ORDINANCE NO. BL2015-33
An ordinance approving a master agreement between The Metropolitan Government of Nashville and Davidson County and Merrill Lynch Commodities, Inc. for the purpose of stabilizing the net expense incurred in the purchase of gasoline and/or diesel fuel.
WHEREAS, pursuant to T.C.A. Sec. 7-51-911, the Metropolitan Government is authorized to enter into a negotiated contract with other municipalities and financial institutions for the purpose of stabilizing the net expense incurred in the purchase of gasoline and/or diesel; and
WHEREAS, it is contemplated that each transaction pursuant to the master agreement will not exceed eighty percent of the annual gasoline and/or diesel fuel quantity usage; and
WHEREAS, it is contemplated that the Director of Finance, the Treasurer or their respective designees will execute each transaction pursuant to the terms of the master agreement, this Ordinance and the Fuel Cost Management Policy; and
WHEREAS, it is prudent and advisable for the Metropolitan Government to enter into a master agreement for which the purpose is to acquire a set cost for the purchase of gasoline and diesel fuel which will benefit the budget process of the Metropolitan Government; and
WHEREAS, in accordance with the Fuel Cost Management Policy, the Fuel Cost Management Program Advisor performed a competitive search to engage financial institutions as counterparties to the master agreement; and
WHEREAS, it is in the interest for the public welfare of The Metropolitan Government of Nashville and Davidson County to enter into such fuel stabilization agreements.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the master agreement and schedule between The Metropolitan Government of Nashville and Davidson County and Merrill Lynch Commodities, Inc., in the form attached hereto is hereby approved and the Director of Finance is authorized to execute the same on behalf of the Metropolitan Government with only such necessary and required modifications as to give full effect to this Ordinance.
Section 2. That the Director of Finance shall submit a monthly report to the Metropolitan Council regarding the use of the financial hedging program for fuel authorized pursuant to this Ordinance. Such report shall include, but not be limited to: (1) a list of transactions identifying the quantity of fuel purchased, the agreed-upon price, and the market price at the time of the transaction; (2) a copy of the contract for each transaction; and (3) a comparison between the amount budgeted for fuel and the amount actually paid under the hedging contract(s).
Section 3. That this Ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Bill Pridemore
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|Introduced:||October 20, 2015|
|Passed First Reading:||October 20, 2015|
|Referred to:||Budget & Finance Committee|
|Passed Second Reading:||November 3, 2015|
|Passed Third Reading:||November 17, 2015|
|Approved:||November 18, 2015|
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