Audit Says Cortlandville Should Bid Fuel Purchases, But Found Town Paid Lowest Price
An audit of the Town of Cortlandville’s finances by the State Comptroller’s Office finds the town failed to bid out its fuel purchases, but the review did fing that the town was receiving a lower fuel price than what it would have paid on state bid.
State Comptroller Tom DiNapoli says from January of 2011 to June of 2012 the Town of Cortlandville used approximately 39,000 gallons of diesel fuel and 21,000 gallons of unleaded gas. The total cost of this fuel used was approximately $185 thousand dollars.
While the town paid the lowest price for fuel purchased from a national gas station chain, when compared to available state and county contract prices, it failed to comply with General Municipal Law and the town’s adopted procurement policy by neglecting to bid fuel purchases.
The report points out that the county has a fueling station at the County Highway Garage and competitively bids its fuel purchases, but given the six mile distance from the Town Highway Garage to the county facility and the low fuel mileage of the town equipment, it would not be a benefit to the town to buy fuel from the county.
The town could build its own fueling station, but it would take the town 50 years to recoup the cost of fueling facility.
The report concludes that even though the town is getting the best price for fuel, the town Highway Superintendent should still bid out all fuel purchases.