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!CASASRUS COUN1~] <br /> <br />MEMORANDUM <br /> <br />To: Frank W. Clifton, Jr. <br />From: Blair Bennett ~ <br /> <br />Date: <br /> <br />November 4, 1996 <br /> <br />Subject: <br /> <br />Fuel Management Program <br /> <br />Acting on an inquiry made by John Page, General Services Director, regarding our procurement <br />of fuel and management of that inventory, discussions were initiated to look at a proposal for an <br />alternative method for managing and accounting for fuel purchases. Sherri Bamhardt, Purchasing <br />Agent, contacted Don Isley with Propst Bros. Distributors to hold discussions about a program <br />offered by Exxon, since they currently have the contract to provide fuel to Cabarms County. <br />Also a meeting was held with Bill Bobo, Exxon Corporation, who made a preliminary <br />presentation explaining the fuel card program they offer. The Exxon Fleet Card offers a rebate of <br />3.0% of our total monthly purchases. The rebate is calculated on the retail price before deducting <br />the .1830 cents per gallon federal excise tax of which we are exempt from paying. In addition to <br />the Exxon discount, Propst Bros. will match the discount from Exxon on a monthly basis with an <br />additional 3%. See the attached letter from Don Isley stating their discount offer and proposal of <br />facilities available. <br /> <br />Some of the benefits realized from implementing a fuel card program would be: <br /> Elimination of fuel inventories <br /> Elimination of need for compliance with EPA regulations for in-ground storage <br /> Increased number of locations to be utilized for fueling - currently 5, 24 hour facilities <br /> Savings of approximately $8,100.00 <br /> <br />Using 168,000 gallons, the approximate amount of fuel used annually by County vehicles, this <br />new service would increase our annual gasoline cost by $2,604 or approximately .0155 per <br />gallon. However, adjusting this by the expenses related to EPA monitoring and maintaining the <br />current system, the County would save approximately $8,100. Attached is a memo from General <br />Services outlining the typical annual expenditure for monitoring and managing the current fuel <br />program. <br /> <br />Considering the factors of attractive pricing, network of fuel stations, elimination of EPA <br />monitoring and general services maintenance of inventory; I believe this proposal deserves <br />serious consideration by Cabarrus County. Please review this package of information and advise <br />me how you would like I~.I~I:Q.~.~ ................................................................................. <br /> <br /> <br />