Explanation
BACKGROUND: This legislation is for the option to establish two (2) UTC contracts for Unleaded and E-85 Fuel for the Division of Fleet, the primary user, and for use in various equipment and vehicles throughout City of Columbus Departments and Divisions. This contract will provide for the purchase of Unleaded and E-85 Ethanol fuels for delivery at various City of Columbus fuel station locations and departmental holding tanks as well as potential regional cooperative partners. The term of the proposed option contracts would be approximately two years, expiring March 31, 2018, with the option to renew for one (1) additional year. The Purchasing Office opened formal bids on January 14, 2016.
The Purchasing Office advertised and solicited competitive bids in accordance with the relevant provisions of Section 329.06 relating to competitive bidding (Solicitation No. SA006154). Thirty-two (32) bids were solicited: (M1A-0, F1-0, MBR-1). Seven (7) bids were received (MBR-1).
Items 1 and 2 are Unleaded Fuel with different size deliveries and Item 3 is E-85 Ethanol. Items 4 and 5 are charges relating to deliveries (wait charge and refused delivery charge). The Purchasing Office is recommending award to the overall lowest, responsive, responsible and best bidders as follows:
Great Lakes Petroleum Co., CC# 34-1850508 expires 2/22/2018, Items 1, 2, 4 and 5, $1.00
Benchmark Biodiesel, Inc., CC# 26-1274251 expires 11/23/2017, Items 3, 4 and 5, $1.00
Total Estimated Annual Expenditure: $1 million, Division of Fleet, the primary user
The companies are not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search. This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is from the General Fund. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to enter into two (2) contracts for the option to purchase Unleaded and E-85 Fuel with Great Lakes Petroleum, Co. and Benchmark Biodiesel, Inc.; to authorize the expenditure of $2.00 to establish the contracts from the General Fund; and to declare an emergency. ($2.00).
Body
WHEREAS, the Unleaded and E-85 Fuel UTC will provide for the purchase of unleaded and E-85 Ethanol fuels to be delivered to various City of Columbus fueling sites and tank storage facilities for use in various vehicles and equipment throughout the City of Columbus Departments and Divisions; and,
WHEREAS, the Purchasing Office advertised and solicited formal bids on January 14, 2016 and selected the overall lowest, responsive, responsible and best bidders; and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, as the current contract expires March 31, 2016 and in order to maintain a supply of Unleaded and E-85 Fuels, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management, Purchasing Office, in that it is immediately necessary to authorize the Director to enter into two (2) contracts for the option to purchase Unleaded Fuel and E-85, 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 be and is hereby authorized to enter into the following contracts for the option to purchase Unleaded and E-85 Fuel in accordance with Solicitation No. SA006154 for a term of approximately two years, expiring March 31, 2018, with the option to renew for one (1) additional year, as follows:
Great Lakes Petroleum Co., Items 1, 2, 4 and 5, $1.00
Benchmark Biodiesel, Inc., Items 3, 4 and 5, $1.00
SECTION 2. That the expenditure of $2.00 is hereby authorized in Fund 1000 General Fund in Object Class 02 Materials and Supplies per the account codes in the attachment of this ordinance to pay the cost thereof.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That for the reason 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.