DATE: November 8, 2016
SUBJECT:
Title
RESOLUTION GRANTING INDEMNITY AND AUTHORIZING AN AGREEMENT WITH THE COUNTY OF SAN DIEGO, FLEET MANAGEMENT DIVISION, FOR AS-NEEDED COOPERATIVE AUTOMOTIVE FUEL SALES FROM JANUARY 1, 2017 THROUGH DECEMBER 31, 2022, FOR AN AMOUNT NOT TO EXCEED $950,000
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EXECUTIVE SUMMARY:
The District contracts for fuel from the County of San Diego (County) for the 66 Harbor Police (HP) and nine (9) District Administrative pool vehicles. Gasoline for these vehicles is obtained through a contract with the County for retail-station fueling. Contracting fuel through the County allows the District to reduce costs through a shared cooperative fuel sales agreement, and provides for flexibility as it allows District staff to fuel at various locations throughout San Diego county.
The District is requesting to enter into an agreement with the County to allow HP and Administrative pool vehicles to be fueled at any of its 25 fuel station sites located throughout San Diego county. Staff recommends the Board adopt a Resolution granting indemnity and authorizing an agreement with the County of San Diego, Fleet Management Division, for as-needed cooperative automotive fuel sales from January 1, 2017 through December 31, 2022, for an amount not to exceed $950,000.
RECOMMENDATION:
Recommendation
Adopt a Resolution granting indemnity and authorizing an agreement with the County of San Diego, Fleet Management Division, for as-needed cooperative automotive fuel sales from January 1, 2017 through December 31, 2022, for an amount not to exceed $950,000.
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FISCAL IMPACT:
Funds for this expenditure are included in the approved FY 16/17 budget within the General Services’ Fuel and Lubricant account. Funds required for future fiscal years will be budgeted in the appropriate fiscal year, subject to Board approval upon adoption of each fiscal year’s budget.
Compass Strategic Goals:
This agreement provides for the continuous operation of District safety and Administrative pool vehicles.
This agenda item supports the following Strategic Goal(s).
• Not applicable.
DISCUSSION:
The District’s Harbor Police (HP) department currently operates 66 gasoline-powered vehicles, and the District’s Administrative pool currently operates nine (9) gasoline-powered vehicles. The District contracts for fuel from the County of San Diego (County) for these vehicles. Contracting fuel through the County allows the District to reduce costs through a shared cooperative fuel sales agreement, and provides for flexibility as it allows District staff to fuel at various locations throughout San Diego county.
The District currently owns and operates one (1) 10,000 gallon above-ground storage tank at the General Services site, which is used to fuel General Services’ vehicles. Under this agreement, the County permits the District to acquire fuel from 25 fuel station sites at the County’s current cost per gallon, plus the annual surcharge approved by the County’s Cost Commission to cover costs of fuel management; which includes inspections, permits, automated fuel systems, access devices and other costs associated with fuel site operations.
In order to use the County’s fueling systems, the District must accept the indemnification language of the agreement. By accepting of the indemnification language, the District agrees to indemnify the County and the employees and agents of County against any and all claims, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys’ fees and court costs related to this Agreement and arising either directly or indirectly from any act, error, omission or negligence of the District or its contractors, licensees, agents, servants or employees, including, without limitation, claims caused by the sole passive negligent act or the concurrent negligent act, error or omission, whether active or passive, of the County. The District shall have no obligation, however, to defend or indemnify the County from a claim if it is determined by a court of competent jurisdiction that such claim was caused by the sole negligence or willful misconduct of the County.
District staff has reviewed the risk to the District regarding providing an indemnity to the County to allow the District’s Harbor Police and Administrative pool vehicles to continue to be fueled at any of the County’s 25 fuel station sites located throughout San Diego County, and found the risk to be low.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the issues set forth in this agenda and found no legal concerns as presented. The indemnity language requires the District to indemnify the County against actions arising from the agreement and the District’s own actions except for the sole negligence or willful misconduct of the County. The Office of the General Counsel has reviewed and approved the agreement as to form and legality.
Environmental Review:
The proposed Board action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed Board action allows for the District to implement its obligations under the Port Act and/or other laws. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, the proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Sharalynne Nichols
Acting Business Manager, General Services
Attachment A: County of San Diego Fuel Agreement