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CITY COUNCIL MEETING DATE: MARCH 7, 2017 TITLE: CONTRACT AWARD TO SVM, LP FOR PREPAID GAS CARDS (SPEC. NO. 16 -103) (STRATEGIC PLAN NO. 7,6) CLERK OF COUNCIL USE ONLY: =--;• r, ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2 "d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to SVM, LP for the purchase of prepaid gas cards for a one -year period expiring March 31, 2018, with the provision for three one -year renewal options exercisable by the City Manager, in the annual amount not to exceed $33,000, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The Community Development Agency (CDA) Santa Ana WORK Center manages several programs including the Workforce Innovation and Opportunities Act (WIOA). Participants in the program are offered supportive services as defined by WIOA including gas vouchers and OCTA monthly bus passes to facilitate their ability to find and retain employment. The prepaid fuel -only card program allows clients to purchase competitively priced gas at their local neighborhood gasoline stations. Gas cards are issued to clients following a program guideline screening by an authorized WORK Center case manager and a demonstrated financial need has been identified. The gas cards are managed to assure that the program maintains fiscal integrity and adherence to audit controls. Each gas card is tracked by its individual serial number and records are reconciled monthly. Gas card logs are archived and made available for inspection by the State of California auditors annual review of records. The WORK Center issues an average of 26 gas cards per month. In addition to the WORK Center, the Personnel Services Agency purchases prepaid gas cards as employee incentives for the Commuter Services Program. A notice inviting bids was advertised on August 24, 2016, on the City's online bid management and publication system. Preliminary research conducted by staff showed that there are few vendors that offer a variety of prepaid gas cards. As the deadline approached and no bids had been received, staff extended the bid solicitation deadline twice, and reached out to potential vendors in an effort to provide them additional opportunities to submit a bid. On September 30, 2016, the bid solicitation closed without any bids received. Due to the lack of vendor participation, the Community Development Agency staff conducted research and found only three prepaid gas card vendors in California: RPG, Valero and SVM, LP. These vendors sell gas cards for various brands of gasoline stations including Shell Oil, Exxon 22A -1