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APPROVE MOTION TO AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT TO COMPLETE FUEL MANAGEMENT SYSTEM TERMINAL UPGRADES
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Cooperative Purchase Agreement through Sourcewell Contract No. 092920-EJW, to provide the City preferential pricing from E.J. Ward, Inc.
3. Authorize a contract with E.J. Ward, Inc. of San Antonio, TX, in the amount of $522,809.91 for the purchase and installation of new fuel terminals and fuel dispensing pumps, including necessary equipment and software, to complete fuel site upgrades at the Main Police Department, Municipal Utilities Department, and Public Works Operations and Maintenance fueling sites.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The Fleet Section of the Public Works Department is responsible for maintaining over 1,000 vehicles and related pieces of equipment with an annual fuel expenditure of approximately $2.1 million. The existing fuel sites have surpassed their useful life and need to be replaced. Public Works recommends the purchase and installation of three new fuel terminals, six fuel dispensing pumps, and necessary equipment with E.J. Ward, Inc. to complement the implementation of the citywide fuel management system upgrade. The fueling sites are located at the Main Police Department (PD), Municipal Utilities Department (MUD), and Public Works Operations and Maintenance Division (Corp Yard) fueling locations.
It is recommended that Council approve a motion authorizing the City Manager to execute a Cooperative Purchasing Agreement (COOP) through Sourcewell for the purchase and installation of new three fuel terminals and six fuel dispensing pumps, including necessary equipment and software with E.J. Ward, Inc. of San Antonio, TX, in the amount of $522,809.91 (Attachment A). Work is expected to start in summer 2024 and be completed by fall 2024, weather and parts availability permitting.
DISCUSSION
Background
The Public Works Department is responsible for maintaining over 1,000 vehicles and related pieces of equipment, with an annual fuel expenditure of approximately $2.1 million.
In 2016, Public Works conducted an extensive search to purchase a new automated fueling system. E.J. Ward, Inc. was selected for its advanced technology, ease of equipment installation, and comprehensive operator software interface.
On March 7, 2017, by Resolution No. 2017-03-07-1209, Council approved the purchase of the first phase installation of the E.J. Ward fuel management system. The first phase included a new software system and upgraded fuel terminals at the City’s three primary fueling locations: PD, MUD, and Corp Yard. This first phase upgrade was completed in 2018 and replaced the antiquated Gasboy fuel management system that was originally installed in 1995. However, it did not include the upgrade of the physical pumps and dispensers at the fuel islands.
On June 9, 2020, by Resolution No. 2020-06-09-1112, Council approved the second phase of the citywide fuel management system upgrade. This approval included the purchase and installation of 12 fuel terminals at Fire Department Companies 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, and 14.
Public Works has had the opportunity to evaluate the use of the E.J. Ward fuel management system implemented to date, and it continues to work successfully for fueling operations. The system has increased the accuracy of fueling data captured, reduced staffing hours needed to process monthly usage transactions, and increased the accuracy of billing. The upgrades to the PD, MUD, and Corp Yard fuel sites are necessary in order to continue to effectively utilize the fuel dispensing systems and monitoring software.
Present Situation
Staff recommends the purchase and installation of three new fuel terminals and six fuel dispensing pumps and necessary equipment at the PD, MUD, and Corp Yard fueling locations to replace equipment that is broken, surpassed useful life, and complement the implementation of the citywide fuel management system upgrade. This purchase would utilize a COOP with Sourcewell.
Sourcewell is a public agency based in Minnesota that serves as a municipal contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. All Sourcewell contracts have been competitively bid, solicited nationally, reviewed, evaluated by a committee, and recommended to the Sourcewell Board of Directors for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Sourcewell in the amount of $522,809.91 (Attachment A). This includes the purchase and installation of new fuel terminals and fuel dispensing pumps, including associated equipment and software for the PD, MUD, and Corp Yard fueling locations. The specifications for E.J. Ward Inc.’s fuel management system are still available through Sourcewell.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bid process. These findings include:
1. Sourcewell established a COOP with E.J. Ward, Inc. for the purchase of fuel management systems.
2. The E.J. Ward, Inc. COOP was established pursuant to a formal competitive bidding process conducted by Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the leveraged procurement agreements negotiated by Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. E.J. Ward, Inc. worked successfully with the City in all phases of implementation of their fuel management system and specifications for the equipment available through the Sourcewell contract meets the City’s requirements for their equipment type.
FINANCIAL SUMMARY
There is sufficient funding available in the Fleet Project No. WV15002, Miscellaneous Yard/Main Police Fuel, and the Internal Service Fund Equipment Acquisition Account, No. 4530-718-800004-500-000-00-45-000-000, for the purchase and installation of three new fuel terminals, six fuel dispensing pumps, and associated equipment from E.J. Ward, Inc. in the amount of $522,809.91.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Cooperative Purchase Agreement with E.J. Ward, Inc.