agreement with G & H Services, LLC-1 for Nelson Park Marina Fuel System  
SUMMARY RECOMMENDATION:  It is recommended that the City Council approve the agreement with G & H Services, LLC-1 for a fuel system lease at the Nelson Park Marina.       
BACKGROUND:  

The desire of the City Council and Decatur Park District Board to have a convenience store with retail boat gas sales at the Nelson Park Marina will soon become a reality.  The conversion of the west end of the Lake Office to a convenience store is nearing completion as is the transfer of retail boat gas sales to a locally owned business, G & H Services, LLC-1 (G & H).  In order for G & H to provide high quality retail boat gas services, the proposed lease of the City’s fuel system allows G & H to:

 
1. Operate and maintain the City’s fuel system, except the underground storage tank that will continue to be the City’s responsibility.

 
2. Upgrade the current fuel dispensing unit (the pump) and other components as desired.

 
3. Purchase and store gas to sell to the public and to the City.  The City's cost for the fuel will be billed at wholesale cost.  

 
The proposed lease also ensures that the fuel system will be properly maintained by G & H.  Any fuel system improvements made by G & H will become the property of the City if G & H no longer desires to provide retail boat gas sales.

 

LEGAL REVIEW:  The lease agreement was approved by the Legal Department.

 
PRIOR COUNCIL ACTION:  None 
POTENTIAL OBJECTIONS:  There are no known objections. 
INPUT FROM OTHER SOURCES:  None. 
STAFF REFERENCE:  Matt Newell, Public Works Director, 424-2747. Keith Alexander, Water Production Manager, 424-2863. Jennifer Gunter, Watershed and Lake Manager, 424-2834. Staff will be present at the Council meeting. 
BUDGET/TIME IMPLICATIONS:  The City will no longer have labor and some maintenance expenses for retail boat gas operations. 
ATTACHMENTS:
DescriptionType
Resolution Authorizing a Lease Agreement with G & H Services, LLC-1 for Nelson Park Marina Fuel SystemResolution Letter