SAN JUAN CAPISTRANO, CA - The City of San Juan Capistrano joined the State of California's contract for a fleet fuel card in order save on rising fuel costs, which is expected to result in up to $4,000 of savings each year. Approved by City Council in July, the new fleet card program was recently implemented, according to an update from the city manager.

According to a July agenda report from the Public Works director, the California State contract fleet card program with the US Bank Voyager Fleet Card allows for fuel purchases with no upcharge on the retail cost of fuel. The City previously used another fleet card, but due to its small fleet size (76 units consuming approximately 26,000-30,000 gallons of fuel per year), the City wasn't able to negotiate beyond basic pricing for volume-based fuel purchases (retail plus 3 percent). The City is exempt from federal taxes, but other taxes apply.

"By utilizing the volume purchasing power of the State, our City will no longer have to pay the 3 percent over retail cost and will remain exempt from federal taxes," the agenda stated.

The new fuel card can be used at almost any gas station, and "the Voyager Fleet program allows access to fleet maintenance, repair, and parts services at pre-negotiated discounted rates to help staff achieve even greater savings," according to the agenda.

The fuel budget for FY-2011/2012 is $95,000, and the estimated $3,000 to $4,000 in savings can increase as additional services and discounts from the program are utilized. There are no costs associated with the implementation except staff time, the agenda read.

"Staff has been on an interest list for a fuel consortium among interested cities for several years, however, this never came to fruition," he agenda stated.  It also stated that it was not cost effective for the City to maintain fueling sites, as had been done in the past.

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