The Russellville City Board of Education's revocation of a bid awarded last month to a local fuel distributor has left that company owner questioning whether the system's current delivery method complies with fuel storage regulations.
The board solicited bids in July to provide fuel for Russellville City Schools' buses and equipment. Two bids, from Sibley Oil Company and FleetStar Fuel Company, were received. Fuel contracts are based on markup over the 'rack price,' which is the amount at which refineries sell gasoline or diesel fuel to their clients. Sibley Oil's bid was lower, so the board awarded the 2015-16 fuel contract to the Russellville-based company, operated by Jim Sibley.
FleetStar, owned by board member Greg Trapp, was awarded the bid last Thursday after board members voted 3-0 (with Trapp abstaining) to rescind Sibley's bid and give the bid to the next lowest bidder in FleetStar.
RCS superintendent Heath Grimes said Sibley's failure to comply with bid specifications led to last Thursday's action.
“The bid specs call for on-site delivery, and he did not have a method for on-site delivery,” Grimes said. “The specs said the system would be in place at the beginning of the school year. We have less than 300 gallons available today, so we needed something in place now.”
Trapp's company has provided diesel fuel to Russellville City Schools for several years. According to RCS records, FleetStar Fuel Company was paid approximately $64,000 for fuel during the 2012-13 fiscal year. That number grew to $68,200 in fiscal year 2013-14, and through 10 months of the current fiscal year FleetStar has received $42,000 from RCS as of July 31, 2015.
Grimes said Alan Wilson, RCS transportation supervisor, made repeated contacts with Sibley to make sure he would have a fuel delivery system in place as of August 13, the first day of classes.
“He reached out to Mr. Sibley as recently as August 3, and Mr. Sibley has not contacted him back. He just didn't meet the specifications as far as on-site delivery,” Grimes said.
After Thursday's meeting, Trapp said he would continue to provide a 1,200-gallon tanker truck that remains at the bus barn for refueling of buses and heavy equipment. The portable tanker has a nozzle that allows direct fueling from the truck. Trapp said he has a larger vehicle deliver fuel to the 1,200-gallon truck as needed.
When contacted last Friday by the Free Press, Sibley said he was unaware his bid had been rescinded. Sibley said he was working with Russellville fire marshal Justin Green to design a delivery method that would be compliant with local, state and federal laws regarding storage of fuels. Sibley said the existing system of a tanker truck constantly stationed at the bus barn is not legal.
“I was told by Alan that everything was going just fine, and I was just trying to work out the details in the specs,” Sibley said. “I wanted to make sure Justin Green agreed with what we were doing. I can't just park a truck down there and certainly can't deliver to it legally."
Sibley said Green told him he would look into approved methods for diesel storage, and before any tank could be installed or permanently located on school property it would have to be approved by the state building commission.
Green said he told Sibley on July 27 that his proposed plan to install a portable tank was permissible under the International Fire Code, but he would need to get state approval before installing it.
“What changed? No one told me anything or asked me any questions," Sibley said. "No person with the school system told me I was no longer doing the bid or asked any questions. I was approved, then suddenly with no explanation, disapproved. And I found out about it through the news media."
Sibley said he told Wilson he was awaiting approval from the fire marshal and/or state officials on a delivery method.
“The way they have the bid structured, unless you put a truck on-site you can't get the bid. And that's simply not legal," Sibley said. "You can't store fuel in a truck like they're doing."
Green said he had spoken with Wilson and explained that a tanker truck can't stay at the bus barn all the time, or it would be considered a fixed object.
On Monday, Green met with Wilson and advised him the tanker truck could not be placed within 50 feet of a building or within 15 feet of a property line. Green said refueling could not be done under the overhang, where the truck is located, without installation of a high-intensity sprinkler system. He said Wilson told him the truck would be left overnight inside a fence with the high school driver's education vehicles, and refueling would be done outside, which would comply with these regulations.
"[Wilson] asked if they could bring it every Wednesday for refueling,” Green said. “I'm continuing to research the fire codes on this. We don't deal with fuel issues very often, so I'm reaching out to other fire marshals who have refineries in their area to get their input.”
Green said the State of Alabama adopted the 2009 version of the International Fire Code, while the City of Russellville adopted the 2003 version, so questions exist as to which regulations dictate.
“I have to find the code section that applies. If I go by whatever the code says, which I will, then I can be fair with every person,” Green said. “I've talked with Mr. Sibley several times, and he wants to put in a tank. I told him I needed time to research that before it could be done."
Sibley said he had to wait until receiving approval from the fire marshal before he could put in a tank, and that's exactly what he was doing—waiting.
“When I talked to Alan, he said everything's fine, and we'd just wait on how they rule about the tank,” Sibley said.
Another issue, Sibley explained, could arise if or when a tank is installed at the bus barn. If the tank is furnished and paid for by Sibley Oil, then he would only allow the use of the tank if his company was the system's fuel supplier. One option would be for Russellville City Schools to pay for the installation. Sibley said there was another less expensive option, though.
“They could very easily bring the buses to refuel at Legacy Chevron [on Hwy. 43]. We are open 24 hours," Sibley said. "There is adequate room to fuel three buses at a time, and it would be a cheaper option than the current system, without the risks."
The Russellville City Board of Education operates under a Code of Conduct that requires board members “to inform the superintendent and fellow board members of business relationships or family members or close associates or private interests.”
Grimes and his predecessor, Rex Mayfield, along with the board, have been made aware of Trapp's ownership of the company since FleetStar first received the bid. Additionally, Trapp has abstained each time the fuel bid contract was approved by the board.
Another provision of the code of conduct provides that board members “refrain from using the position of school board member for personal or partisan gain or to benefit any person or entity over the interests of the school system.”
Although Trapp's company was awarded the bid in 2012-13 and 2013-14, it was based solely on FleetStar submitting the lowest markup over rack price, Grimes said.
As for this year, school officials maintain Sibley Oil failed to complete the bid requirements when an on-site delivery system wasn't in place on the first day of school.
Grimes said the decision to rescind the bid had nothing to do with FleetStar being the next lowest bidder. It came down simply to the conditions of the bid.
“We remove anything to do with relationships and look at what's best for our school system, based on the law, when making decisions,” Grimes said. “I understand there being some questions, but when you remove the relationship from this instance and look at the bid specifications, what our school system needs and what's best for the system, it's really clear the right decision was made."
