Fuel Management System...
Transcript of Fuel Management System...
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STAFF REPORT
MEETING
DATE: July 26, 2016
TO: City Council
FROM: Felicia Newhouse, Public Works Administrative Manager
Russ Thompson, Public Works Director
SUBJECT: RESOLUTION AUTHORIZING THE INTERIM CITY MANAGER TO
TERMINATE THE CITY’S AGREEMENT WITH SCI DISTRIBUTION,
LLC AND EXECUTE AN AGREEMENT WITH MSI FUEL
MANAGEMENT, INC. FOR THE PURCHASE AND INSTALLATION OF
A NEW FUEL MANAGEMENT SYSTEM FOR THE CITY’S VEHICLE
FLEET, INCREASE THE PROJECT BUDGET BY $5,000 (TO $65,000),
AND ADOPT A CATEGORICAL EXEMPTION PURSUANT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
CEQA DETERMINATION: The proposed action includes a finding of Exemption from the
provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA
Guidelines Section 15303.
REQUEST
Consider approving a resolution authorizing the Interim City Manager to terminate the City’s
agreement with SCI Distribution, LLC and execute an agreement with MSI Fuel Management,
Inc. for the purchase and installation of a new fuel management system for the City’s vehicle fleet;
increase the project budget by $5,000 (to $65,000), and adopt a categorical exemption pursuant to
the California Environmental Quality Act (CEQA).
RECOMMENDATION
Approve the resolution.
BACKGROUND
Modern fuel management systems are comprised of both hardware and software components.
Hardware components include unique vehicle identification and fuel pump control units. At the
fueling station, when the fuel nozzle is inserted into the vehicle’s gas tank, the vehicle ID sends a
signal to the pump control, allowing the fuel to be dispensed to the authorized vehicle. While the
vehicle is fueling, data is transmitted from the vehicle to the pump control unit.
The software component collects the data gathered during fueling transactions, including fuel
consumption per vehicle, odometer readings, total run hours, and engine warning light system
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alerts. With a modernized system, fuel usage can be monitored to determine if a vehicle is not
running optimally, or if there is an emissions-related problem that requires attention prior to a
vehicle’s regularly scheduled maintenance. Modern systems reduce costly emergency repairs,
extend the life of the fleet, and provide useful reporting functionality for budget and cost control
efforts. A more detailed explanation of modern fuel management systems can be found in the
November 10, 2015 Staff Report.
HISTORY
In spring of 2015, the City of Novato issued a request for proposals (RFP) to install a new fuel
management system for the City’s 100-plus vehicles and two fueling stations. Three vendors
responded to the RFP – SCI Distribution, MSI Fuel Management, and Fuel Serv.
An interdepartmental committee determined that all three vendors would provide similar levels of
system performance and reliability. Therefore, overall cost was the foremost consideration. The
following chart shows initial and on-going costs for each of the three vendors:
Vendor Purchase Price
(Corp Yard & PD
Locations)
Ongoing Costs for
Support/Licensing
Fuel Serv $61,369 $668/year
MSI Fuel
Management
$59,007 $0/year*
SCI Distribution $55,240 $1,200/year
*The November 10, 2015 staff report incorrectly identified MSI as having a $2,190/year licensing fee. The correct
amount is zero dollars per year. The previously quoted amount is the cost to purchase an extended warranty and should
not have been included in the cost comparisons as a one-year warranty was already included in the purchase price for
all vendors.
On November 10, 2015, staff recommended, and the City Council approved, adoption of
Resolution 70-15 (Attachment 3) authorizing the City Manager to award a contract with SCI
Distribution.
On January 5, 2016, the contract with SCI Distribution was fully executed and a Project Action
Plan Schedule was approved by both parties. Estimated completion date of the entire project was
scheduled for March 1, 2016. After several attempts to motivate the vendor to commence the
project in accordance with the agreement, City staff sent a letter to the CEO on April 5, 2016,
outlining the vendor’s failure to deliver specified product within a reasonable timeline.
In late April and in May of 2016, after continued dissatisfaction with the responses from SCI
Distribution, the vendor selection committee reconvened to discuss the project status and next
steps. Their recommendation to executive staff was to terminate the SCI Distribution contract and
enter into an agreement with the next lowest responsible bidder, MSI Fuel Management, for a new
fuel management system.
