Explanation
Background: Fuel prices have risen dramatically since the 2008 budget was formulated and adopted. The cost of all fuel types (unleaded and diesel) and contracts (bulk and retail) has risen from the budgeted blended rate of $2.55 per gallon to a blended price of $3.53 as of the end of July. At times fuel prices have gone above $4.00 per gallon. The price of diesel generally tracks .40 to .50 cents higher than unleaded, and has averaged $3.71 per gallon this year. Accordingly the costs to operate large equipment like Refuse, Fire, Transportation, Sewer, and Power and Water vehicles has greatly exceeded budgeted amounts.
This legislation authorizes the Finance and Management Director to issue purchase orders to purchase bulk fuels (unleaded gasoline, E85, 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 bio-diesel fuel with the Circleville Oil Company and for credit card fuel with Voyager Fleet System, Inc.
This ordinance also authorizes a supplemental appropriation of $5,317,338 from unallocated balance of the Fleet Management Services Fund. Nearly all of this appropriation ($5,286,683.00) will be used to allow the Fleet Management Division to continue to purchase fuel for use in city vehicles and equipment until the 2009 operating budget is adopted, and $30,655.00 will fund environmental remediation at its former Short Street Facility.
Fiscal Impact: The Fleet Management Division budgeted $9,031,090.00 for fuel in 2008 at an average of $2.55/gallon. The city uses approximately 3.6 million gallons of diesel and unleaded fuel per year. Two earlier ordinances (0098-2008 and 0884-2008) authorized the entire budget of $9,031,090 million for fuel purchases this year. This legislation appropriates the difference between what was authorized and what is required until the 2009 operating budget is adopted.
At the present price of fuel, the Fleet Management Division will exhaust current appropriations for fuel purchases by the end of September 2008. Therefore, this appropriation increase is necessary to authorize the total expenditure of up to $14,317,773 to purchase fuel for the remainder of this year, and to include authority to also purchase fuel until the 2009 operating budget is adopted. The Fleet Management Division spent $8.3 million and consumed 3.6 million gallons in 2006, and $10.5 million and consumed 3.6 million gallons in 2007.
Emergency action is requested to ensure an uninterrupted supply of fuel. Nearly 92 percent -of overall fuel use is for basic services provided by the Police, Fire, Refuse, Transportation, Power and Water, and Sewer Divisions.
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 07/10/2010.
Circleville Oil Company Contract Compliance Number 31-4147860, expiration date 10/17/2008.
Franklin County Dept Fleet Management Contract Compliance 31-6400067, expiration date EXEMPT.
Title
To authorize a supplemental appropriation of $5,317,338.00 from the unappropriated balance of the Fleet Management Services Fund; to authorize a supplemental appropriation of $5,317,338.00 from the unappropriated balances of the General Fund, Street Construction Maintenance Fund, Development Services, Electricity, and the Water Operating 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 $5,286,683.00 from the Fleet Management Services Fund; and to declare an emergency. ($5,317,338.00)
Body
WHEREAS, the Finance and Management Department, Fleet Management Division, has a need for supplemental appropriation of $5,317,338.00 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 also 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, the Finance and Management Department, Fleet Management Division, also needs to fund environmental remediation at its former Short Street Facility; 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 31, 2008, the sum of $5,317,338.00 is appropriated as follows:
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2280
Amount: $2,664,037.00
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2286
Amount: $2,622,646.00
Division: 45-05
Fund: 513
OCA: 451206
OL1: 03
OL3: 3336
Amount: $30,655.00
SECTION 2. That from the unappropriated monies in the General Fund, No. 010, 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, 2008, the sum of $3,762,618.00 is appropriated as follows:
Division: 22-02
Fund: 010
OCA Code: 220202
Object Level 1: 03
Object Level 3: 3380
Amount: $3,617.00
Division: 25-01
Fund: 010
OCA Code: 250177
Object Level 1: 03
Object Level 3: 3380
Amount: $315.00
Division: 30-03
Fund: 010
OCA Code: 301580
Object Level 1: 03
Object Level 3: 3380
Amount: $991,118.00
Division: 30-04
Fund: 010
OCA Code: 301531
Object Level 1: 03
Object Level 3: 3380
Amount: $1,788,984.00
Division: 44-01
Fund: 010
OCA Code: 440307
Object Level 1: 03
Object Level 3: 3380
Amount: $5,298.00
Division: 44-05
Fund: 010
OCA Code: 440328
Object Level 1: 03
Object Level 3: 3380
Amount: $40,836.00
Division: 44-06
Fund: 010
OCA Code: 440334
Object Level 1: 03
Object Level 3: 3380
Amount: $591.00
Division: 45-07
Fund: 010
OCA Code: 450039
Object Level 1: 03
Object Level 3: 3380
Amount: $11,093.00
Division: 59-02
Fund: 010
OCA Code: 591602
Object Level 1: 03
Object Level 3: 3380
Amount: $904,929.00
Division: 59-06
Fund: 010
OCA Code: 590644
Object Level 1: 03
Object Level 3: 3380
Amount: $15,837.00
SECTION 3. That from the unappropriated monies in the Street Construction Maintenance Fund, No. 265, 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, 2008, the sum of $1,378,888.00 is appropriated as follows:
Division: 59-09
Fund: 265
OCA Code: 599139
Object Level 1: 03
Object Level 3: 3380
Amount: $1,378,888.00
SECTION 4. That from the unappropriated monies in the Development Services Fund, No. 240, 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, 2008, the sum of $38,314.00 is appropriated as follows:
Division: 59-09
Fund: 240
OCA Code: 599071
Object Level 1: 03
Object Level 3: 3380
Amount: $38,314.00
SECTION 5. That from the unappropriated monies in the Public Utilities Electric Fund, No. 550, 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, 2008, the sum of $137,518.00 is appropriated as follows:
Division: 60-07
Fund: 550
OCA Code: 606723
Object Level 1: 03
Object Level 3: 3380
Amount: $137,518.00
SECTION 6. 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 07/31/2011, Franklin County Fleet Management for E85, in accordance with Franklin County E85 contract 65-07, which expires on 12/31/2009, and with Circleville Oil Company for ultra low sulfur diesel and bio diesel, in accordance with Universal Term Contract FL003604, which expires on 08/31/2009.
SECTION 7. That the expenditure of $5,286,683.00, 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: $2,664,037.00
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level 1: 02
Object Level 3: 2286
Amount: $2,622,646.00
SECTION 8. 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.