TITLE
Recommendation to authorize City Manager to execute a contract with US Bank Voyager Fleet Systems, Inc. to provide fuel cards for the purchase of unleaded gasoline, alternative fuels, fluids and lubricants throughout California for a term of three (3) years with two optional one-year renewals; and adopt resolution under the same terms and conditions afforded the State of California.
DISCUSSION
The Department of Public Works, Fleet Services Bureau has identified an efficiency method for the purpose of consolidating and managing the City's Fleet fuel purchases and travel-related services. The fuel card is for official City business and can only be used by City employees conducting City business or agencies that have fueling agreements with the City. Authorized users will be issued a fuel card based on the restrictive requirements set by the City and their respective departments.
The vendor will provide a web-based software system at no cost to the City that will be used to manage and track detailed transactions for auditing purposes, interface with the Fleet Management System for preventative maintenance, reduce administrative expense, provide better security and control of the payment process with a consolidated monthly billing statement that encompasses all purchases in compliance with authorized City's procurement rules and regulations and increase broad-based usage from merchants across the nation with direct at-the-pump discounts.
The Department of Public Works, Fleet Services Bureau studied the regulations and determined that issuance of fuel cards is the most cost effective method of controlling fuel purchases for the City's vehicles. The objectives of the program are to migrate away from underground storage tanks, expand fueling opportunities for authorized City personnel, improve purchase controls by departments in managing fuel costs, and integrate retail and tank transaction data for departmental use.
Implementing this program with no-out-of pocket expense will allow the City to remove costly underground storage tanks and reduce the need for continuous maintenance required for compliance with State mandated regulations. The City could potentially save millions of dollars in future soil remediation costs.
The Department of Public Works, Fleet Services Bureau wants to "piggyback" with the State of California to implement a City fuel card program. The City Charter permits the purchase of services, supplies, materials, equipment and labor with other governmental agencies, by purchasing, under their contracts when authorized by resolution of the City Council.
This matter was reviewed by Senior Deputy City Attorney J. Charles Parkin on January 04, 2008 and Budget Management Officer Victoria Bell on January 03, 2008.
TIMING CONSIDERATIONS
City Council action on this matter is requested on January 22, 2008, to ensure that a contract is in place in order to consolidate the City's Fleet fuel purchase process that will integrate with the new Fleet preventative maintenance program.
FISCAL IMPACT
No costs will be required by the City to implement this program.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR THE PURCHASE OF UNLEADED GASOLINE, ALTERNATIVE FUELS, FLUIDS AND LUBRICANTS THROUGHOUT CALIFORNIA THROUGH THE CONTRACT BETWEEN U.S. BANK VOYAGER FLEET SYSTEMS, INC. AND THE STATE OF CALIFORNIA
Respectfully Submitted,
Michael P. Conway
Director of Public Works
NAME |
APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |