City Auditor Urges Consolidation of Fueling Systems • Long Beach Post News

The final and fourth part of City Auditor Laura Doud’s fuel audit was released this week, discussing the possibility of consolidating fuel operations citywide given the “multiple fuel systems and the size and complexity of the fuel operations.”

Results from the previous three reports—analyzing the cost and use of the fueling systems which are overseen by the Fleet Services Bureau (FS), the Harbor Department (HD), and the Water Department (WD)—are now combined into a single analysis in which Doud insists for three particular reasons that the City consider consolidating their fuel systems.

Firstly, all three areas are due for system upgrades. HD and WD are operating on the archaic software versions of the Orpak system while FS operates on the EJ Ward system. However, given the budgeted FS upgrade set for 2014, it is possible to streamline FS into the Orpak system while upgrading the software for HD and WD.

Secondly, inefficient hardware often permits—through the uncontrolled use of fuel keys, master keys and box rings—unlimited fueling. Additionally, the ability to properly account for fuel consumption entirely is lost through these methods, leading Doud to once again point to consolidation as the most efficient method to solve this issue.

“The fuel systems also possess functionality to set system parameters, which restrict the use of fuel based on the user’s need,” her report said. “We found that none of the departments were using this function effectively with system parameters either not used, unreasonable or ineffective in controlling access to fuel.”

Thirdly, the lack of personnel is, according to the report, detrimental to maintaing oversight, monitoring fuel transactions and establishing policies and procedures that maintain accountability. The inability to detect problems throughout the fueling systems has led to inconsistencies in operation.

“Given the possible benefits of a more centralized approach to management of the City’s fuel operations, we recommend Harbor, Water and Fleet Services consider the concept of consolidation and explore the pros and cons in more detail,” said Doud in her Executive Summary. “Consolidation would not only provide for potential cost savings but would also allow for vast improvements to the administration of this significant City operation, which would provide greater assurance that this valuable City resource is protected and used only as intended.”

Read the full report below.