Joint Vehicle Fuel Sales Agreement with Dubuque County Copyright 2014
City of Dubuque Consent Items # 7.
ITEM TITLE: Joint Vehicle Fuel Sales Agreement with Dubuque County
SUMMARY: City Manager recommending approval of an agreement with
Dubuque County for the sale of vehicle fuel for Dubuque
County Sheriff vehicles.
RESOLUTION Authorizing a Purchase Agreement between
the City of Dubuque and Dubuque County to allow Dubuque
County to purchase vehicle fuel from the City of Dubuque
Municipal Services Center's Vehicle Refueling Facility
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Vehicle Fuel Sales to Dubuque County-MVM Memo City Manager Memo
Staff Memo Recommendation Staff Memo
Fueling Agreement Resolution Supporting Documentation
Joint Fueling Agreement Supporting Documentation
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Vehicle Fuel Sales to Dubuque County
DATE: December 26, 2016
Since 1988, Dubuque County Sheriff vehicles have been refueling at the City's vehicle
refueling station. With the Iowa ethanol fuel tax increasing from 19.3 to 29.3 cents per
gallon in 2015, the County asked that the original fuel sale/purchase agreement be
revisited.
Public Works Director John Klostermann recommends City Council approval of an
agreement with Dubuque County for the sale of vehicle fuel for Dubuque County Sheriff
vehicles. The term of the new agreement continues until terminated by either party,
with 30 days written notice to the other party.
Under the new agreement, the City would:
• Eliminate the monthly facility maintenance fee of $100 per month;
• Eliminate the 13 cents per gallon fee for staff support related to record keeping;
and
• Would retain the current fuel tax of 29.3 cents per gallon for fuel island
infrastructure maintenance and staff support for record keeping and billing
services.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
ZVL�l
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
John Klostermann, Public Works Director
2
Dubuque
THE CITY OF C
Du B E A l-Amedea RY
.1
Masterpiece on the Mississippi 2007•2012.2a13
TO: Michael C. Van Milligen, City Manager
FROM: John Klostermann, Public Works Director
SUBJECT: Vehicle Fuel Sales to Dubuque County
DATE: December 22, 2016
I
INTRODUCTION
The purposes of this memorandum are to provide information and recommend approval
for the attached agreement for the sale of vehicle fuel to Dubuque County.
BACKGROUND
Since 1988, County Sheriff vehicles have been refueling at the City's vehicle refueling
station. With the Iowa ethanol fuel tax increasing from 19.3 to 29.3 cents per gallon in
2015, the County asked that the original fuel sale/purchase agreement be revisited.
DISCUSSION
Under the current agreement, the County is charged the net cost of E87 fuel plus a
monthly facility maintenance fee of$100 per month and a 13 cent per gallon fee for staff
support for record keeping and billing services. Also, the City retains the Iowa fuel tax
rebate in consideration of its considerable capital investment in the vehicle refueling
stations it constructed in 1988 and 2005.
Under the new agreement, the City would;
• eliminate the monthly facility maintenance fee of $100 per month;
• eliminate the 13 cents per gallon fee for staff support related to record
keeping, and,
• would retain the current fuel tax of 29.3 cents per gallon for fuel island
infrastructure maintenance and staff support for record keeping and billing
services.
In total, under the proposed agreement, the margin charged would decrease from the
current 42.3 cents to 29.3 cents per gallon. It would also be less than the 32.2 cents
per gallon charged to County for many years before the increase in the State's gasoline
tax in March of 2015.
Upon entering into the new agreement, the City would rebate to the County the 10 cents
per gallon fuel tax increase from March 1, 2015. As a matter of perspective, fuel sales
to the County from March 1, 2015, through December 11, 2016, have totaled 68,245
gallons. The rebate to the County, as of the noted date, would be $6,824.50.
The term of the new agreement continues until terminated by either party with thirty (30)
days written notice to the other party.
Fuel sales to the County in recent years have averaged 40,275 gallons annually. Under
the proposed agreement, the City would net approximately $11,800 per year in
additional revenue for its vehicle maintenance activity.
The Dubuque County Supervisors approved the agreement at its December 12, 2016,
i
meeting.
ACTION STEP
I request your approval of the attached vehicle fuel sales agreement to Dubuque
County.
i
CC: Crenna Brumwell, City Attorney
Barry Lindahl, Senior Council
Kevin Cornwell, Equipment Maintenance Supervisor
Renee Tyler, Assistant Public Works Director
I
ii
I
2
RESOLUTION NO. 1-17
AUTHORIZING A PURCHASE AGREEMENT BETWEEN THE CITY OF DUBUQUE
AND DUBUQUE COUNTY TO ALLOW DUBUQUE COUNTY TO PURCHASE VEHICLE
FUEL FROM THE CITY OF DUBUQUE MUNICIPAL SERVICES CENTER'S VEHICLE
REFUELING FACILITY
Whereas, the City of Dubuque and Dubuque County wish to enter into an
agreement allowing Dubuque County to purchase vehicle fuel for its designated vehicles
from the City of Dubuque's vehicle refueling facility at 925 Kerper Court; and
Whereas, the cost of the fuel to Dubuque County will be $0.293 per gallon above
the City of Dubuque's actual purchase cost; and
Whereas, said cost shall remain fixed through June 30, 2017 and will be subject
to adjustment by the City of Dubuque for each fiscal year of renewal thereafter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Mayor is hereby authorized to execute the attached Purchase
Agreement between the City of Dubuque and Dubuque County to allow Dubuque County
to purchase vehicle fuel from the City of Dubuque Municipal Services Center's vehicle
refueling facility.
