Explanation
1. BACKGROUND
This legislation requests authority for the Director of the Department of Finance and Management to issue a purchase order for additional roadway salt purchases of up to $334,513.92 for the Department of Public Service. The Department of Public Service, Division of Planning and Operations, is responsible for the city roadway system's snow and ice control program. Rock salt is used extensively in this operation. Based upon the number and frequency of snow and ice events that have occurred so far this season, the City's roadway salt purchase capacity has been reduced to a limit that requires the Department to undertake the steps necessary to ensure that it has sufficient purchase capacity for the remainder of this season.
For the 2010/2011 snow and ice season, the City of Columbus opted to participate in the Ohio Department of Transportation's (ODOT) annual cooperative purchasing contract, Contract Number 018-11, which allows participating government agencies to purchase rock salt from a state-wide competitively selected vendor. ODOT established this contract as a cooperative agreement for use by other governmental agencies, in accordance with Chapter 5513.01 (B) of the Ohio Revised Code. Cargill Incorporated was the selected vendor for the area that includes central Ohio.
Ordinance No. 0322-2010 passed March 10, 2010, authorized the Department of Finance and Management (DOFM) to utilize the ODOT Cooperative Purchase contract, and to establish purchase orders in the amount of $1.5 Million, that provided for purchase capacity of up to 31,104 tons, of which 25,432.35 has been encumbered, as of January 25, 2011. This contract committed the city to $1.5 Million of the city's projected contracted seasonal needs. In addition, this contract enables the City to purchase additional quantities of up to a maximum of $334,513.92.
Depending upon the severity of the remaining winter season weather, the Department of Public Service may submit another ordinance to Council, seeking authorization to establish additional rock salt purchase capacity beyond what is authorized within this legislation.
2. FISCAL IMPACT
$334,513.92 is required and is budgeted in the Division of Planning and Operations 2011 Municipal Motor Vehicle License Tax Fund.
3. EMERGENCY DESIGNATION
The Department of Public Service is requesting this ordinance be considered an emergency measure, in order to provide for the immediate issuance of the additional roadway salt purchase capacity that is necessary to maintain the safety of the city's roadway infrastructure during snow and ice events during the FY 2010-2011 snow season.
Title
To authorize the Director of the Department of Finance and Management to establish a blanket purchase order for rock salt; to authorize the expenditure of $334,513.92 from the Municipal Motor Vehicle License Tax Fund for the Department of Public Service, Division of Planning and Operations; and to declare an emergency. ($334,513.92)
Body
WHEREAS, the Department of Public Service, Division of Planning and Operations, is responsible for the snow and ice control program on the City's roadway system; and
WHEREAS, rock salt is heavily used in fulfilling this program; and
WHEREAS, a Cooperative Purchasing Contract was established by the Ohio Department of Transportation (ODOT), namely Contract Number 018-11, for use by the State's public entities, for the option to purchase rock salt for the 2010-2011 winter season; and
WHEREAS, the Director of Finance and Management was granted authorization to enter in a contract with the Ohio Department of Transportation (ODOT), to participate in a cooperative purchase contract for the purchase of rock salt by Ordinance No. 0322-2010; and
WHEREAS, the Director of Finance and Management entered into a contract with ODOT's selected vendor, Cargill Incorporated, for $1,500,000.00 for the purchase of rock salt under Ordinance No. 0322-2010; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to establish purchase orders for the purchase of rock salt; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service, in that it is immediately necessary to authorize the Director of Finance and Management to establish purchase orders for the purchase of rock salt, consistent with the terms and conditions of the ODOT cooperative purchase contract, in order to assure an uninterrupted supply of this critical commodity, 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 Director of Finance and Management is authorized to establish a blanket purchase order for rock salt with Cargil, Inc. under the terms of the Ohio Department of Transportation (ODOT) Cooperative Purchasing, Contract No. 018-11 for use by the State's public entities.
Section 2. That the expenditure of $334,513.92, or so much thereof as may be needed, be and hereby is authorized from
Fund 266, the Municipal Motor Vehicle License Tax Fund; Division of Planning and Operations, Department-Division No. 59-11, for the purchase of rock salt as follows:
Fund / O.L 01-03 Codes / OCA
266 / 02-2192 / 591128 / $334,513.92
Section 2. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
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.