TO: Mayor and Commission AGENDA DATE: 4/6/2020
FROM: Dr. Marc-Antonie Cooper, Interim City Manager AGENDA ITEM: 8 - A
SUBJECT:
Title
Request for approval of a Contract with Wright Express Financial Services Corporation (WEX) to provide fuel purchases at various locations within the City of Deltona, the State of Florida and nationally. - John A. Peters, III, PE, Director, Public Works & Utilities (386) 490-2522.
Strategic Goal: Fiscal Issues
Body
LOCATION:
Citywide
BACKGROUND:
Background
Currently the City of Deltona provides fuel to City owned vehicles and equipment through two City owned facilities and privately owned gas facilities through the Fuelman Card system. Recently, we have experienced a continuing series of problems with the City owned facilities that is becoming cost prohibitive.
City staff is aware of a gas card system through Wright Express Financial Services Corporation (WEX) that contracts through the State of Florida. The WEX system provides the following benefits over both the City owned facilities and Fuelman:
- WEX is available at 22 locations in Deltona along with statewide and nationally as opposed to two City facilities and 11 locations in Deltona,
- WEX insures that no Federal, State or Local taxes are charged to our fuel purchases,
- WEX provides detailed reporting on fuel usage, odometer readings, etc. that allows management to review fuel usage.
- WEX provides a 1.7% rebate on all fuel purchases as opposed to a rebate program under Fuelman that has resulted in no rebates to the City of Deltona.
- The WEX fuel rates at this time is cheaper than the City can achieve through bulk fuel purchase.
- By using WEX exclusively, the City can maintain fuel storage to be utilized in emergencies such as hurricanes. Staff will insure the product is cycled through to insure quality.
The attached contract is based on a Contract WEX has with the State of Florida (Contract No. 973-163-10-1), and staff recommends that the City of Deltona end its relationship with Fuelman and execute the attached contract with WEX.
Upon approval of this item authorizes any and all necessary actions, documents or budget transfers to facilitate Commission approval and further authorized the Interim City Manager to sign any documents necessary to further Commission approval of this item.
End
COST:
Cost associated with this contract are negotiated with the State of Florida and exempt the City from all Federal, State and Local Taxes on fuel cost
SOURCE OF FUNDS:
The funding for this contract are in the current budget, but would require fund transfers.
ORIGINATING DEPARTMENT:
Department of Public Works & Utilities
STAFF RECOMMENDATION PRESENTED BY:
John A. Peters, III, PE, Director, Public Works & Utilities
POTENTIAL MOTION:
Recommendation
“I hereby move to award the contract with WEX to provide for fuel purchases, and upon approval of this item authorizes any and all necessary actions, documents or budget transfers to facilitate Commission approval and further authorized the Interim City Manager to sign any documents necessary to further Commission approval of this item.”
END