Title
Airports, a division of the Chief Administrative Office, recommending the Board approve and authorize the Chair to sign the First Amendment to Agreement for Services 8387 to reflect the merger of CityServiceValcon, LLC with Coleman Oil Company, LLC for aviation fuel and related support services for the Placerville and Georgetown Airports, which includes amended billing and settlement procedures effective for the period beginning April 1, 2026, and continuing through the remaining term of the Agreement to February 12, 2029, and to include several administrative updates, with no change to the total compensation amount of $3,500,000.
FUNDING: Placerville and Georgetown Airport Enterprise Funds.
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DISCUSSION / BACKGROUND
The County of El Dorado is the owner and operator of two public airports, one located at 3501 Airport Road in Placerville, the Placerville Airport, and the other at 6245 Aerodrome Way in Georgetown, the Georgetown Airport, with operations and maintenance of these two airports administered by the County’s Chief Administrative Office. The Airports are equipped to sell fuel to airport-based and itinerant pilots and fuel sales provide income to help support the operation of the Airports.
On February 6, 2024, the Board awarded Request for Proposals (RFP) 23-405-064 and approved Agreement 8387 with CityServiceValcon, LLC for aviation fuel and related support services. The Division was recently informed that there was a merger effective April 1, 2026, between CityServiceValcon, LLC and Coleman Oil Company, LLC, and the company has a new Employer Identification Number and will provide the same services to the County under the name of Coleman Oil Company LLC, doing business as CityServiceValcon, LCC which resulted in the need to amend Agreement 8387. Agreement 8387 is also being amended to include several administrative updates.
By operation of this merger, Coleman Oil Company LLC, doing business as CityServiceValcon, LCC will assume all of CityServiceValcon, LLC’s duties, responsibilities, and obligations, including insurance and indemnity obligations, for aviation fuel and support services under the same terms and conditions of the Agreement, including, at a minimum, any liabilities or obligations for support services prior to the April 1, 2026, effective date of the merger.
CityServiceValcon, LLC will execute an Assignment, Assumption, and Consent Agreement granting, assigning, transferring, conveying, delivering, delegating, and setting over unto Coleman Oil Company, LLC doing business as CityServiceValcon, LCC all CityServiceValcon, LLC’s rights, title, interest, duties, obligations, and liabilities in, to, and under Agreement 8387. CityServiceValcon, LLC’s Assignment, Assumption, and Consent Agreement is incorporated as Exhibit D into the First Amendment to Agreement 8387, effective as of April 1, 2026.
The Department also added to the First Amendment to Agreement 8387 the option to participate in the Phillips 66 WingPoints Program and the Phillips 66 Co-op Program at the Placerville Airport. The WingPoints Program is a customer rewards initiative offered at participating Phillips 66-branded airports, designed to give pilots and aviation customers more value for their fuel purchases. Pilots can obtain a WingPoints Rewards Card at any participating airport and enroll in the program. Pilots and aviation customers earn at least 10 points per gallon of fuel purchased upon presenting the WingPoints Rewards Card. Points can be redeemed for a wide range of items, including retailer and restaurant gift cards and pre-paid Visa debit cards, or they can be donated to charity.
The County will pay Coleman Oil Company LLC, the standard $.002 per Wingpoint offered by the Placerville Airport for eligible Phillips 66 WingPoints rewards participants for fuel purchases at the Placerville Airport, minus $.0005 per wingpoint earned of Phillips 66 Co-op funds for the billing period. In addition, when participants use their Phillips 66 credit card, the County will not pay any credit card fees which will also offset the minimal cost of the program. Credit card fees average approximately $0.23 per gallon, so this incentive to utilize the Phillips 66 Card may increase overall revenue.
The WingPoints Program increases customer loyalty and repeat business by offering tangible rewards for fuel purchases. Having the option to participate in the WingPoints Program gives pilots a simple, flexible way to earn and redeem rewards while fueling at the Placerville Airport, boosting both customer satisfaction and airport engagement.
CityServiceValcon, LCC delivered fuel prior to the County becoming aware that an amendment to Agreement 8387 would be necessary because of the new Employer Identification Number. In addition, CityServiceValcon, LCC continued to deliver fuel while the First Amendment was being prepared and amendment language was worked out between the County and CityServiceValcon, LCC and it was understood by all involved that the outstanding invoices for the fuel CityServiceValcon, LCC delivered would be processed for payment when the First Amendment was finalized and approved by the Board of Supervisors.
ALTERNATIVES
The Board could choose not to approve the First Amendment to Agreement for Services 8387, recognizing that this will result in non-payment to CityServiceValcon, LCC for fuel that was already delivered, as well as a lengthy lapse in fuel sales and related support services at both airports until a new RFP process can be conducted and a new agreement can be put in place.
PRIOR BOARD ACTION
Legistar file 23-1732 - February 6, 2024 - Awarded RFP 23-405-064 and approved Agreement for Services 8387 with CityServiceValcon, LLC for the purchase of aviation fuel and related support services.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement & Contracts Division, County Counsel, Risk Management, and Human Resources.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Based on actuals from prior years, it is anticipated that revenue from the sale of fuel will provide sufficient funds to support fueling operations at the Placerville Airport. Fuel costs are very volatile, and the County realizes a greater profit when there are more fuel sales. Sufficient funds have been budgeted in the Placerville and Georgetown Airport Enterprise Fund budgets for Fiscal Year 2026-27 and will be included in succeeding budgets to provide for fuel and related service costs associated with Agreement 8387.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain the Chair’s signature on two original copies of the First Amendment to Agreement 8387.
2) Forward one fully executed original copy of the First Amendment to Agreement 8387 to the Chief Administrative Office, Airports Division, to the attention of Laura Schwartz.
DEPARTMENT FOLLOW UP ACTIONS
Transmit one fully executed original copy of the First Amendment to Agreement 8387 to CityServiceValcon, LCC.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer, Airports Director