Title
Consider a memorandum/resolution authorizing the renewal of the City's fuel services contract with FleetCor Technologies Operating Company, LLC., in an amount not to exceed $2,500,000 per year.
Summary
DATE: March 15, 2022
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Renewal of Fuel Services Contract with Fleet
BACKGROUND AND FINDINGS:
Prior to November 2013, all City vehicles and equipment were required to obtain fuel from only the fueling station at Fleet Services. That routine was extremely resource inefficient. In November of 2013, the City contracted with Texas Fleet Fuel LTD., now FleetCor Technologies Operating Company, LLC., to provide fuel at the Fleet Services location, and fuel card services which allows for the purchase of fuel throughout the city and nationwide at discount pricing. The existing program has proven to be efficient, secure, and cost effective. The current contract with FleetCor expires March 31, 2022 and is being requested to be renewed.
FleetCor provides purchasing controls, reporting, and on-line account management which helps to manage the fleet and all fueling activities. FleetCor also provides on-site fuel to the City's three underground storage tanks located at Fleet Services. The contract pricing for on-site fuel is $0.075 per gallon above rack price, for all fuels. Rack Price is the wholesale price applied when the truck is loaded and is determined by the Oil Price Information Service (OPIS). The City will receive rebates on off-site fuel purchases. The offsite rebates will be $0.04 per gallon for unleaded and $0.08 per gallon for diesel. The rebates will be applied to the City's weekly invoice. The estimated annual savings compared to retail pricing is $50,765. The total on-site gallons purchased is estimated to be 422,240 gallons and the total offsite gallons purchased is estimated to be 331,760 gallons.
The FleetCor contract utilizes cooperative contract pr...
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