Explanation
This legislation will enable 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 OP914204. 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, 2006, the funding on this ordinance is for expenses that will occur in the coming winter months. The City of Columbus does not currently have a universal term contract for heating oil. 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 naturally created methane. With the increase in fuel pricing and volatility of the market, money being established on this ordinance covers the estimated expenses for the winter November 2005 through March 2006. Current pricing at the time this legislation is being processed was $1.8590/gallon for #2 Heating Oil
SUPPLIER: BP Products North America Incorporated (36-2440313)
FISCAL IMPACT: $390,000.00 is required. Legislation transferring appropriation within the fund to provide funding for this purchase of heating oil has been submitted to City Council.
$350,000.00 was spent in 2004
$280,000.00 was spent in 2003
Emergency legislation is being requested so that heating the buildings at the wastewater treatment plants can continue without interruption.
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, to authorize the expenditure of $390,000.00 from the Sewerage System Operating Fund, and to declare an emergency ($390,000.00)
Body
WHEREAS, a Cooperative Purchasing Contract has been established with BP Products North America Inc, by the State of Ohio, GDC027E, Contract Number OP914204 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, 2006; and,
WHEREAS, the Division of Sewerage and Drainage wishes to establish blanket purchase orders to heat buildings at the Southerly Wastewater Treatment Plant; and Jackson Pike Wastewater Treatment Plant and,
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Sewerage and Drainage in that it is immediately necessary to establish blanket purchase orders for Heating Oil with BP Products of North America so that heating the buildings at the wastewater treatment plants can continue without interruption for the immediate preservation of the public health, peace, property and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Finance 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 $390,000.00 or so much thereof as may be needed, be and the same hereby is authorized from the Sewerage System Operating Fund, Fund No. 650,
Jackson Pike Wastewater Treatment Plant
OCA: 605022
Object Level 1: 02
Object Level 3: 2278
Amount: $30,000.00
Southerly Wastewater Treatment Plant
OCA 605055
Object Level 1: 02
Object Level 3: 2278.
Amount: $360,000.00
TOTAL: $390,000.00
Section 3. That for the reasons stated in the preamble hereto, where is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, which 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.