City of Columbus - File #: 1436-2005

• File #: 1436-2005
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 8/22/2005
• In control: Public Service & Transportation Committee
• On agenda: 10/3/2005
• Final action: 10/3/2005
• Title: To authorize the Finance Director to issue purchase orders for the purchase of credit card and bulk fuel for the Fleet Management Division; to authorize the expenditure of $1,430,000.00 from the Fleet Management Services Fund, and to declare an emergency. ($1,430,000.00)

Date	Ver.	Action By	Action	Result
10/6/2005	1	ACTING CITY CLERK	Attest
10/5/2005	1	MAYOR	Signed
10/3/2005	1	Columbus City Council	Approved	Pass
10/3/2005	1	COUNCIL PRESIDENT	Signed
9/22/2005	1	CITY AUDITOR	Reviewed and Approved
9/22/2005	1	CITY AUDITOR	Reviewed and Approved
9/22/2005	1	Finance Reviewer	Reviewed and Approved
9/22/2005	1	SERVICE DIRECTOR	Reviewed and Approved
9/22/2005	1	CITY ATTORNEY	Reviewed and Approved
9/22/2005	1	SERVICE DIRECTOR	Sent to Clerk's Office for Council
9/20/2005	1	FINANCE DIRECTOR	Reviewed and Approved
9/20/2005	1	SERVICE DIRECTOR	Reviewed and Approved
9/16/2005	1	Service Drafter	Sent for Approval
9/16/2005	1	SERVICE DIRECTOR	Reviewed and Approved
9/16/2005	1	Service Drafter	Sent for Approval
9/16/2005	1	Finance Reviewer	Reviewed and Approved
9/1/2005	1	Service Drafter	Sent for Approval
8/22/2005	1	Service Drafter	Sent for Approval

Explanation
Background: This legislation authorizes the Finance Director to issue purchase orders for the purchase of credit card fuel and bulk fuel (gasoline and diesel fuel). Formal competitive bids were solicited by the Purchasing Office and contracts are in place for these commodities.

Fiscal Impact: The Fleet Management Division budgeted a total of $5.56 million for the purchase of motor fuels in 2005. Ordinance # 0056-2005 passed February 9, 2005, authorized $4.1 million for fuel purchases and Ordinance # 0791-2005 passed April 20, 2005, authorized an additional $1.44 million.

As of the 2005 Second Quarter Financial Review, the Fleet Management Division projected a fuel deficit of $1.4 million, at an average cost of $1.97 per gallon. Since the mid-year financial review, however, the division has witnessed dramatic increases in fuel prices. As of August 29, the average fuel cost was $2.30 per gallon (for all grades of fuel). As of September 1, 2005, fuel prices rose sharply to an average cost of $2.80 per gallon. The latest price increases are due directly to the damage caused to oil production, pipeline, supply facilities and refineries by hurricane Katrina. The Fleet Management Division projects fuel prices to remain high through September (close to the current $2.80/gallon) and then level off at approximately $2.50/gallon for the remainder of 2005. These fuel price increases will require the city to expend an additional $800,000 for fuel before year-end, escalating the combined fuel deficit to $2.23 million. Total fuel expenditures for 2005 will be approximately $7.79 million.

This ordinance authorizes an expenditure of $1.43 million. After the 2005 Third Quarter Financial review, the Fleet Management Division and Finance will re-evaluate fuel prices through the remainder of 2005 and present another fuel expenditure ordinance to Council for approval.

The city spent $5.2 million for fuel in 2004 and nearly $4.7 million for...