REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
VALERIE CLAY, Interim Director, Purchasing Department
SUBJECT
Title
Voyager Fleet Card Services Program for Fueling Card Services
End
RECOMMENDATION(S)
Recommendation
Approve continued participation by County departments in the Voyager Fleet Card Services Program with U.S. Bancorp dba U.S. Bank Corporate Payment Systems for fleet card fueling services with the same terms established under the National Association of State Procurement Officials Participating Addendum No. 7-16-99-27 through June 30, 2022.
(Presenter: Valerie Clay, Interim Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Fleet card fueling services are provided to local government agencies at no cost. County departments utilizing fleet card fueling services are responsible for including fuel expenses in their respective budgets, and fuel costs vary depending on departmental usage. The County currently spends an average of $3.0 million annually for the Voyager Fleet Card Services Program (Program), based on spend for the past two years.
BACKGROUND INFORMATION
The recommendation to continue participation in the Program will allow County departments utilizing fleet card fueling services to continue service without changes to the program. The Program credit card, owned by U.S. Bancorp dba U.S. Bank Corporate Payment Systems (U.S. Bank), allows County employees to refuel at over 6,500 private gas stations. County vehicles are routinely fueled at County owned fueling sites; however, at times, it is necessary for County employees to refuel at non-County owned facilities.
On November 1, 2016 (Item No. 33), the Board of Supervisors (Board) authorized participation in the Program through National Association of State Procurement Officials (NASPO) Participating Addendum No. 7-16-99-27 offered by the State of California, Department of General Services, Office of Fleet and Asset Management through its agreement with U.S. Bank. The original term of the State’s agreement was November 1, 2016 through December 31, 2018. On December 21, 2018, the State extended the term to December 31, 2020. The State signed an additional amendment on October 28, 2020 extending the termination date to June 30, 2021. Agencies participating in the program were not required to submit additional documents as the participation agreements were automatically extended.
In March, the State informed participating agencies that a new vendor, WEX, had been awarded the fleet card fueling services contract and the existing State agreement with U.S. Bank would terminate on June 30, 2021. At that time, the Purchasing Department (Purchasing) began to research the best options available for County fleet card fueling services.
Fleet Management and the Sheriff/Coroner/Public Administrator have used the Program for fleet card fueling services since February 29, 2000. After consulting with these departments, Purchasing determined that it is in the best interest of the County to continue participating in the Program with the services currently in place. In April 2021, U.S. Bank notified Purchasing about the opportunity to participate in the Program under a new established agreement with Sourcewell [Contract 080620-USB]. Sourcewell is a group purchasing organization that offers competitively solicited purchasing contracts for products and equipment to government and other public entities. A review of the Sourcewell contract revealed multiple terms that conflict with the County’s standard contract terms. Purchasing, in addition to multiple agencies across the State, are currently working with Sourcewell to modify the terms of its contract to align with terms that are more favorable to the County.
In order to continue participation in the Program while negotiations continue with Sourcewell, on May 26, 2021, U.S. Bank notified Purchasing that the County would be automatically grandfathered into a continuation of the Program under the same terms established under NASPO Participating Addendum No. 7-16-99-27. Board approval for continued participation in the Program will allow the County to utilize the Program’s fleet card fueling services while Purchasing continues negotiations with Sourcewell. Purchasing will bring a recommendation to the Board before the end of the extension period on June 30, 2022.
PROCUREMENT
The State of California administered the current fleet card fueling services program and allowed local government agencies, including counties, to participate in the Program under NASPO Participating Addendum No. 7-16-99-27 with U.S. Bank.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Supervising Deputy County Counsel, 387-5436) on May 27, 2021; Fleet Management (Ron Lindsey, Director, 387-7870) on May 27, 2021; Sheriff’s Department (Robert Trostle, Lieutenant, 387-0640) on May 28, 2021; Finance (Carolina Mendoza, Administrative Analyst, 387-0294) on June 6, 2021; and County Finance and Administration (Kelly Welty, Deputy Executive Officer, 387-4376) on June 7, 2021.