Explanation
BACKGROUND: This legislation authorizes the Director of Finance and Management to modify an existing Universal Term Contract for the option to purchase Retail Fleet Fuel Credit Card Services for various City agencies. This contract provides authorized City of Columbus employees the ability to refuel City vehicles at designated petroleum dealers within Ohio, as managed by the Fleet Management Division. The current vendor, MPC Investments LLC dba Speedway LLC, is transitioning the management of its’ fuel card program to a third party. Under the terms of the existing contract fuel cards are accepted at Speedway, Marathon, and Pilot stations, and also allow for the purchase of car washes. The existing contract also provides for a fuel discount at Speedway, based on $0.03 markup over daily OPIS pricing. Additionally, the current contract provides a $0.05 fuel discount from retail pricing at Marathon and Pilot stations. In addition, MPC Investments LLC dba Speedway LLC, has changed their Federal Identification number and this ordinance authorizes the assignment of all past, present and future business done by the City of Columbus from 27-1287018 to 31-1551430.
The revised fuel card program will limit the discount to only Speedway stations, but will expand the fuel station network. City agencies will be encouraged to fuel at Speedway locations whenever possible to realize the fuel discount. However, expanding the fuel station network will be beneficial overall, as it will allow for greater access to fuel locations, thus resulting in drive time efficiencies and lower mileage on city vehicles searching for an authorized fueling location. The revised contract will also eliminate the use of the fuel cards for car washes. The City of Columbus currently has a separate contract for car washes and by restricting car wash access, savings of $4-$6 per wash are anticipated. It is necessary to modify the existing city-wide contract with MPC Investments LLC dba Speedway LLC to reflect these changes.
The vendor is currently working through transitioning with a new card management system and should be in place by early summer. Due to the work involved in reissuing the 1,868 cards currently in use, this ordinance is being submitted as an emergency in order to provide the new fuel cards as quickly as possible.
FISCAL IMPACT: No funding is required to modify the option contract. City agencies must set aside their own funding for their estimated expenditures.
Title
To authorize the Finance and Management Director to modify the contract for the option to obtain Retail Fleet Fuel Credit Card Services and to assign past, present and future contracts and purchase orders with MPC Investments LLC dba Speedway LLC; and to declare an emergency.
Body
WHEREAS, the Purchasing Office entered into a UTC contract for the Retail Fleet Fuel Credit Card Services RFP for use by various City agencies, as managed by the Division of Fleet Management; and
WHEREAS, MPC Investments, LLC., dba Speedway, LLC., has re-organized and taken a new federal tax ID number and in addition to notifying the City of the re-organization they have agreed to honor the past, present and future contracts and agreements; and
WHEREAS, it is necessary to modify the existing contract with MPC Investments, LLC., dba Speedway LLC, FL005403, to eliminate the discounts at stations other than Speedway and eliminate the provision of car washes; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Purchasing Office, in that it is immediately necessary to modify the contract for Retail Fleet Fuel Credit Card Services, thereby preserving the public health, peace, property, safety, and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to modify the contract for Retail Fleet Fuel Credit Card Services and all past, present and future contracts and purchase orders pursuant to those contracts to reflect the change of the Federal tax identification number and contract terms with MPC Investments, LLC., dba Speedway, LLC., from 27-1287018 to Speedway LLC 31-1551430.
SECTION 2. That this modification is in accordance with relevant provisions of CHapter 329 of the Columbus City Code.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.