Explanation
Background: This legislation authorizes the Finance and Management Director to issue purchase orders to purchase bulk fuels (unleaded gasoline, 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 biodiesel fuel with the Circleville Oil Company and for credit card fuel with Voyager Fleet System, Inc.
This ordinance also authorizes a supplemental appropriation of $1,100,000 from the unappropriated balance of the Fleet Management Services Fund. The supplemental appropriation will allow the Fleet Management Division to continue to purchase fuel for use in city vehicles and equipment until the passage of the 2008 operating budget.
Fiscal Impact: The Fleet Management Division budgeted $9 million for fuel in 2007 at approximately $2.55/gallon. The city uses approximately 3.6 million gallons of fuel per year. Previous legislation (Ord. No. 0125-2007, Ord. No. 0223-2007, 1011-2007 and Ord. No. 0999-2007) authorized a total of $10 million for fuel purchases thus far in 2007.
Year-to-date, the Fleet Management Division has spent approximately $8.9 million for fuel. At the present price of fuel, the Fleet Management Division will exhaust appropriation to procure fuel at the end of 2007. Therefore, this appropriation increase is necessary to procure fuel until passage of the 2008 operating budget. The Fleet Management Division spent $8.3 million for fuel in 2006, and $7.4 million for fuel in 2005.
Emergency action is requested in order to ensure an uninterrupted supply of fuel purchases. Because these fuels are used for the operation of various city vehicles, this ordinance is being submitted for consideration as an emergency measure.
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