Explanation
BACKGROUND: This legislation authorizes the transfer of $109,834.00 from the Special Income Tax Fund (SIT), authorizes the subsequent transfer and appropriation of $109,834.00 from the SIT to the Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvements Fund, and authorizes the Director of Public Utilities to enter into a contract for O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications.
A request for proposals was advertised in the City Bulletin and two proposals were received and opened by the Director of Public Utilities on November 5, 2003. Both vendors submitted bids for Options 1 and 2. Option 1 specified that the existing mechanical relaying equipment would be used; Option 2 specified new electronic relaying equipment. The bids received were as follows: Square D Company, Option 1: $99,876.00, Option 2: $109,834.00; GE Supply, Option 1: $176,900.00, Option 2: $195,700.00. An award to Square D Company for Option 2 is recommended in the amount of $109,834.00, based upon the lowest, responsive bid received. Square D Company is a majority vendor and their contract compliance number is 362440683.
Emergency action is requested as the existing breaker is obsolete and should be replaced immediately in order to avoid possible breakdown. In 2003, the City lost approximately $1,200 per day, or over $200,000, while the breaker was being repaired. Repair parts are no longer manufactured.
FISCAL IMPACT:
This ordinance certifies funding from the Special Income Tax (SIT) fund as a temporary measure until the next bond sale occurs, at which point the SIT will be reimbursed.
Title
To authorize and direct the City Auditor to transfer $109,834.00 from the Special Income Tax Fund to the Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvements Fund; to authorize the appropriation of said funds; to authorize the Director of Public Utilities to enter into a contract with Square D Company to provide O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications for the Division of Electricity; to authorize the expenditure of $109,834.00 from the Voted Street Lighting and Electricity Distribution Improvements Fund; and to declare an emergency. ($109,834.00)
Body
WHEREAS, O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications are required by the Division of Electricity in order to maintain the O'Shaughnessy hydro facility operational; and
WHEREAS, bids were received and opened by the Director of Public Utilities on November 5, 2003 for O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications; and
WHEREAS, Square D Company submitted the lowest responsive and responsible bid; and
WHEREAS, a transfer of funds from the Special Income Tax Fund is necessary to fund this purchase; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this purchase is presently expected not to exceed $109,834.00; and
WHEREAS, emergency action is necessary in order to avoid equipment failure and subsequent loss of revenue to the City; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Electricity, in that it is immediately necessary to enter into a contract with Square D Company for O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications 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 sum of $109,834.00 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, 2004 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 2. That the City Auditor is hereby authorized to transfer said funds to the Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvements Fund 553 at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 3. That the amount of $109,834.00 is hereby transferred and appropriated to the Division of Electricity 60-07, Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvements Fund 553, Distribution Improvements Project 670608, OCA Code 670608, Object Level Three 6651.
SECTION 4. That the Director of Public Utilities is hereby authorized to enter into a contract with Square D Company, in the amount of $109,834.00, for O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications for the Division of Electricity.
SECTION 5. That to pay the cost of the aforesaid contract, the expenditure of $109,834.00, or so much thereof as may be needed, be and is hereby authorized from the Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvements Fund 553, Division No. 60-07, Distribution Improvements Project 670608, OCA 670608, Object Level Three 6621.
SECTION 6. That upon obtaining other funds for O'Shaughnessy Hydro Breaker Replacement and Switchgear Modifications, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 2, above, and said funds are hereby deemed appropriated for such purpose.
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 2, above.
SECTION 8. The City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended.
SECTION 9. 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.