City of Columbus - File #: 1419-2008

• File #: 1419-2008
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 8/29/2008
• In control: Finance & Economic Development Committee
• On agenda: 9/22/2008
• Final action: 9/25/2008
• 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)

Date	Ver.	Action By	Action	Result
9/25/2008	1	CITY CLERK	Attest
9/23/2008	1	MAYOR	Signed
9/22/2008	1	Columbus City Council	Approved	Pass
9/22/2008	1	COUNCIL PRESIDENT	Signed
9/12/2008	1	Auditor Reviewer	Reviewed and Approved
9/12/2008	1	CITY AUDITOR	Reviewed and Approved
9/12/2008	1	Finance Drafter	Sent for Approval
9/12/2008	1	Finance Drafter	Sent for Approval
9/12/2008	1	Finance Drafter	Sent for Approval
9/12/2008	1	CITY ATTORNEY	Reviewed and Approved
9/12/2008	1	Finance Drafter	Sent to Clerk's Office for Council
9/9/2008	1	Finance Drafter	Sent for Approval
9/8/2008	1	Finance Drafter	Sent for Approval
9/8/2008	1	Finance Reviewer	Reviewed and Approved
9/2/2008	1	Finance Reviewer	Reviewed and Approved
9/2/2008	1	FINANCE DIRECTOR	Reviewed and Approved
9/2/2008	1	Finance Reviewer	Reviewed and Approved
9/2/2008	1	Finance - Purchasing Reviewer	Reviewed and Approved
9/2/2008	1	Finance Drafter	Sent for Approval
8/29/2008	1	Finance Drafter	Sent for Approval
8/29/2008	1	Finance Drafter	Sent for Approval

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 purc...