Explanation
Background: This legislation authorizes and directs the Finance and Management 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 a universal term contract is in place for the credit card fuel purchases. The Fleet Management Division will use the State of Ohio and Franklin County universal term contracts with BP Products and Earhart Petroleum Incorporated respectively, for bulk fuel purchases. The state contract expires April 30, 2006.
Fiscal Impact: The Fleet Management Division budgeted $9 million for fuel in 2006 or approximately $2.55/gallon. This legislation authorizes $3 million for credit card fuel purchases and $1.5 million for bulk fuel purchases through the end date of the state contract. The remaining bulk fuel purchases will require legislation for the period after April 30, 2006. The credit card fuel purchase contract may be renewed through July 2008.
It is conceivable, depending upon fuel price fluctuations, that further legislation may be necessary in the latter part of 2006 for both credit card and bulk fuel purchases. The Fleet Management Division spent $7.7 million for fuel in 2005, $5.2 million in 2004 and nearly $4.7 million for fuels in 2003.
Emergency action is requested in order to ensure an uninterrupted supply of credit card fuel purchases and bulk fuel deliveries.
Title
To authorize and direct the Finance and Management Director to issue purchase orders for credit card fuel and bulk fuel purchases for the Fleet Management Division, to authorize the expenditure of $4,500,000.00 from the Fleet Management Services Fund, and to declare an emergency. ($4,500,000.00)
Body
WHEREAS, Universal Term Contracts (UTC) have been established through the formal competitive bid process for credit card fuel, and
WHEREAS, contracts have been established through the forma...
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