Explanation
Background: This ordinance authorizes a transfer of $173,124 within the Fleet Management Services Fund for the Fleet Management Division. The Third Quarter Financial Review projected a personnel surplus within the Feet Management Services Fund. These funds are being transferred within the 2005 operating budget to pay for fuel and parts. There is also a small transfer within the Public Service Director's office Fleet Management Services Fund to cover technology related charges.
This ordinance also authorizes a supplemental appropriation of $631,449 from the unappropriated balance of the Fleet Management Services Fund. The transfer and supplemental appropriation will allow the Fleet Management Division to continue to purchase fuel and parts for snow plow and refuse collection equipment as well as pay vehicle damage claims for the Fleet Management Division.
This ordinance also authorizes the Finance and Management Director to issue purchase orders for the purchase of credit card and bulk fuel (gasoline and diesel fuel) for the Fleet Management Division per terms and conditions of State Contract OP914204 and Franklin County Contract ITB # 2005-02-51.
Fiscal Impact: The Fleet Management Division originally budgeted a total of $5.56 million for the purchase of motor fuels in 2005. Ordinance # 0056-2005 passed February 9, 2005, authorized $4.1 million for fuel purchases, Ordinance # 0791-2005 passed April 20, 2005, authorized $1.44 million and Ordinance # 1436-2005, passed October 3, 2005 authorized an additional $1.43 million for a total of $6.97 million for motor fuel purchases in 2005.
As of the 2005 Third Quarter Financial Review, the Fleet Management Division projected a fuel deficit of $800,000, at an average cost of $2.50 per gallon. Since then, however, the division has witnessed a decrease in fuel prices. On November 14, 2005, fuel prices were at an average cost of $2.12 per gallon, allowing for a revision of the fuel deficit to level off at $665,000 for the remainder of 2005. Therefore the combined fuel deficit in 2005 is $2.1 million. Total fuel expenditures for 2005 will be approximately $7.65 million. This ordinance authorizes an expenditure of $665,000.
The city spent $5.2 million for fuel in 2004 and nearly $4.7 million for fuel in 2003. The Fleet Management Division recovers its expenditures by billing user agencies for labor, parts, and fuel. The impact of higher fuel prices is borne by user agencies.
Approximately $108,000 of the total supplemental appropriation within the Fleet Management Services fund will be used to purchase additional parts for snow plow and refuse collection vehicles. The Fleet Management Division also has four pending accident claims that total $30,000. The City Attorney's office has already reached settlement agreements with the injured parties. Approximately $27,000 of the supplemental appropriation within the Fleet Management Services Fund will be used to meet these claim obligations.
Emergency action: This ordinance is submitted as an emergency so as to allow the financial transaction to be posted to the City's accounting system as soon as possible. In addition, emergency action will also help ensure parts are available as needed for winter operations and claims can be processed in an expeditious manner.
Title
To authorize a transfer of $173,124 within the Fleet Management Services Fund; to authorize a supplemental appropriation of $631,449 from the unappropriated balance of the Fleet Management Services Fund; to authorize the Finance and Management Director to issue purchase orders for the purchase of credit card and bulk fuel for the Fleet Management Division per the terms of Universal Term Contracts; to authorize the expenditure of $665,000 from the Fleet Management Services Fund; and to declare an emergency. ($665,000.00)
Body
WHEREAS, the Fleet Management Division, Public Service Department, requires budget authority for vehicle parts, fuel expenses and vehicle damage claims; and
WHEREAS, a transfer of funds wihin the Fleet Management Services Fund is required in order to provide for projected fuel expenses; and to provide for the Service Director's Office's projected DOT expenses; and
WHEREAS, the Fleet Management Division, Public Service Department has a need to purchase credit card and bulk fuel; and
WHEREAS, Universal Term Contracts (UTC) have been established through the formal competitive bid process; 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 establish purchase orders for the purchase of credit card and bulk fuel so as not to jeopardize or interrupt the provision of vital city services, thereby preserving the public health, peace, property, safety, and welfare, now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and hereby is authorized 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 - State GDC027E / CT#OT914204E
CC# 362440313 expires 12/15/07
Gasoline
Object Level Three 2280
Contract expires - 4/30/06
BP Products - State GDC027E / CT#OT914204E
CC# 362440313 expires 12/15/07
Diesel Fuel
Object Level Three 2286
Contract expires 4/30/06
Earhart Petroleum Incorporated - County ITB 2005-02-51
CC# 311007351 expires 4/6/08
Gasoline
Object Level Three 2280
Contract expires 8/31/07
Earhart Petroleum Incorporated - County ITB 2005-02-51
CC# 311007351 expires 4/6/08
Diesel Fuel
Object Level Three 2286
Contract expires 8/31/07
US Bank Voyager - FL001215
CC# 760476053 expires 04/15/07
Credit Card gasoline
Object Level Three 2280
Contract expires - 7/31/08
SECTION 2. That the City Auditor is hereby authorized and directed to transfer funds within the Fleet Management Services Fund as follows:
FROM:
Dept/Div: 59-05 | Fund 513 | Object Level 3: 1173 | OCA: 591263 | Amount $100,000
Dept/Div: 59-05 | Fund 513 | Object Level 3: 1173 | OCA: 591248 | Amount $68,551
Dept/Div: 59-01 | Fund 513 | Object Level 3: 1173 | OCA: 590178 | Amount $4,573
TO:
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2280 | OCA: 591347 | Amount $168,551
Dept/Div: 59-01 | Fund 513 | Object Level 3: 3334 | OCA: 590178 | Amount $4,573
SECTION 3. That from unappropriated monies in the Fleet Management Services Fund, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2005 the sum of $631,449 be and is hereby appropriated to the Fleet Management Services Fund, Fund 513, Department of Public Service, Fleet Management Division, Division No. 59-05, as follows:
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2280 | OCA: 591347 | Amount: $136,449
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2284 | OCA: 591347 | Amount: $108,000
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2286 | OCA: 591347 | Amount: $360,000
Dept/Div: 59-05 | Fund 513 | Object Level 3: 5332 | OCA: 591206 | Amount: $27,000
SECTION 4. That the sum of $665,000, or so much thereof as may be necessary, be and hereby is authorized to be expended from the Fleet Management Fund, Fund 513, Department No. 59-05, OCA Code 591347, Object Level One Code 02 as follows to pay the cost thereof:
Object Level Three Code Amount
2280 $ 305,000
2286 $ 360,000
SECTION 5. That said monies shall be paid upon order of the Department of Public Service, and no other order shall be drawn of money paid except by voucher, in the form of which shall be approved by the City Auditor.
SECTION 6. 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.