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HomeMy WebLinkAboutGasoline Card ProgramRaqu rose Gaadtioe Card Program for Miami Police .Department Motorcycle Fleet t Letters of Interest 99-00-111 tnmarizes the evaluation process • to select a supplier. for. participation in the Gasoline for the provision of premium 93-octant gasoline to the Merle Fleet of the Miami Police Department, conducted by the Department of Purchasing, in cooperation with the Miami Police Department Finance Department, and Offlcc of Internal Audits: It. Batrkground The Miami Police Department contacted Purchasing to seek a solution to secure a:gas©line provider to supply premium 93-octane gasoline for its Motorcycle Fleet. The Police Department currently has nineteen (19) motorcycles in its Fleet. These motorcycles require only premium 93•octane gasoline. Upon obtaining additional information on this issue, we learned each individual motorcycle officer was required to purchase with his or her own funds premium 93-octane gasoline, and seek reimbursement for the same, for their City -owned motorcycles; We further became aware of the following: (1) the required gasoline was1191 available for purchase through the Miami -Dade County contract currently utilized by the City to provide fuel to its Fleet; (2) the City's fueling station does not offer a pump for premium gas; (3) installation of a pump for this purpose would be cost - prohibitive, according to the City's Fleet' Manager; arid (4) the Director of Finance advised the. continuation of the practice of employee reimbursement for the purchase of fuel was inconsistent with sotutd accounting practices. In order :to provide a mechanism for officers to purchase gasoline without utilization of their own. funds, it was determined to be in the City's beat interests to implement a gas card program for the. Motorcycle Fleet. This program would be implemented by securing a pool of qualified service stations using one type of dealer, i.e. Shell, Amoco, Exxon, Mobil, etc:, from whom City motorcycle officers could purchase premium gasoline. To determine the most advantageous gas card program, the Department of Purchasing sought to establish requirements, including safeguards and controls, for the purchase; These City requirements included the following: • Access to service stations located in the City of Miami corporate limits only; • Availability of sufficient number of service stations located in City limits; • Customized. reporting„ .detailing all purchases and specifying the type of gas purchased, i.e. prctttium; • Restriction codes limiting feel purchases only; • Tracking options; • In -Station card option, ;Rebates on fuel purchases; pt e - Awn# of CAOSOhiwr Care ProYmrr 1. Ev*ingtion Department of Purchasing initiitllyevaluated the major gasoline stations within City limits. e stations included Shell, Exxon, Mobil and Amoco. Amoco was; removed from consideration because it was tillable to meet the detailed reporting requirements of the City in reporting the type of gas purchased; i.e. premium. Mobil (9) and Exxon (9) gas stations were eliminated from 'tardier consideration due to insufficient number of stations located in the City. Only one (1) fuel provider, Shell, who met all of the City's requirements; with a total of twenty-one (21) stationer located in the City► remained in consideration. As a result, 'Purchasing issued a Request for Letters of Interest seeking authorized Shell gasoline dealers located within the corporate limits of the City to participate in the Shell Fleet Plus/One Station Card Plan for the City, to provide premium 93-octane gasoline to the Motorcycle Fleet of the Miami Police Dcpartmot, A. Shell Gasoline Deniers A. total of twenty-one (2:1) Shell service stations were identified and mailed the 'Request for Letters. of Interest. Eighteen (18) Shell dealers expressed interest, responded, and were deemed qualified. A List of those qualified Shell dealers was prepared by Purchasing denoting the location of .each station on a City map. The location of the stations was adequately found throughout the City of Miami. Shell vs. Exxon While preparing the results to forward to the Miami Police Department, Purchasing was contacted by the Exxon and Mobil representative located in Miami -Dade County, who reported that Exxon and Mobil had merged to become one company, ExxonMobil, and they would meet the City's requirements. The ExxonMobil representative asked the City to re -consider its decision to proceed with Shell es its recommended fuel provider, as the new company now represented a sufficient number of dealers. Purchasing evaluated several factors to makeits decision