Explanation
Background: This legislation authorizes the Finance and Management Director to issue purchase orders for ultra low sulfur diesel, bio/diesel and unleaded fuel (including fuel purchased through the Voyager card) for the Fleet Management Division. Formal competitive bids for bio/diesel were received by the Purchasing Office and a Universal Term contract is in place with Central Ohio Farmers Co-Op, as authorized by Ordinance 1197-2009. A Universal Term Contract authorized by Ordinance 0009-2010 exists for fuel credit card purchases. A purchase order with Beem's BP Distribution for unleaded bulk fuel deliveries was authroized Ordinance 0180-2010, through a formal bid conducted by Franklin County.
This ordinance also waives the competitive bidding process of the Columbus City Codes, in order to allow the continued use of the Beem's BP Distribution contract bid by Franklin County. To continue uninterrupted unleaded fuel deliveries at the lowest possible price and in comparing the State of Ohio contract with Franklin County contract, Beem's Distribution Inc. provides a lower delivery price of $0.059 per gallon. The City does not have a formal cooperative purchasing agreement with Franklin County as it does with the State of Ohio Department of Administrative Services. Accordingly, the competitive bidding provisions of the City Codes must be waived in order to participate in this Franklin County contract.
Credit card fuel purchases have been established with Voyager Fleet Systems Inc. Contract compliance number 760476053. Blanket purchase order BPFUL40A expires July 31, 2011.
Fiscal Impact: The Fleet Management Division spent $3,240,709.00 for bulk bio/diesel fuel deliveries, $1,128,619.00 for unleaded bulk fuel deliveries and $3,329,152.00 for credit card services in 2009. To date in 2010, diesel expenditures and encumbrances total $2.6 million; unleaded fuel and credit card expenditures and encumbrances total $4.7 million. Total fuel encumbrances and expenditures to date therefore total $7.3 million. This ordinance will increase the amount spent and encumbered on fuel in 2010 by $1,190,423, to a yearly total of $8.49 million, in accordance with the Third Quarterly Financial Review.
Emergency action is requested to ensure an uninterrupted supply of bulk bio/diesel, bulk unleaded, and credit card purchases. The fuel is used by all City vehicles, including Police, Fire and Refuse Collection vehicles. An ordinance could not have been presented earlier, due to the need to complete the Third Quarter Financial Review.
Title
To authorize and direct the Finance and Management Director to issue purchase orders with various vendors for the provision of automobile fuel; to authorize the expenditure of $1,190,423.00 from the Fleet Management Services Fund; to waive the competitive bidding provisions of the Columbus City Codes, 1959; and to declare an emergency. ($1,190,423.00)
Body
WHEREAS, the Finance and Management Department, Fleet Management Division, has a need to purchase bio/diesel bulk fuel, unleaded bulk fuel and universal credit card purchases for use by various City department vehicles; and
WHEREAS, a Universal Term contract (UTC) has been established through the formal competitive bid process for bulk bio/diesel fuel and universal credit card purchases; and
WHEREAS, a contract has been established through the formal competitive bid process of Franklin County for bulk unleaded fuel purchases with Beem's BP Distribution Inc.; and
WHEREAS, the Fleet Management Division has a need to purchase unleaded bulk fuel and it is in the City's best interests to waive the competitive bidding requirements of the Columbus City Codes; 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 a purchase order for various fuel purchases, to ensure an uninterrupted fuel supply for City vehicles, including Police, Fire, and Refuse Collection Division vehicles, 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 hereby authorized to issue a purchase order with Central Ohio Farmers Co-op for Ultra Low Sulfur Diesel and Bio Diesel fuel , in accordance with the Universal Term Contract FL004417, which expires 02/28/2012.
Section 2. That the expenditure of $770,423.00, 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 One: 02
Object Level Three: 2286
Amount: $770,423.00
Section 3. That the Finance and Management Director is hereby authorized to issue a purchase order for unleaded fuel for the Fleet Management Division per the terms and conditions of Franklin County Distribution contract as follows:
Beem's BP Distribution Inc
CC# 341906729 expires 08/04/2011
unleaded gasoline
Object Level three: 2280
Contract expires 11/30/2011
Section 4. That the Finance and Management Director is hereby authorized to issue a purchase order with Voyager Fleet Systems Inc for Universal fuel credit card services, in accordance with the Universal Term Contract FL001215, which expires 07/31/2011.
Section 5. That the expenditure of $420,000.00, or so much thereof that may be necessary in regard to the action authorized in Sections 4 and 5, be and is hereby authorized and approved as follows:
Division: 45-05
Fund: 513
OCA Code: 451347
Object Level One: 02
Object Level Three: 2280
Amount: $420,000.00
Section 6. That the City Auditor is hereby authorized to move appropriation and expenditure authority between Sections 2 and 5 of this ordinance as necessary, understanding that the price of unleaded and bio/diesel fuel fluctuates greatly, so that the Fleet Management Division is not without necessary fuel during the interim period of the end of fiscal year 2010 and the passage of the fiscal year 2011 operating budget.
Section 7. That in accordance with the Columbus City Codes, City Council has determined it is in the best interest of the competitive bidding requirements be and are hereby are waived for the action authorized in Section 3 of this ordinance.
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, nor ten days after passage, if the Mayor neither approves nor vetoes the same.