Explanation
Background: The Fleet Management Division has been purchasing vehicle tires through a State Term Contract (State Bid STS 260) for many years. On November 2nd Fleet Management received notification from the State that this contract had not been renewed and had officially expired as of November 1, 2012. The City of Columbus had no prior notification from the State or any other entity that this contract would not be renewed or renegotiated prior to its termination.
Pursuant to this contract termination, a Mayor's Emergency Letter was issued by the Department of Finance & Management, on behalf of the Fleet Management Division. This letter was subsequently approved by Mayor Coleman and authorized the expenditure of $150,000 for the purchase of various automobile, truck and vehicle tires from WD Tire Warehouse, Inc. and Wingfoot Commercial Tire Systems LLC. The expenditures authorized by this Mayor's Emergency Letter was to serve as bridge funding in hopes that the state term contracting dispute was successfully resolved.
At the time of this ordinance, contract negotiations between the vendors and the State of Ohio remains unresolved. This situation offers the potential for severe disruption of tire procurement for the City of Columbus and other governmental units that also purchase from this contract. Though Fleet Management has been notified by the State that negotiations continue with certain tire vendors, there is a possibility that the current State Contract may not be renewed. This notwithstanding, the Fleet Management Division respectfully requests the authority to continue the purchase of vehicle tires, using current vendors under previously approved State-Term pricing and/or best pricing from these same vendors -under the same general terms and conditions. As such, this ordinance respectfully requests that the competitive bidding provisions of the City Codes be waived in order to participate in this contract arrangement with the vendors. Fleet Management has contacted these vendors and they have agreed to this contractual relationship pending the approval of this ordinance. This is crucial to the ongoing operation of the City's vehicles, including but not limited to, all emergency and public service vehicles.
The Fleet Management Division will contract with two existing vendors; WD Tire Warehouse, Inc. (CC#311138036) and Wingfoot Commercial Tire Systems LLC (CC#311735402) for the purchase of vehicle tires and service.
The Department of Finance and Management will provide funding for this project from the Fleet Management Fund: #513, OCA 451222, OL3 code 2282, in the amount of $350,000. This is a budgeted line-item within Fleet Management's current 2013 operating budget. Fleet is working with the State to ascertain the nature of continued negotiations and, concurrently, is working with the Purchasing Office to bid tires as a stand-alone City parts/service contract.
WD Tire Warehouse, Inc. CC#: 311138036, Exp: 07/06/2014
Wingfoot Commercial Tire Systems LLC CC#: 311735402, Exp: 03/08/2014
Fiscal Impact: This legislation authorizes the expenditure of $350,000.00 with WD Tire Warehouse and Wingfoot Commercial Tire Systems for the purchase of various automobile, truck, and vehicle tires. Funding is available within the Fleet Management Division 2013 Operating Budget for these expenditures.
Emergency action is requested to ensure an uninterrupted supply of vehicle tires for City equipment. These tires are used by all City vehicles, including Police, Fire and Refuse Collection vehicles. This ordinance is contingent on the passage of the 2013 budget.
Title
To authorize the Finance and Management Director to issue purchase orders with WD Tire Warehouse, Inc., and Wingfoot Commercial Tire Systems LLC for the provision of various automobile, truck, and vehicle tires; to authorize the expenditure of $350,000.00; to waive the competitive bidding provisions of the Columbus City Codes; and to declare an emergency. ($350,000.00)
Body
WHEREAS, the Finance and Management Department, Fleet Management Division, has a need to purchase various automobile, truck, and vehicle tires for use by various City departments including Police, Fire and Refuse Collection; and
WHEREAS, the Finance and Management Department, Fleet Management Division, previously procured such tires via a State Term Contract (STS 260), which expired effective November 1, 2012; and
WHEREAS, the Finance and Management Department, Fleet Management Division, requests the authority to continue the purchase of vehicle tires, using current vendors (WD Tire Warehouse & Wingfoot Commercial Tire Systems) under previously approved State-Term pricing and/or best pricing from these same vendors -under the same general terms and conditions; and
WHEREAS, the Purchasing Division is currently bidding under solicitation SA00754 in the event that the State of Ohio contract is not renewed; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Fleet Management Division in that it is immediately necessary to issue a purchase order for tire, automotive and truck parts and various fuel purchases, to ensure uninterrupted supply for City vehicles, including Police, Fire, and Refuse Collection Division vehicles, 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 Finance and Management Director is hereby authorized to issue purchase orders for the Fleet Management Division with WD Tire Warehouse & Wingfoot Commercial Tire Systems as follows:
WD Tire Warehouse, Inc.
CC#311138036, expires 07/06/2014
Vehicle Tires
OCA: 451222
Object Level Three: 2282
Wingfoot Commercial Tire Systems LLC
CC#311735402, expires 03/08/2014
Vehicle Tires
OCA: 451222
Object Level Three: 2282
Section 2. The expenditure of $350,000.00, or so much thereof that may be necessary in regard to the actions authorized in Section 1 above, be and is hereby authorized and approved as follows:
Dept/Div: 45-05
Fund: 513
OCA Code: 451222
Object Level One: 02
Object Level Three: 2282
Amount: $350,000.00
Section 3. That the monies in the foregoing Sections shall be paid upon order of the Director of Finance and Management, 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 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 in accordance with the Columbus City Codes, City Council has determined it is in the best interest of the City that competitive bidding requirements be and are hereby waived for the action authorized in Section 1 of this ordinance.
Section 6. That for 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, nor ten days after passage, if the Mayor neither approves nor vetoes the same.