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HomeMy WebLinkAbout2022-08-23 - AGENDA REPORTS - VOYAGER FLEET CARD PGMO Agenda Item: 8 1. CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: �1 A11�44_1) DATE: August 23, 2022 SUBJECT: VOYAGER FLEET CARD PAYMENT TO U.S. BANK CORPORATE PAYMENT SYSTEMS DEPARTMENT: Public Works PRESENTER: Cruz Caldera RECOMMENDED ACTION City Council: Ratify payments in the amount of $100,994 to U.S. Bank Corporate Payment Systems for the billing period of May 1, 2022 through June 30, 2022. 2. Authorize the City Manager or designee to make future payments to U.S. Bank Corporate Payment Systems for City vehicles and equipment fuel within the spending authority of the adopted annual operating budget. 3. Authorize the City Manager or designee to execute all contracts and associated documents, or modify the award in the event that issues of impossibility of performance arise, subject to City Attorney approval. BACKGROUND Over the past 21 years, the City of Santa Clarita (City) has used the Voyager Fleet Card to fuel the City's fleet of more than 300 vehicles and pieces of equipment. The Voyager Fleet Card is a universal fuel card with extensive fleet management features and is accepted at most service stations, such as Chevron, Shell, Mobile, and other fuel providers within the City. The Voyager Fleet Card program provides monthly fuel management reports that allow staff to track and control routine operation and maintenance costs and parameters, as well as monitor fuel purchases. This is a comprehensive and cost-effective method of meeting the City's fleet fueling needs. Page 1 Packet Pg. 44 O On July 13, 2021, the City Council approved the use of the Voyager Fleet Card program through Sourcewell cooperative purchasing contract 4080620-USB with U.S. Bank Corporate Payment Systems in an amount not to exceed $464,200 annually. However, unprecedented gasoline and diesel fuel price increases have occurred over the past year. In Los Angeles County, a cost escalation of 50 percent occurred from June 2021 to June 2022. As a result of these increases, the contract expenditure authority approved by the City Council has been exceeded by $100,994. The recommended action will allow for ratification of the payment. Due to the volatile nature of fuel pricing and difficulty in predicting costs for future years, staff is recommending the City Manager, or designee, make future payments to U.S. Bank Corporate Payment Systems for City vehicle and equipment fuel in an amount subject to the approval of the adopted annual operating budget. ALTERNATIVE ACTION Other actions as determined by the City Council. FISCAL IMPACT There is no fiscal impact associated with this action. Page 2 Packet Pg. 45