Modesto approves two vendors for citywide fuel card lock services totaling up to $23.2 million over five years

The Modesto City Council on April 22 approved two contracts to provide card-lock fuel services for the city's fleet, awarding agreements to Stan Boyette & Sons (DBA Boyette Petroleum) of Modesto and Hunt & Sons of Ceres, with a combined five-year not-to-exceed amount of $23,198,063.

Patrick Crowley, public works senior manager, explained a card-lock system is a fleet-specific fueling system that uses secured cards and PINs to control fueling amounts and reduce unauthorized use. He told the council the city solicited bidders and received two responsive local proposals; both vendors scored equally and offered the same discount structure. "What a card lock system is is basically, it it's a gas credit card that's specific to the entity," Crowley said.

Staff recommended agreements with both firms so departments would have local access and redundancy; departments will select a vendor based on proximity, fuel use and operational needs. Crowley said the five-year combined total is not to exceed $23,198,063, with an annual combined estimate of about $4.5 million. He also said years one and two have fixed pricing while years three through five include an escalator.

Crowley noted some fuel costs are recovered through reimbursement agreements with the regional transit agency and two fire districts that use city fueling services. The council approved the resolution authorizing the agreements and authorized the city manager or designee to execute the contracts. Motion by Council Member Williams; second by Council Member Rickey. Roll call recorded ayes from Council Members Alvarez, Rickey, Williams, Wright, Escudia Brayton and Mayor Suze Wallen. The motion carried 6-0.

Ending: Contracts will be executed with both vendors and departments will be assigned vendor access based on operational needs; staff will manage implementation and monitor usage and reimbursements.