Explanation
The purpose of this legislation is to authorize the Director of Finance and Management to establish purchase orders for the Division of Sewerage and Drainage to obtain Heating Oil in accordance with a cooperative purchasing contract bid by the State of Ohio, GDC027E, Contract Number RS908906-1
This contract was bid specifically to be a cooperative contract for use by other governmental agencies in accordance with Chapter 1545 of the Ohio Revised Code (ORC). The State of Ohio contract expires April 30, 2009, the funding on this ordinance is for expenses that will occur in the winter months of 2008-2009. Currently the City of Columbus does not have a contract for this product. Ordinance 582-87 authorizes the City of Columbus to participate in cooperative purchasing contracts and as a member of the Central Ohio Organization of Public Purchasers (CO-OPP), the City of Columbus is authorized to purchase from this contract.
The Division of Sewerage and Drainage, Southerly Wastewater Treatment Plant and Jackson Pike Wastewater Treatment Plant require Heating Oil for boilers that heat the buildings throughout the plants. The Jackson Pike Wastewater Treatment Plant offsets some of the cost of heating by using methane created as a byproduct of the wastewater treatment processes. Current price for heating oil from the State of Ohio contract at the time of this ordinance is $3.2841/gallon which is approximately a 33% increase in price from this time in 2007.
SUPPLIER: BP Products North America Incorporated (36-2440313), Expires 2-26-09
FISCAL IMPACT: $625,000.00 is required for this purchase and is budgeted in the division operating fund.
$658,020.00 was spent in 2008 winter months
$619,336.00 was spent in 2007 winter months
$539,732.00 was spent in 2006 winter months
Title
To authorize the Director of Finance to establish Blanket Purchase Orders for Heating Oil from an established State of Ohio Cooperative Purchase Contract with BP Products North America Inc. for the Division of Sewerage and Drainage and to authorize the expenditure of $625,000.00 from the Sewerage System Operating Fund ($625,000.00)
Body
WHEREAS, a Cooperative Purchasing Contract has been established with BP Products North America Inc, by the State of Ohio, GDC027E, Contract Number RS908906-1 for use by the County and other governmental entities that are members of the Central Ohio Organization of Public Purchasers (CO-OPP) for the option to purchase Heating Oil through April 30, 2009; and,
WHEREAS, the funding for this purchase will be for heating oil to be used during
WHEREAS, the Division of Sewerage and Drainage wishes to establish blanket purchase order to heat buildings at the Southerly Wastewater Treatment Plant; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Finance and Management be and is hereby authorized to establish blanket purchase orders for the purchase of Heating Oil from a State of Ohio Cooperative Contract with BP Products North America Inc, for use by the Division of Sewerage and Drainage.
Section 2. That the expenditure of $625,000.00 or so much thereof as may be needed, be and the same hereby is authorized from the Sewerage System Operating Fund, Fund No. 650,
Southerly Wastewater Treatment Plant
OCA 605055
Object Level 1: 02
Object Level 3: 2278.
Amount: $540,000.00
Jackson Pike Wastewater Treatment Plant
OCA 605022
Object Level 1: 02
Object Level 3: 2278.
Amount: $85,000.00
TOTAL: $625,000.00
Section 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law