HomeMy WebLinkAbout22A - SPEC - GAS CARDSCITY COUNCIL MEETING DATE:
MARCH 7, 2017
TITLE:
CONTRACT AWARD TO SVM, LP
FOR PREPAID GAS CARDS
(SPEC. NO. 16 -103)
(STRATEGIC PLAN NO. 7,6)
CLERK OF COUNCIL USE ONLY:
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❑ As Recommended
❑ As Amended
❑ Ordinance on 18' Reading
❑ Ordinance on 2 "d Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Award a contract to SVM, LP for the purchase of prepaid gas cards for a one -year period expiring
March 31, 2018, with the provision for three one -year renewal options exercisable by the City
Manager, in the annual amount not to exceed $33,000, subject to non - substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
The Community Development Agency (CDA) Santa Ana WORK Center manages several
programs including the Workforce Innovation and Opportunities Act (WIOA). Participants in the
program are offered supportive services as defined by WIOA including gas vouchers and OCTA
monthly bus passes to facilitate their ability to find and retain employment. The prepaid fuel -only
card program allows clients to purchase competitively priced gas at their local neighborhood
gasoline stations. Gas cards are issued to clients following a program guideline screening by an
authorized WORK Center case manager and a demonstrated financial need has been identified.
The gas cards are managed to assure that the program maintains fiscal integrity and adherence
to audit controls. Each gas card is tracked by its individual serial number and records are
reconciled monthly. Gas card logs are archived and made available for inspection by the State of
California auditors annual review of records. The WORK Center issues an average of 26 gas
cards per month. In addition to the WORK Center, the Personnel Services Agency purchases
prepaid gas cards as employee incentives for the Commuter Services Program.
A notice inviting bids was advertised on August 24, 2016, on the City's online bid management and
publication system. Preliminary research conducted by staff showed that there are few vendors that
offer a variety of prepaid gas cards. As the deadline approached and no bids had been received,
staff extended the bid solicitation deadline twice, and reached out to potential vendors in an effort to
provide them additional opportunities to submit a bid. On September 30, 2016, the bid solicitation
closed without any bids received.
Due to the lack of vendor participation, the Community Development Agency staff conducted
research and found only three prepaid gas card vendors in California: RPG, Valero and SVM, LP.
These vendors sell gas cards for various brands of gasoline stations including Shell Oil, Exxon
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Contract Award for Prepaid Gas Cards
March 7, 2017
Page 2
Mobil, Arco Gas, and Valero. An online survey conducted in November 2016 revealed that Arco
Gas stations sell the least expensive gasoline. Staff then looked at the number of Arco stations in
Orange County. Results of CDA's analysis disclosed Valero has only three stations while Arco Gas
has numerous stations throughout Santa Ana and Orange County. Based on the referenced
findings, CDA determined that Arco Gas provides the most number of opportunities to purchase
gasoline, based on the number of stations within the City and surrounding areas, and at a lower rate
providing an overall savings to program participants.
SVM, LP, a provider of major gasoline cards and merchant gift cards, is the only provider of Arco
Gas prepaid gas cards. As such, staff recommends approval of the recommended action.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports efforts to meet Goal #7 — Team Santa Ana, Objective #6, (provide
a positive workplace environment that supports the health of its employees and celebrates its
success).
FISCAL IMPACT
Funds are available in the FY 2016 -17 budget, and will be included in future fiscal year budgets
in the following programs and accounts for anticipated expenditure upon exercising the three
one -year renewal options as follows:
Program `
Account No.
Anticipated Expenditure
FY
2016 -17
FY
2017 -18
FY
2018 -19
FY
2019 -20
FY
2020 -21
Personnel Air Quality
Improvement
03109050 -62302
$ 3,000
$ 3,000
$ 3,000
$ 3,000
$ 0
One Stop Program
12318751 -69143
$15,000
$30,000
$30,000
$30,000
$15,000
Totals
$18,000
$33,000
$33,000
$33,000
$15,000
%i
Robert C. Cot
Deputy City N
City Manager
Edward Raya
Executive Director
Personnel Services
CD /sm /sp
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez OIL
Executive Director
Finance and Management Services Agency
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