Explanation
1. BACKGROUND
The purpose of this ordinance is to authorize the Director of Finance and Management to modify contracts with Columbus Truck & Equipment Center LLC, in order to pay surcharges passed along from the suppliers. Proper documentation was received and approved by Purchasing and the Department of Public Service.
The Department of Public Service, Division of Refuse Division, has placed orders with several vendors for different types of equipment over the past three years, however due to the long lead times for production and delivery in the post-pandemic market place, many surcharges are being assessed by the manufacturers and their suppliers.
This ordinance authorizes the Director of Finance and Management to modify the existing contracts to add the surcharges of up to $188,670.00 for the trucks. The Department of Public Service feels these changes are acceptable considering the supply chain issues and increased material costs therein, during the COVID-19 pandemic, and the vehicles offered by the contracted vendor will meet the needs of the Department of Public Service, and maintain the replacement of aged vehicles in the Division of Refuse Collection’s fleet. The following vehicles were assessed surcharges:
PO338089 - Six (6) Mack/Curbtender 24-Yard Automated Side Loading Trucks:
Original Cost $389,500.00 + Surcharge $31,445 = New Cost $420,945.00
Surcharge Total = $188,670.00
Columbus Truck & Equipment Center LLC: Universal Term Contract Purchase Agreement, PA005650, Ordinance 3096-2021, for Automated Side Loading Trucks.
Columbus Truck & Equipment Center LLC is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for the vendor:
Columbus Truck & Equipment Center LLC is CC008547 and expires 12/10/2026.
3. FISCAL IMPACT
Funds are budgeted and available for this expenditure from the Division of Refuse Collection Bond Fund 7703.
4. EMERGENCY DESIGNATION
The department requests emergency designation so this equipment can be put into service as quickly as possible to prevent interruption to, or disruption of, the Division of Refuse Collection operations.
Title
To authorize the Finance and Management Director, on behalf of the Department of Public Service, to modify contracts with Columbus Truck & Equipment Center LLC; to allow for raw material and labor surcharges of up to $188,670.00; to authorize the expenditure of up to $188,670.00 from the Division of Refuse Collection Bond Fund; and to declare an emergency. ($188,670.00)
Body
WHEREAS, the Department of Public Service, Division of Refuse Collection, has a need to maintain the replacement of aged vehicles in the Division of Refuse Collection’s fleet; and
WHEREAS, ordinances 3096-2021 and 3530-2024 authorized the purchase of and payment for multiple trucks to Columbus Truck & Equipment Center LLC; and
WHEREAS, after ordinances were passed, Columbus Truck & Equipment Center LLC, notified the Director of Finance and Management that due to supply chain and labor issues beyond their control, a raw materials and labor surcharge of up to $188,670.00 is necessary to build the trucks; and
WHEREAS, the Department feels the surcharges of up to $188,670.00 is acceptable and the trucks will meet the needs of the Department; and
WHEREAS, the trucks have been delivered, and are currently in service; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to modify the contracts with Columbus Truck & Equipment Center LLC to add surcharges of up to $188,670.00 for existing truck orders; and
WHEREAS, it is necessary to authorize the expenditure of up to $188,670.00 with Columbus Truck & Equipment Center LLC for the raw material and labor surcharges for the trucks; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance in that it is immediately necessary to authorize the Director to modify the contracts for the trucks and pay the additional surcharges so this equipment can be put into service as quickly as possible, as to prevent interruption to, or disruption of, the Division of Refuse Collection operations, all for the immediate preservation of the public health, peace, property, safety, and welfare; and now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is hereby authorized to modify the contracts with Columbus Truck & Equipment Center LLC for truck on order and/or delivered, for the purpose of adding the surcharges of up to $188,670.00.
SECTION 2. That the expenditure of up to $188,670.00, or as much thereof as may be necessary, is hereby authorized in Fund 7703 (the Division of Refuse Collection Bond Fund ), Dept-Div 5902 (Division of Refuse Collection) in Object Class 06 (Vehicles) per the account codes in the attachment to this ordinance.
SECTION 3. 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 4. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the director of the department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 5. 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.