SUBJECT/RECOMMENDATION:
Title
Ratify and confirm an increase of $100,000 and an additional $225,000 to purchase order with WEX Bank of Portland, ME for fleet fuel card services in a cumulative not-to-exceed amount of $325,000.00 bringing the total amount to $1,059,800.00 for initial term ending December 31, 2025, pursuant to Clearwater Code of Ordinance Section 2.563(1)(c) Piggyback purchasing. (consent)
Body
SUMMARY:
On August 5, 2021, Council approved a purchase order to Wex Bank in an amount of $320,000.00 for fleet fuel card services through December 31, 2025, with a two-year optional extension in the annual amount of $150,000.00, piggyback from the State of Florida Contract #78181701-21-NASPO-ACS, Fuel Card Services, valid through December 31, 2025, with renewals available.
Additionally, on June 6,2024, Council approved an increase of $348,000.00 bringing the total for the initial term to $668,000.00. This increase was necessary to cover the projected increase in fuel consumption while the City’s fuel site underwent renovations, originally estimated to take four to six weeks. However, due to the extended delays in the fuel site repairs, General Services is requesting additional funding under this contract. Completion of the fuel site is currently anticipated by April 30, 2025.
To maintain continuous fueling services during the ongoing renovations, a 10% increase (66,800.00) was approved by the City Manager on April 10, 2025, bringing the total amount for the initial term to $734,800.00.
Staff has been informed that one of the fuel pumps has failed, rendering the fuel site inoperable. To ensure continued fueling of city vehicles during this period, the City Manager authorized an additional $100,000.00 as a ratification to cover fuel expenses until the item can be brought forward for approval and the site is restored to full operation.
General Services is now requesting authorization to further increase the current purchase order by $325,000.00, bringing the total to $1,059,800.00 through December 31, 2025. Since the shutdown of the fuel site on January 21, 2025, the City has not utilized its existing contract with Jet Age, the awarded vendor for fuel site deliveries, leaving sufficient funds available to support this increase. The City receives a 1.7% quarterly rebate on fuel purchases which is applied directly to our invoices.
APPROPRIATION CODE AND AMOUNT:
Funding for this purchase order will be coded to General Services-Fleet Operations code 5666611-550500, Fuel. Fleet Operations is funded by the Garage Fund, an internal service fund of the City which supports city-wide fleet operations.
STRATEGIC PRIORITY:
These purchases help accomplish strategic objective 1.2. Fleet division operators maintain public infrastructure to deliver effective and efficient services by optimizing City assets and resources.