Explanation
1. BACKGROUND
The Division of Planning and Operations is responsible for conducting roadway improvements and snow and ice removal along the City's roadway system. To accomplish this mission the Division requires six single axle dump trucks and six tandem axle dump trucks. These trucks will replace older trucks beyond their useful service lives and provide for a more reliable fleet to carryout services provided by the Division.
This legislation authorizes the expenditure of $213,000.00 for the upfitting of components for these dump trucks. Ordinance 0748-2011 Authorized the purchase of components for these trucks. This purchase is consistent with the division's fleet replacement program.
The Purchasing Office is in the process of establishing a universal term contract with HYO Inc., dba Pengwyn Hydraulics, Ordinance 0819-2011 passed June 27, 2011, for the upfitting of dump trucks.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against HYO Inc., dba Pengwyn Hydraulics.
2. CONTRACT COMPLIANCE
HYO Inc., dba Pengwyn Hydraulics' contract compliance number is 34-1503254 and expires 10/31/11.
3. FISCAL IMPACT
The total cost of this purchase is $213,000.00. This equipment is budgeted within the 2011 Capital Improvement Budget. This expense can be accommodated by appropriating and transferring funds needed in the amount of $213,000.00 from the Special Income Tax Fund. Bonds have yet to be sold for this expense, necessitating a certification of $213,000.00 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed.
4. EMERGENCY
This legislation is requested to be heard as an emergency to ensure that the six single axle dump trucks and six tandem axle dump trucks are available for immediate use.
Title
To authorize the Finance and Management Director to establish a purchase order for the upfitting of six single axle dump trucks and six tandem axle dump trucks with HYO Inc., dba Pengwyn Hydraulics, in accordance with the terms and conditions of a pending citywide universal term contract, for the Division of Planning and Operations; to authorize and direct the City Auditor to transfer $213,000.00 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $213,000.00 within the Streets and Highways G.O. Bonds Fund; to authorize the expenditure of $213,000.00 from the Streets and Highways G.O. Bonds Fund; and to declare an emergency. ($213,000.00)
Body
WHEREAS, the Division of Planning and Operations is responsible for conducting roadway improvements and snow and ice removal along the City's roadway system; and
WHEREAS, the Division of Planning and Operations is in need of six single axle dump trucks and six tandem axle dump trucks; and
WHEREAS, ordinance 0748-2011 authorized the purchase of components for these trucks; and
WHEREAS, the Purchasing Office is in the process of establishing a universal term contract for the upfitting of dump trucks; and
WHEREAS, funds are budgeted in the 2011 Capital Improvement Budget for this expense; 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 of obligations which the city will issue to finance this project is presently expected not to exceed $213,000.00; 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, this purchase has been approved by the Fleet Management Division and this equipment does not offer environmentally preferred fuel options at this time; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service, Division of Planning and Operations, in that it is immediately necessary to upfit said six single axle dump trucks and six tandem axle dump trucks to be used for improvements to City Streets for the immediate preservation of 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 hereby authorized to establish a purchase order in the amount of $213,000.00 with HYO dba Pengwyn Hydraulics, 2550 West 5th Avenue, Columbus, OH 43204 for the upfitting of six single axle dump trucks and six tandem axle dump trucks in accordance with the terms and conditions of a pending universal term contract.
SECTION 2. The sum of $213,000.00 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, 2011 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, No. 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 $213,000.00 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-11, Division of Planning and Operations as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530020-100000 / Street Equipment / 06-6600 / 591246 / $213,000.00
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 establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in 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 $213,000.00 (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 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 sum of $213,000.00 or so much thereof as may be needed is hereby authorized to be expended from the Streets and Highways G.O. Bonds Fund, No. 704, Dept./Div. 59-11, OCA Code 591246, O.L. 01-03 Codes 06-6651, Project Number 530020-100000.
SECTION 11. 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.