Explanation
Background: This legislation authorizes and directs the Finance and Management Director to issue purchase orders to purchase bulk fuels (unleaded gasoline, diesel, and bio diesel) and credit card fuel for the Fleet Management Division.
The Fleet Management Division will use the State of Ohio General Distribution Contract with BP Products North America, Inc. for bulk fuel purchases. Formal competitive bids were taken by the Purchasing Office and universal term contracts are in place for biodiesel fuel with the Circleville Oil Company and for credit card fuel with Voyager Fleet System, Inc.
This ordinance also authorizes a supplemental appropriation of $980,000 from the unappropriated balance of the Fleet Management Services Fund. The supplemental appropriation will allow the Fleet Management Division to continue to purchase fuel for use in city vehicles and equipment into January 2008.
Fiscal Impact: The Fleet Management Division budgeted $9 million for fuel in 2007 at approximately $2.55/gallon. The city uses approximately 3.6 million gallons of fuel per year. Previous legislation (Ord. No. 0125-2007, Ord. No. 0223-2007 and Ord. No. 0999-2007) authorized a total of $8.7 million for fuel purchases thus far in 2007.
Year-to-date, the Fleet Management Division has spent approximately $6.9 million for fuel. If present fuel prices continue for the remainder of 2007, the Fleet Management Division is projecting an overall seven percent increase in total fuel prices over the budgeted amount for 2007, or approximately $630,000. The remaining balance of fuel funding (approximately $350,000) will be used to procure fuel into January 2008. 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 fuel purchases. Because these fuels are used for the operation of various city vehicles, this ordinance is being submitted for consideration as an emergency measure.
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.
Circleville Oil Company Contract Compliance Number 31-4147860, expiration date 10/17/2008.
Title
To authorize a supplemental appropriation of $980,000.00 from the unappropriated balance of the Fleet Management Services Fund; to authorize and direct the Finance and Management Director to issue purchase orders for bulk fuels and credit card fuel purchases for the Fleet Management Division, to authorize the expenditure of $980,000.00 from the Fleet Management Services Fund; and to declare an emergency. ($980,000.00)
Body
WHEREAS, the Finance and Management Department, Fleet Management Division, has a need for supplemental appropriation of $980,000 from the unappropriated balance of the Fleet Management Services Fund for fuel purchases, and
WHEREAS, Universal Term Contracts (UTC) have been established through the formal competitive bid process for the purchase of bulk fuels and credit card fuels, 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 bulk fuels and credit card fuels, and
WHEREAS, because these fuels are used for the operation of various city vehicles, this ordinance is being submitted for consideration as an emergency measure; 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 bulk fuels and credit card fuels, 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 from the unappropriated monies in the Fleet Management Services Fund No. 513, 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 21, 2007, the sum of $980,000.00 is appropriated as follows:
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2280
Amount: $280,000.00
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2286
Amount: $700,000.00
SECTION 2. 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, Voyager Fleet Systems, Inc. for credit card fuel in accordance with Universal Term Contract FL001215, which expires on 08/29/2008, and with Circleville Oil Company for ultra low sulfur diesel and bio diesel, in accordance with Universal Term Contract, which expires on 08/31/2008.
SECTION 3. That the expenditure of $980,000.00, 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: $280,000.00
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2286
Amount: $700,000.00
SECTION 4. 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.