Explanation
This legislation authorizes the Public Service Director to establish an encumbrance within the Special Income Tax Fund to pay 2006 refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Refuse Collection Division. This expense is necessary to safely and contractually dispose of the refuse collected by the Division in the course of pursuing its mission by providing residential refuse collection services to over 325,000 households weekly.
The Finance Department has determined that $13,809,000.00 should be adequate for this purpose. This number is based on estimated refuse tonnage of 356,037 tons estimated to be taken to SWACO in 2006. Actual tonnage is susceptible to variables such as the weather and the number of households collected that cannot be absolutely predicted at this time. If necessary, additional legislation will be submitted to increase this amount later this year. Previous years' actual tipping fee expenditures totaled $10,787,906.67 (2001), $10,551,338.72 (2002), $10,916,155.71 (2003) and $10,816,454.46 (2004). Through November 2005, actual 2005 expenditures totaled $11,057,297.07. In 2005, tipping fees increased $4.75 per ton ($3.25 SWACO fee increase and $1.50 State of Ohio environmental fee). Effective January 1, 2006, SWACO raised tipping fees by $2.50 per ton to $45.25 per ton or $38.25 per ton after the $7.00 per ton debt retirement credit is applied.
Formal competitive bidding requirements must be waived because refuse disposal services other than those provided by SWACO are available in the marketplace, however the City is contractually obligated to tip at SWACO facilities. Tipping fee rates are determined by SWACO's established rate setting process.
This 2006 expense is budgeted within the Special Income Tax Fund.
Emergency action is requested to avoid payment delays to the Solid Waste Authority of Central Ohio (SWACO) that will result in the City incurring an interest penalty.
Title
To appropriate $13,809,000.00 within the Special Income Tax Fund; to authorize the Public Service Director to establish an encumbrance in this amount to pay 2006 refuse tipping fees to the Solid Waste Authority of Central Ohio for the Refuse Collection Division pursuant to an existing lease agreement; to authorize the expenditure of $13,809,000.00 or so much thereof as may be necessary from the Special Income Tax Fund; to waive the competitive bidding requirements of the Columbus City Code; and to declare an emergency. ($13,809,000.00)
Body
WHEREAS, the Refuse Collection Division must encumber funds to continue refuse tipping at the Solid Waste Authority of Central Ohio's facilities pursuant to the lease agreement between the City and the Authority for those facilities; and
WHEREAS, these funds must be appropriated within the Special Income Tax Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Refuse Collection Division, Public Service Department, in that it is immediately necessary to establish an encumbering document with the Solid Waste Authority of Central Ohio for 2006 refuse disposal services to avoid incurring interest penalties due to late payments, 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 sum of $13,809,000.00 be and hereby is appropriated from the unappropriated balance of Fund 430, the Special Income Tax 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, 2006, to Department No. 59-02, Public Service Department, Refuse Collection Division, Object Level One Code 03, Object Level Three Code 3389 and OCA Codes 593715 ($4,603,000.00), 593954 (4,603,000.00) and 594341 ($4,603,000.00).
SECTION 2. That the monies appropriated in Section 1 shall be paid upon order of the Public Service Director 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 3. That the Public Service Director be and hereby is authorized to establish an encumbrance with the Solid Waste Authority of Central Ohio for 2006 refuse tipping services for the Refuse Collection Division at the various rate charges assigned to each tipping location and any legal subsequently adjusted rates.
SECTION 4. That the expenditure of $13,809,000.00.00 or so much thereof as may be needed be and hereby is authorized from Fund 430, the Special Income Tax Fund, Department No. 59-02, Public Service Department, Refuse Collection Division, Object Level One Code 03, Object Level Three Code 3389 and OCA Codes 593715 ($4,603,000.00), 593954 (4,603,000.00) and 594341 ($4,603,000.00).
SECTION 5. That in accordance with Section 329.27 of the Columbus City Code, City Council has determined that it is in the best interest of the City of Columbus that Section 329.06 relating to formal competitive bidding requirements be waived and hereby waives said section.
SECTION 6. 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.