Explanation
Background: This legislation authorizes and directs the Finance Director to issue purchase orders for credit card fuel purchases and bulk fuel deliveries for the Fleet Management Division. Formal competitive bids were taken by the Purchasing office and Universal Term Contracts are in place for each of the items.
Fiscal Impact: The Fleet Management Division originally budgeted $4.45 million for fuel in the 2004 Budget. The Fleet Management appropriations for both parts and fuel was increased previously by Finance in the amount of $975,000 ($655,000 for fuel and $320,000 for parts)by Ordinance 1549-2004, passed September 13, 2004. Through October, the Fleet Management Division spent $4.2 million for fuel. This legislation authorizes additional purchase orders for fuel in the amount of $1 million; $535,000 credit card gasoline and $465,000.00 for bulk gasoline and diesel. These funds will provide fuel purchases through January 2005.
On average, fuel prices per gallon for 2004 have been 20 percent higher than budgeted. Fleet Management spent $4.2 million on fuels in 2003 and $3.5 million in 2002. Total expenditures for fuel in 2004 are projected at approximately $5.2 million.
Emergency action is requested in order to ensure an uninterrupted purchase of credit card fuel purchases and bulk fuel deliveries.
Title
To authorize and direct the Finance Director to issue purchase orders for credit card and bulk fuels for the Fleet Management Division, to authorize and direct the expenditure of $1,000,000.00 from the Fleet Maintenance Fund, and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, Universal Term Contracts (UTC) have been established through the formal competitive bid process, and
WHEREAS, the Fleet Management Division has a need to purchase credit card and bulk fuels, and
WHEREAS, an emergency exists in the usual daily operation of the Fleet Management Division, Public Service Department, in that it is immediately necessary to issue purchase orders for credit card and bulk fuels to ensure an adequate fuel supply for the City's vehicle fleet thereby preserving the public health, peace, property, safety, and welfare, now, in which the emergency is set forth and defined in a preamble thereto therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Finance Director is hereby authorized and directed to issue purchase orders for the Public Service Department, Fleet Management Division, per the terms and conditions of Universal Term Contracts, as follows:
BP Products - County ITB# B98-56
CC# 362440313 expires 02/14/05
Gasoline
Object Level Three 2280
Contract expires - 12/31/04
BP Products - County ITB# B98-56
CC# 362440313 expires 02/14/05
Diesel Fuel
Object Level Three 2286
Contract expires 12/31/2004
US Bank Voyager - FL001215
CC# 760476053 expires 02/15/05
Credit Card gasoline
Object Level Three 2280
Contract expires - 7/31/05
Section 2. That the sum of $1,000,000.00, or so much thereof as may be necessary, is hereby authorized to be expended from the Fleet Maintenance Fund, 513, Department No. 59-05, OCA Code 591347, Object Level One 02, Object Level Three 2280 and 2286 as follows to pay the cost thereof:
Object Level Three Code Amount
2280 $735,000.00
2286 $265,000.00
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.