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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