Explanation
Background: This ordinance authorizes the Director of Finance and Management to modify contracts with Altec Inc. dba Altec Industries, Inc., in order to pay surcharges passed along from suppliers. Proper documentation was received and approved by Purchasing and the Department of Public Utilities.
The Department of Public Utilities aka Columbus Water & Power (CWP) 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 marketplace, 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 $19,652.00 for the trucks. CWP feels these changes are acceptable considering the supply chain issues and increased material costs therein, and the vehicles offered by the contracted vendor will meet the needs of CWP and maintain the replacement of aged vehicles in the Division of Power’s fleet. The following vehicles were assessed for surcharges:
PO330711:
Two (2) 60' Bucket Trucks:
Original Cost $351,321.00 + Surcharge $9,826.00 = New Cost $361,147.00
Total Surcharges = $19,652.00
Altec Inc. dba Altec Industries, Inc.: Universal Term Contract Purchase Agreement, PA004943, Ordinance 2813-2020, for Bucket Trucks.
Principal Party:
Altec Inc. dba Altec Industries, Inc.
210 Inverness Center Dr.
Birmingham, AL 35242
Donald Hensel, (205) 991-7733
Contract Compliance Number: 025767
Contract Compliance Expiration Date: PENDING UPDATE
Fiscal Impact: $19,652.00 is available from within the Electricity Operating Fund to meet the financial obligations of this contract.
Emergency Justification: Emergency action is requested so this equipment can be put into service as quickly as possible to prevent interruption to or disruption of the Division of Power operations.
Title
To authorize the Director of Finance and Management, on behalf of the Department of Public Utilities, to modify contracts with Altec Inc. dba Altec Industries, Inc.; to allow for raw material and labor surcharges of up to $19,652.00; to authorize the expenditure of up to $19,652.00 from the Division of Electricity Operating Fund; and to declare an emergency. ($19,652.00)
Body
WHEREAS, the Department of Public Utilities, Division of Power, has a need to maintain the replacement of aged vehicles in the Division of Power’s fleet; and
WHEREAS, ordinance 3175-2021 authorized the purchase of and payment for multiple trucks to Altec Inc. dba Altec Industries, Inc.; and
WHEREAS, after ordinances were passed, Altec Inc. dba Altec Industries, Inc., 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 $19,652.00 is necessary to build the trucks; and
WHEREAS, the Department feels the surcharges of up to $19,652.00 is acceptable and the trucks will meet the needs of the Department; and
WHEREAS, the trucks have been delivered; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to modify the contracts with Altec Inc. dba Altec Industries, Inc. to add surcharges of up to $19,652.00 for existing truck orders; and
WHEREAS, it is necessary to authorize the expenditure of up to $19,652.00 with Altec Inc. dba Altec Industries, Inc. 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 Power operations, all 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 Finance and Management Director is hereby authorized to modify the contracts with Altec Inc. dba Altec Industries, Inc. for trucks on order and/or delivered, for the purpose of adding the surcharges of up to $19,652.00.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of the Columbus City Codes.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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 5. That for the purpose stated in Section 1, the expenditure of $19,652.00 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized in object class 06 Capital Outlay from within the Electricity Operating Fund, per the accounting codes in the attachments to this ordinance.
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.