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Approve a revenue agreement for up to $780,000 with the City of Fairfield Police Department to provide fueling services beginning July 1, 2024 and ending June 30, 2025, with three one-year options to extend; and Authorize the County Administrator or designee to execute this agreement and any subsequent amendments, with County Counsel concurrence, within the approved budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a revenue agreement for up to $780,000 with the City of Fairfield Police Department to provide fueling services beginning July 1, 2024 and ending June 30, 2025, with three one-year options to extend; and
2. Authorize the County Administrator or designee to execute this agreement and any subsequent amendments, with County Counsel concurrence, within the approved budget.
SUMMARY/DISCUSSION:
The Department of General Services is recommending the Board of Supervisors approve a revenue agreement with the City of Fairfield Police Department (FFPD) (Attachment A) for up to $780,000 to provide fueling services for an initial twelve-month period beginning July 1, 2024 and ending June 30, 2025. This Agreement has three one-year options to extend to allow continuation of services. This agreement will provide a bridge in supporting local governments.
FFPD would have non-exclusive access to fueling stations located at 447 Texas Street (24 hours/7 days per week) and 3255 Texas Street (7:00 A.M. to 4 P.M., Monday - Friday) for an estimated amount of 13,000 gallons per month at an estimated amount of $5.00 per gallon, subject to current fuel prices/market trends. The contract is not purely revenue, as the County would be required to increase its purchase of fuel for resale to meet the increased demand resulting from this Agreement.
Consistent with Board of Supervisors’ direction to support public agency collaboration, the Fleet Management Division of General Services offers other public agencies the opportunity to contract with the County for fleet management services. By contracting with outside agencies to provide vehicle rental, maintenance, and fuel services, Fleet Management can spread overhead costs of operations over a larger customer base, resulting in lower rates for County departments and participating agencies. Fleet Management has provided rental vehicles and fueling services to outside agencies since 1993 and currently has 50 vehicles in use by four local agencies. This agreement is for a twelve-month period beginning July 1, 2024 and ending June 30, 2025 with three one-year options to extend. The agreement cannot be canceled by either party during the initial term of one year except in the case of a material breach of the roles, services, and/or responsibilities provided in the Agreement.
FINANCIAL IMPACT:
The Agreement between the County and the City of Fairfield Police Department for up to $780,000 is to provide access to two fueling locations located within Fairfield for a period of twelve months, with three one-year options. New estimated fuel rates will be provided to the City of Fairfield Police Department each February for the following fiscal year and would be incorporated into any extension options.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2023/24 Working Budget.
ALTERNATIVES:
The Board could choose not to approve the agreement; however, this action is not recommended as it is not consistent with the Board of Supervisors’ direction to support public agency collaboration.
OTHER AGENCY INVOLVEMENT:
The City of Fairfield Police Department supports approval of the agreement. County Counsel provided legal guidance and approved the agreement as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION