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AUTHORIZE PURCHASE WITH E.J. WARD, INC. TO COMPLETE IMPLEMENTATION OF THE CITYWIDE FUEL MANAGEMENT SYSTEM UPGRADE
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code (SMC) 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. 022217-EJW, formerly National Joint Powers Alliance (NJPA) 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 $224,637.91 for the purchase and installation of 12 fuel terminals to complete implementation of the citywide fuel management system upgrade.
4. Appropriate funds, in the amount of $224,637.91, from the Fleet Internal Service Fund (501-0000-101) to the Fleet Equipment Acquisition account (501-5060-670).
It is also recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of this resolution.
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Summary
Public Works recommends the purchase and installation of 12 fuel terminals with E.J. Ward, Inc. to complete implementation of the citywide fuel management system upgrade. The upgraded terminals will be installed at the following 12 Fire Department sites: Companies 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, and 14.
On March 7, 2017, by Resolution No. 2017-03-07-1209, City Council approved the purchase of the first phase installation of an E.J. Ward fuel management system through a cooperative purchasing agreement. The first phase included a new software system and upgraded fuel terminals at the City’s three primary fueling sites: Police Department Main, Municipal Utilities Department Plant and Public Works Department Municipal Service Center. This first phase was completed in 2018.
It is recommended that Council approve a resolution authorizing the City Manager to execute a Cooperative Purchasing Agreement through Sourcewell, formerly National Joint Powers Authority (NJPA), for the purchase and installation of fuel terminals with E.J. Ward, Inc. of San Antonio, TX, in the amount of $224,637.91 (Attachment A). Funding is available through the recommended appropriation from the Fleet Internal Service Fund.
DISCUSSION
Background
The Public Works Department is responsible for maintaining 1,149 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. Consideration was given to vendors providing systems that have been awarded competitively bid contracts through national or regional purchasing cooperatives. These cooperative purchasing agreements are typically used by the City to lower costs by simplifying the procurement process and obtaining volume purchase pricing. After review by a Selection Committee, 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, City Council approved the purchase of the first phase installation of an 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 sites: Police Department Main, Municipal Utilities Department Plant, and Public Works Department Municipal Service Center. This first phase upgrade was completed in 2018 and replaced the antiquated Gasboy fuel management system that was originally installed in 1995.
Public Works has had the opportunity to evaluate use of the E.J. Ward fuel management system implemented to-date. 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. There are 12 remaining fueling sites currently utilizing the legacy system, Gasboy, that need to be converted to the E.J. Ward fuel management system.
Present Situation
Staff recommends purchase and installation of 12 fuel terminals to complete implementation of the citywide fuel management system upgrade utilizing a Cooperative Purchasing Agreement with Sourcewell. The upgraded terminals will be installed at the following 12 Fire Department sites: Companies 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, and 14. Sourcewell, formerly known as NJPA, is a public agency based in Minnesota that serves as a 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 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.
The specifications for E.J. Ward’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 Cooperative Purchasing Agreement with E.J. Ward, Inc. for the purchase of fuel management systems.
2. The E.J. Ward, Inc. Cooperative Purchasing Agreement 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 the first phase implementation of their fuel management system.
The recommended resolution authorizes the purchase and installation of 12 fuel terminals with E.J. Ward, Inc. of San Antonio, TX, through the Sourcewell cooperative purchasing agreement for a total cost of $224,637.91 (Attachment A). Funding is available through the recommended appropriation from the Fleet Internal Service Fund.
FINANCIAL SUMMARY
Sufficient funding is available in the Fleet Internal Service fund balance (account no. 501-0000-101) to appropriate to Fleet Equipment Acquisition account 501-5060-670 in the amount of $224,637.91 for the purchase and installation of 12 fuel terminals from E.J. Ward, Inc.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Quote from E.J. Ward, Inc.