Passed, approved and adopted this 3rd day o January, 2017.
Roy D. Mayor
Attest:
Trish L. Gleason, Assistant City Clerk
F:\USERS\tsteckIe\LindahI\ResoIutons\City-CountyFueIPurchaseResoIution1 2-1 5_1 2101 5.docx
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE COUNTY, IOWA
The Agreement dated for reference purposes the/.;2., day of
201, is is entered into by and between the City of Dubuque, Iowa and Dubuque
County, Iowa.
Whereas, the City of Dubuque and Dubuque County wish to enter into an
agreement allowing Dubuque County to purchase vehicle fuel for its designated
vehicles from the City of Dubuque's vehicle refueling facility at 925 Kerper Court.
NOW, THEREFORE, IT IS AGREED BETWEEN THE PARTIES
HERETO AS FOLLOWS:
SECTION 1. Dubuque County (County) will be issued fuel purchase personal
and vehicle identity cards by the City of Dubuque (City) for the purpose of
refueling County vehicles at the City of Dubuque Municipal Services Center
(MSC).
SECTION 2. City agrees to sell fuel to County at the MSC at a cost of $0.293
per gallon higher than City's net purchase cost. Net purchase cost means final
cost after fuel tax rebate. City will provide County with a monthly statement
indicating that month's fuel sales to County. City will collect payment through
retention of Iowa vehicle fuel tax rebate of $0.293 per gallon.
SECTION 3. The cost per gallon in Sec. 2 is fixed through June 30, 2017 and
is subject to adjustment by City in its sole discretion effective on the first day of
each fiscal year thereafter by written notice to County not less than sixty (60)
days prior to the first day of each fiscal year.
SECTION 4. This Agreement commences December 1, 2016 and continues
until terminated as provided herein.
SECTION 5. This Agreement may be terminated by either party with thirty (30)
days written notice to the other party.
CITY OF DUBU T EIOW DUBUQ E CO
By:By: 1�
Roy D. i ol, Mayor Wayne emmer, Chairperson
Attest: NCD R_ � Attest: '9`
tin-FfrittattirEttyal Mary Ann Specht,
Trish L. Gleason, Administrative Assistant
Assistant City Clerk
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE COUNTY, IOWA
The Agreement dated for reference purposes the /Y da of _ c --e,,,
7�'�u
201_, is entered into by and between the City of Dubuque, Iowa and Dubuque
County, Iowa.
Whereas, the City of Dubuque and Dubuque County wish to enter into an
agreement allowing Dubuque County to purchase vehicle fuel for its designated
vehicles from the City of Dubuque's vehicle refueling facility at 925 Kerper Court.
NOW, THEREFORE, IT IS AGREED BETWEEN THE PARTIES
HERETO AS FOLLOWS:
SECTION 1. Dubuque County (County) will be issued fuel purchase personal
and vehicle identity cards by the City of Dubuque (City) for the purpose of
refueling County vehicles at the City of Dubuque Municipal Services Center
(MSC).
SECTION 2. City agrees to sell fuel to County at the MSC at a cost of $0.293
per gallon higher than City's net purchase cost. Net purchase cost means final
cost after fuel tax rebate. City will provide County with a monthly statement
indicating that month's fuel sales to County. City will collect payment through
retention of Iowa vehicle fuel tax rebate of $0.293 per gallon.
SECTION 3. The cost per gallon in Sec. 2 is fixed through June 30, 2017 and
is subject to adjustment by City in its sole discretion effective on the first day of
each fiscal year thereafter by written notice to County not Tess than sixty (60)
days prior to the first day of each fiscal year.
SECTION 4. This Agreement commences December 1, 2016 and continues
until terminated as provided herein.
SECTION 5. This Agreement may be terminated by either party with thirty (30)
days written notice to the other party.
CITY OF DUBUQU
IOWA
By: ✓ 1 '�a P.
Roy D. Buo/Mayor
Attest: ,---
Trish L. Gleason,
Assistant City Clerk
DUBUQUE C
By: QPWW1/-
Wayne Demmer, Chairperson
Attest: 7P�.�"�
Mary Ann Specht,
Administrative Assistant
7-K
RESOLUTION NUMBER
WHEREAS, Dubuque County has been presented with a Joint Vehicle Fuel Agreement with the
City of Dubuque; and
WHEREAS,the agreement reflects a fuel cost of$0.293 per gallon higher that the City's net
purchase price through June 30,2017 and will be adjusted the first day of the fiscal year.
NOW,THEREFORE BE IT RESOLVED that the Dubuque County Board of Supervisors
approves and authorizes the Chairperson to sign the Joint Vehicle Fuel Agreement with the City
of Dubuque.
YhnQJL.
Wayne emmer, Chairperson
Dubu e County Board of Supervisors
Approved: December 12, 2016
Attest:
Llvn )g
Mary JbHhbel,Deputy County Auditor