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DISCUSSION
Over the past several months, City staff has made many good faith efforts to work with SCI.
Unfortunately, their unresponsiveness to product and service delivery requests in accordance with
the terms of the agreement has resulted in project implementation delays. City staff has lost
confidence in the ability of this vendor to successfully deliver a fuel management system.
Since the City has not made any payments to the vendor, and the vendor has not delivered any
product or services to date, there is no financial detriment to cancelling the contract. The contract
authorizes the City to terminate the agreement at any time, with or without cause, in its sole
discretion upon written notice to the vendor.
CEQA DETERMINATION
Staff recommends that the purchase and installation of a replacement fuel management system at
the Police Department and at the Corporation Yard gas pumps is categorically exempt from the
requirements of the California Environmental Quality Act (CEQA) and the City of Novato
Environmental Review Guidelines pursuant to CEQA Guidelines Section 15303, New
Construction or Conversion of Small Structures.
FISCAL IMPACT
City staff has contacted the next lowest responsible bidder, MSI Fuel Management, and they have
committed to their original price proposal submitted in 2015. The MSI Fuel Management bid is
within the original project budget of $60,000. The number and type of vehicles in the City’s fleet
will have a minor impact on the number and type of hardware that will be in the final product
order. Staff recommends budgeting contingency costs at approximately 10% for a total project
budget not to exceed $65,000. As discussed in the November 2015 staff report (Attachment 2),
$30,000 of the purchase is to be funded from the Technology and Organizational Investments
(TOI) fund within the Capital Improvement Program budget, and $30,000 is to be funded with
Vehicle/Equipment Replacement Fund (Fund 605) monies. The additional $5,000 for the increased
project budget will be funded with unallocated Fund 605 monies.
RECOMMENDATION
Staff recommends the City Council authorize the Interim City Manager to terminate the City’s
agreement with SCI Distribution, LLC and execute an agreement with MSI Fuel Management,
Inc. for the purchase and installation of a new fuel management system for the City’s vehicle fleet,
increase the project budget by $5,000 (to $65,000), and adopt a categorical exemption pursuant to
the California Environmental Quality Act (CEQA).
ATTACHMENTS
1. Draft Resolution
2. November 10, 2015 Staff Report- Available Online
3. Resolution 70-15
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CITY COUNCIL OF THE CITY OF NOVATO
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NOVATO AUTHORIZING THE INTERIM CITY MANAGER
TO TERMINATE THE CITY’S AGREEMENT WITH SCI
DISTRIBUTION, LLC AND EXECUTE AN AGREEMENT
WITH MSI FUEL MANAGEMENT, INC. FOR THE PURCHASE
AND INSTALLATION OF A NEW FUEL MANAGEMENT
SYSTEM FOR THE CITY’S VEHICLE FLEET, INCREASE THE
PROJECT BUDGET BY $5,000 (TO $65,000), AND ADOPT A
CATEGORICAL EXEMPTION PURSUANT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, the City of Novato has existing gas pumps installed at 909 Machin Avenue
(Novato Police Department) and 550 Davidson Street (Novato Corporation Yard) which are aged
and inefficient; and
WHEREAS, the City of Novato has identified an opportunity to improve reporting
functions and operational efficiencies with new fuel management system technologies; and
WHEREAS, a request for proposals was issued and three vendors responded – SCI
Distribution, MSI Fuel Management, and Fuel Serv; and
WHEREAS, SCI Distribution was identified as the lowest responsible bidder with a
purchase price of $55,240 (fifty-five thousand two hundred and forty dollars), and MSI Fuel
Management was identified as the next lowest responsible bidder with a purchase price of $59,007
(fifty-nine thousand and seven dollars); and
WHEREAS, SCI Distribution was selected as the preferred vendor based on price; and
WHEREAS, on November 10, 2015, the City Council of the City of Novato adopted
Resolution 70-15 authorizing the City Manager to award a contract with SCI Distribution, LLC to
purchase a fuel management system for the City’s vehicle fleet, and $60,000 was apportioned for
this contract; and
WHEREAS, SCI Distribution has failed to perform in accordance with the terms of said
contract, including not delivering specified equipment; and
WHEREAS, the termination clause of said contract authorizes the City to terminate the
agreement at any time, with or without cause, in its sole discretion upon written notice to the
vendor; and
WHEREAS, the City of Novato has not made any payments to SCI Distribution and SCI
has not delivered any product or service to date; and
