Explanation
1. BACKGROUND:
This ordinance authorizes the Director of Public Service to enter into a purchase contract for Single Space Parking Meters, and ancillary equipment and training services, for the Division of Mobility Options. This ordinance seeks authority to expend $749,965.00 in available capital funds for the Division of Mobility Options, in the Department of Public Service.
This contract will provide the City with the ability to replace its entire inventory of 4300 parking meters, which has exceeded its designed service life, and allow for expansion. The contract terms will include fixed costs for the parking meters over the five-year contract period, and will be subject to the availability of funding and the approval of City Council. The Division of Mobility Options is currently proposing to purchase 5500 parking meters over this period.
During the last three years, the Department's engineering and Parking Violations Bureau personnel have researched the parking meter market and technology performance. Essentially, there are four single-spaced parking meters providers servicing North America. Research included benchmarking those communities that both encounter extreme weather conditions similar to those in central Ohio, and which have been utilizing advanced-technology meters. In 2008, the City undertook a 9-month field test of single-spaced meters with credit card capability on Gay Street, over a period including both winter and summer weather conditions.
As a result of this successful trial, it was determined, as stated in the evaluation report, that the city should initiate a parking meter program, using advanced technology meters that would provide both additional, customer-friendly, payment options and increased operational cost efficiencies. Primary among the desired features that were incorporated into this recent procurement activity include: multiple forms of payment; solar-recharging batteries; mechanisms that do not require replacing the entire parking meter unit; internet-based meter management; and a larger display on the meters, for more robust messaging to customers.
2. PROCUREMENT EFFORT/BID WAIVER REQUEST:
Division of Mobility personnel, in consultation with the Purchasing Office staff, performed a thorough review of the performance specifications for this Parking Meter procurement. In May of this year, the Purchasing Office undertook a competitive solicitation through a formal Invitation to Bid (ITB), in accordance with the competitive procurement provisions of Chapter 329 of the Columbus City Code. Of those solicited, one bid was received by IPS Group, Inc., on May 27, 2010.
IPS Group's bid failed to completely respond to the specific requirements of the ITB, and was rejected by the Purchasing Office. Upon consultation with the Purchasing Office, the Department of Public Service has determined it to be in the best interests of the City of Columbus for this City Council to waive the competitive procurement provisions of the City Code, in order to allow this Parking Meter purchase contract to be awarded to IPS Group. The department bases this request on the fact that IPS Group's bid submission met all of the technical performance requirements of the specification. The deficiencies in their bid were primarily limited to their inclusion of additional information beyond the bid proposal's specific reference items. This additional information included more options than what was required within the rigidly structured ITB format.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against IPS Group, Inc.
3. CONTRACT COMPLIANCE
IPS Group, Inc. contract compliance number is 233028164 and it expires 5/27/2012.
4. FISCAL IMPACT:
This project is budgeted within the 2010 Capital Improvement Budget, in the amount of $200,000. This expense can be accommodated within the Streets and Highways G.O. Bonds Fund, Parking Meters - Commodities project, by appropriating and transferring $200,000.00 within the Special Income Tax Fund. This funding method is a temporary measure, and this amount will be restored to the Special Income Tax Fund, subsequent to the next note/bond sale for the Division of Design and Construction Capital Improvement Projects.
Additional funds are being provided from residual Street and Highway Improvement funds, which are the result of project under runs and document cancellations. The 2010 Capital Improvements Budget will be amended to provide sufficient budget authority for this expenditure.