on whether to proceed with the original recommendation (Shell). or to start over and solicit services from ExxonMobil. Purchasing evaluated several factors, ee°h►cte included (1) card fuss; (2) security and reporting options; and (3) the cost_ of fuel of both ExxonNteinil and Shell; Purchasing could find no difference in card fees in that both programs waived fees for i:n+°ernmeent entities. Additionally, there also was no significant, difference in reporting option, available from both programs. In evaluating the reporting options, the Director of Finance was c nn•ulied for input and found no objections to any available reporting option by either gas card program m r'ldditieurally, Purchasing soulta Oct determine if there was .a difference in cost to the City, on a per gallon basis, for fuel. Research e as conducted at five (5) randomly selected Exxon, Mobil and Shell gasoline stations on September I too 2000 March 1, 2001, and June 8, 2001. Generally speaking, the cost analysis revealed d ExxoriMobil to be approximately 10 cents less expensive, per gallon, for premium 93Mectane than Shell. The average overall savings on an annual basis, utilizing the information provided by the Miami Police Department, i.e. nineteen (19) motorcycles in its fleet, using 7600 gallons, resulted in an expected savings to the City of$►775.00 if it utilized ExxonMobil to provide its gasoline. A meeting was held with the Police Department and Purchasing staff to review the responses and analysis and make recommendations. It was determined the gas card 06/1 001 ilkire 2 - ktaiyxra of Gawane Card Program program offered by ExxonMobil was in the best interests oldie City based on fuel costs. Putuhatjing issued a new Request for Letters of interest to ExxonMobil dealeti:tocated within the City. B. EzxonMobil Gasoline Dealers A total . of eighteen (18) ExxonMMtobil service stations were identified and mailed the Request for Letters of intact, and fifteen (15) ExxonMobil dealers expressed interest, responded, and were deemed qualified, A List of those qualified ExxonMobil dealers was prepared by Purchasing denoting the location of each station on a City map, The location of the ,stations was adequately found throughout the City of Miami. Approval of Standard. Operating Procedure: SOP 10 by . Police Department in order to adopt a uniform: policy and establish guidelines for use of the gas card, also known as the Exxon Fleet Card, by the motorcycle fleet, Standard Operating Procedure, (SOP) 10 was drafted by the Commanding Officer of the Enforcement Detail, This SOP establishes procedures for the use of the Exxon Fleet Card / Speed Pass Program, its restriction to prcmium'93-octane firel only, and its tinted use to various gasoline stations located within the City. The Card will be maintained by the service stations under contract, and will be used solely for the 'refueling of Miami Police 'Harley Davidson motorcycles. The Speed Pau Program would be maintained by each assigned Fleet Officer, and would also restrict purchases to gasoline stations located within the City: The SOP timber stipulates that any violations, or deviation of the policy, will be deemed a violation of Departmental Orders, and officers who violate the SOP shall be subject to disciplinary action. The Commanding Officer of the Enforcement Detail .and the Police Major for the MPD 'Business Management Section, approved the SOP for implementation. V. Approval of SOP,.1i0 y tote Chine of Internal Audits & Reviews In order to ensure a viable audit trail :for the use of the Exxon Fleet Card at qualified ExxonMobil deniers, Purchasing contacted the Director of the Office of internal Audits for consultation and review of the SOP. The Director of the Office of internal Audits has reviewed and approved SOP 10 to ensure officer accountability and the City's ability to create an audit trail regarding the use of the Exxon Fleet Card I Speed Pass Program. VI. Recommendation Based upon the above analysis, it . is the recommendation of the Purchasing and Police Departments that ExxonMobil gasoline dealers located within the City of Miami, who responded and are deemed qualified, be authorized to provide premium 93-octane gasoline utilizing its Exxon Fleet Card to the Motorcycle, Fleet, and provide an option to add additional ExxoaatMobfl gasoline dealers in the City when deemed necessary. implementation of the Exxon Fleet Card / Speed Pass Program will occur only when both the officers and ExxonMobil gasoline dealers are familiarized with the program, policy and procedures for use of the Exxon Fleet Card / Speed Pass Program, and consequences .for violation of the same. 06/1 001 3