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Council directs staff to research fuel‑rewards options, WEX controls and legal limits for using vendor rewards
Summary
A council discussion explored whether fuel-station rewards could be captured for city benefit and whether staff should pursue vendor programs; staff outlined WEX Bank fuel‑card controls and flagged potential misappropriation concerns if employees keep rewards.
Council members discussed a proposal to use retail fuel rewards programs to capture savings from city fuel purchases and apply those savings to a police appreciation event or other municipal uses.
A council member noted that some gas stations offer cents‑off discounts tied to loyalty cards and asked whether the city could realize similar savings. Staff explained the city currently uses WEX Bank fuel cards, which allow fueling at many locations and provide internal controls — assigned card numbers for each vehicle, monthly reporting, recorded mileage and transaction-level detail — and cautioned that any change would need to preserve those controls.
Staff estimated WEX charges of roughly $4,000 per month for city fuel and suggested a ballpark consumption of about 15,000 gallons per year; members said that volume could make rewards meaningful if they can be collected and accounted for properly. Staff agreed to contact vendors (including QuikTrip/Chevron/Casey’s) and the WEX account representative to determine whether ‘‘double‑dipping’’ (combining WEX discounts and retail loyalty rewards) is permitted and how any reward funds could be captured at the municipal level.
Legal concerns were raised in the discussion. One council member said depriving the city of a redeemable benefit could constitute misappropriation and argued that any reward used for departmental recognition should be quantified and appropriated in the city’s budget rather than claimed informally by employees. Council directed staff to return with options that preserve internal controls, comply with state statutory limits on public funds and outline budgeting or accounting steps for any programed reward use.
Staff will report back with vendor responses and internal-control options before the council considers any budget amendment or formal program.
