Explanation
Background: This legislation authorizes and directs the Finance Director to issue purchase orders for credit card fuel purchases and bulk fuel deliveries for the Fleet Management Division. Formal competitive bids were taken by the Purchasing office and Universal Term Contracts are in place for each of the items.
Fiscal Impact: The Fleet Management Division originally budgeted $4.45 million for fuel in the 2004 Budget. The Fleet Management appropriations for both parts and fuel was increased previously by Finance in the amount of $975,000 ($655,000 for fuel and $320,000 for parts)by Ordinance 1549-2004, passed September 13, 2004. Through October, the Fleet Management Division spent $4.2 million for fuel. This legislation authorizes additional purchase orders for fuel in the amount of $1 million; $535,000 credit card gasoline and $465,000.00 for bulk gasoline and diesel. These funds will provide fuel purchases through January 2005.
On average, fuel prices per gallon for 2004 have been 20 percent higher than budgeted. Fleet Management spent $4.2 million on fuels in 2003 and $3.5 million in 2002. Total expenditures for fuel in 2004 are projected at approximately $5.2 million.
Emergency action is requested in order to ensure an uninterrupted purchase of credit card fuel purchases and bulk fuel deliveries.
Title
To authorize and direct the Finance Director to issue purchase orders for credit card and bulk fuels for the Fleet Management Division, to authorize and direct the expenditure of $1,000,000.00 from the Fleet Maintenance Fund, and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, Universal Term Contracts (UTC) have been established through the formal competitive bid process, and
WHEREAS, the Fleet Management Division has a need to purchase credit card and bulk fuels, and
WHEREAS, an emergency exists in the usual daily operation of the Fleet Management Division, Public Service Department, i...
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