Explanation
Background: This legislation authorizes and directs the Finance and Management 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 for the credit card fuel purchases and a universal term contract is in place with Voyager Fleet Systems, Inc. The Fleet Management Division will use the State of Ohio General Distribution Contract with BP Products North America, Inc. for bulk fuel purchases.
Fiscal Impact: The Fleet Management Division budgeted $9.0 million for fuel in 2007 at approximately $2.55/gallon. The city uses approximately 3.5 million gallons of fuel per year. Previous legislation (Ord. No. 0125-2007 and Ord. No. 0223-2007) authorized a total of $4.6 million for fuel purchases thus far in 2007. Year-to-date, the Fleet Management Division has spent approximately $3.6 million for fuel. This legislation authorizes another $4 million for credit card fuel purchases and bulk fuel purchases.
Further legislation may be necessary in the latter part of 2007 for both credit card and bulk fuel purchases depending on the increases in the cost of fuel and also to procure additional bio-diesel. The Fleet Management Division spent $8.3 million for fuel in 2006, and $7.4 million for fuel in 2005.
Emergency action is requested in order to ensure an uninterrupted supply of credit card fuel purchases and bulk fuel deliveries.
BP Products North America, Inc. Contract Compliance Number 36-2440313, expiration date 02/26/2009. Voyager Fleet Systems, Inc. Contract Compliance Number 76-0476053, expiration date 08/29/2008.
Title
To authorize and direct the Finance and Management Director to issue purchase orders for credit card fuel and bulk fuel purchases for the Fleet Management Division, to authorize the expenditure of $4,000,000.00 from the Fleet Management Services Fund; and to declare an emergency. ($4,000,000.00)
Body
WHEREAS, a Universal Term Contract (UTC) has been established through the formal competitive bid process for credit card fuel, and
WHEREAS, contracts have been established through the formal competitive bid process by the State of Ohio for bulk fuel purchases, and
WHEREAS, the Finance and Management Department, 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 Finance and Management Department, Fleet Management Division, in that it is immediately necessary to issue purchase orders for credit card and bulk fuel purchases, to ensure an uninterrupted fuel supply 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 is authorized to establish purchase orders with BP Products North America, Inc. for bulk fuel, in accordance with State of Ohio General Distribution Contract RS908906 (CT#OT914204E) which expires on 04/30/2009, and Voyager Fleet Systems, Inc. in accordance with Universal Term Contract FL001215, which expires on 08/29/2008.
SECTION 2. That the expenditure of $4,000,000.00, or so much thereof that may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2280
Amount: $2,909,897.00
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2286
Amount: $1,090,103.00
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.