Title
To authorize the Director of Public Service to enter into a contract with IPS Group, Inc., to purchase Single Space Parking Meters for the City's Parking Meter Program, to authorize and direct the City Auditor to transfer $200,000.00 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund and $549,965.00 within the Street and Highway Improvement Fund; to authorize the City Auditor to appropriate $200,000.00 within the Streets and Highways G.O. Bonds Fund and $549,965.00 within the Street and Highway Improvement Fund, and to authorize the expenditure of $749,965.00 from said Funds for the Division of Mobility Options; and to waive the competitive bidding requirements of the City Code, and to declare an emergency. ($749,965.00)
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on May 27, 2010, and received one bid proposal from the IPS Group, Inc.; and
WHEREAS, due to the fact that IPS Group, Inc. provided additional information, beyond what was required in the rigidly structured Invitation to Bid, for this procurement, the Purchasing Office, with the concurrence of the Department of Public Service, was required to reject its bid; and
WHEREAS, after a joint review of this procurement by both agencies, it was the consensus that the City did undertake a competitive bid process in good faith, and that it was extremely unlikely that an additional procurement would provide any better results for the City; and that the best course of action was for the Department of Public Service to request Columbus City Council to waive the competitive procurement provisions of the Columbus City Code, and to authorize the Director to enter into contract with the apparent low bidder, IPS Group, Inc., in order to facilitate the establishment of a multi-year contract for the purchase of a replacement inventory of parking meters for the City as soon as possible; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount which the city will issue to finance Phase 1 of the project is presently expected not to exceed $200,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the "Project;") and
WHEREAS, the Department of Public Service hereby requests this Columbus City Council to authorize the Director of Public Service to enter into an agreement with the IPS Group, Inc.; to waive the competitive procurement requirements of the Columbus City Codes; to authorize the transfer of available capital funds and an amendment to the 2010 Capital Improvements Fund, pursuant to the implementation of a multi-year parking meter program purchase plan for the Division of Mobility Options and ; now, therefore,
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service and Transportation in that it is immediately necessary to pass this ordinance as an emergency measure because of the need to replace out of service parking meters so the City can operate an effective, efficient parking meter program; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Service be and is hereby authorized to enter into a multi-year contract for the purchase of Single Spaced Parking Meters and associated program services with IPS Group, Inc.
Section 2. That the sum of $200,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources, and unappropriated for any other purpose during the fiscal year ending December 31, 2010, to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, 704, at such time as it is deemed necessary by the City Auditor, and to expend said funds or so much thereof as may be necessary.
Section 4. That $200,000.00 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-10, Division of Mobility Options, Object Level One Code 06, Object Level Three Code 6651, OCA Code 591087 and Project 540001-100000 for the Parking Meters - Commodities project for the Division of Mobility Options.
Section 5. That the monies appropriated in the foregoing Section 4 shall be paid upon order of the Director of Public Service, and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
Section 6. That upon obtaining other funds for this capital improvement, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3 above.
Section 7. That the City Auditor is authorized to make any necessary accounting changes to revise the funding source for any contract(s) or contract modification(s) associated with the expenditure of the funds transferred under Section 3 above.
Section 8. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred, with respect to the Project, from the proceeds of obligations to be issued by the City, in a principal amount currently estimated to be $200,000.00 (the "Obligations.")
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of either the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
Section 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
Section 10. That the 2010 Capital Improvement Budget authorized by ordinance 0564-2010 be and is hereby amended to provide sufficient authority for this project as follows:
Fund/Project / Project Name /OCA/ Current / Change / Amended
766 / 530161-100000 / Roadway Improvements / $800,557.00 (Carryover) / ($549,965.00) (Carryover) / $250,592.00 (Carryover)
766 / 540001-100000 / Parking Meters - Commodities / $0.00 (Carryover) / $549,965.00 (Carryover) / $549,965.00 (Carryover)
Section 11. That the sum of $549,965.00 be and hereby is appropriated from the unappropriated balance of Fund 766, the Street and Highway Improvement Fund, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2010, to Dept-Div. 59-10, for the Division of Mobility Options as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
766 / 530161-100000 / Roadway Improvements / 06-6600 / 590010 / $549,965.00
Section 12. That the transfer of cash and appropriation within The Street and Highway Improvement Fund, 766, be authorized as follows:
Transfer From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
766 / 530161-100000 / Roadway Improvements / 06-6600 / 590010 / $549,965.00
Transfer To:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
766 / 540001-100000 / Parking Meters - Commodities / 06-6600 / 760100 / $549,965.00
Section 13. That the expenditure of $749,965.00 is hereby authorized for the above described purchase as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 540001-100000 / Parking Meters - Commodities / 06-6651 / 591087 / $200,000.00
766 / 540001-100000 / Parking Meters - Commodities / 06-6651 / 760100 / $549,965.00
Section 14. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving, and does hereby waive Sections 329.06 (Formal Competitive Bidding) of the Columbus City Code.
Section 15. That this ordinance shall take effect and be in force from and after the earliest period allowed by law. 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 approvals by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.