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WHEREAS, funds have previously been apportioned for the project and are available to
award a new contract for a similar scope of work to MSI Fuel Management, the next lowest
responsible bidder; and
WHEREAS, the increased project budget of $5,000 (to $65,000) can be funded with
unallocated funds within the Vehicle/Equipment Replacement Fund (Fund 605); and
WHEREAS, the City Council has previously reviewed the project scope and description
of a similar fuel management system for the City’s vehicle fleet and has determined that the project
qualifies for a categorical exemption pursuant to California Environmental Quality Act (CEQA)
Guidelines Section 15303, New Construction or Conversion of Small Structures.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Novato does
hereby authorize the City Manager to terminate the City’s agreement with SCI Distribution, LLC
and execute an agreement with MSI Fuel Management, Inc. in an amount not to exceed $65,000
for the purchase and installation of a new fuel management system for the City’s vehicle fleet to
improve reporting functions and operational efficiencies; and
BE IT FURTHER RESOLVED that the City Council of the City of Novato authorizes an
increase to the project budget in the amount of $5,000 (to a new project total of $65,000), from the
unallocated balance within the Vehicle/Equipment Replacement Fund (Fund 605); and
BE IT FURTHER RESOLVED that the City Council of the City of Novato does hereby
adopt a CEQA categorical exemption for the project and its associated actions based on the
following findings:
Section 1. Record
The Record of Proceedings (“Record”) upon which the City Council bases these findings
and its actions and determinations regarding the approval of the installation of a replacement fuel
management system pump controller at the Police Department and Corporation yard gas pumps
includes, but is not limited to, the staff report, its attachments, City files and records and other
documents prepared for and/or submitted to the City and/or City Council relating to the installation
of a fuel management system for the City’s vehicle fleet, (2) the evidence, facts, findings and other
determinations set forth in this resolution, (3) the City of Novato 1996 General Plan and its related
EIR, (4) all designs, plans, studies, data and correspondence submitted by the City in connection
with the project, (5) all documentary and oral evidence received at public workshops, meetings,
and hearings or submitted to the City during the comment period related to the project, and (6) all
other matters of common knowledge to the City Council including, but not limited to, City, state,
and federal laws, policies, rules, regulations, reports, records and projections related to
development within the City of Novato and its surrounding areas.
The location and custodian of the records is the Novato Public Works Department, 922
Machin Avenue, Novato, California, 94945.
Section 2. CEQA Findings
The City Council hereby adopts the Statement of Findings and Facts set forth below and
attached hereto and incorporated herein by reference. Based thereon and on the Record as a whole,
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the City Council hereby finds that no significant environmental effects will be created by the
project and its associated development actions. Therefore, the project shall be determined exempt
from CEQA pursuant to Section 15303, New Construction or Conversion of Small Structures, as
discussed below.
Statement of Findings and Facts
CEQA Guidelines Section 15303, New Construction or Conversion of Small Structures,
exempts projects involving the installation of small new equipment and facilities in small
structures, and the conversion of existing small structures from one use to another where only
minor modifications are made in the exterior of the structure. The installation of fuel management
hardware at the Police Department and Corporation Yard gas pumps is considered to be equivalent
to the installation of small new equipment and facilities in small structures. Accordingly, the
installation of a fuel management system pump controller at the Police Department and
Corporation Yard gas pumps meets the criteria for a categorical exemption pursuant to CEQA
Guidelines Section 15303.
* * * * * *
I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City
Council of the City of Novato, Marin County, California, at a meeting thereof, held on the 26th day
of July, 2016, by the following vote, to wit:
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
ABSENT: Councilmembers
____________________________________
City Clerk of the City of Novato
Approved as to form:
____________________________________
City Attorney of the City of Novato
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