Explanation
BACKGROUND: Ordinance No. 1184-2008, passed July 21, 2008, authorized the Finance and Management Director to enter into contract on behalf of the Office of Construction Management with RH Burton and Latham & Phillips Ophthalmic for the purchase of optometry equipment to be installed at the Westside Health Center, to be located in the vicinity of 2300 West Broad Street. Construction is expected to be complete in Summer 2009.
Formal bids were solicited on February 6, 2008, and returned on February 21, 2008. Two bidders responded (0 MBE, 0 FBE): RH Burton and Latham & Phillips. Each bid on thirty-six (36) separate items. It was the recommendation of the Office of Construction Management to split the contract between the two companies based on the low bid for each item, with one exception. RH Burton was awarded a contract in the amount of $59,473.00 and Latham & Phillips was awarded a contract in the amount of $38,693.40. Each contract included an additional $3,000.00 for storage cost. The total of these contracts was $104,166.40.
However, RH Burton subsequently went out of business. Because the equipment is still needed, the Office of Construction Management recommends establishing an additional contract with Latham & Phillips, the only other bidder on these items. Latham & Phillips submitted a new bid for the items that were originally awarded to RH Burton. Latham & Phillips bid held their original prices, which will represent a price increase of $3,504.00 over the RH Burton contract. A contract has been established for the original items awarded to Latham & Philips. Therefore, this ordinance requests approval for the Office of Construction Management to enter into an additional contract with Latham & Phillips for items originally bid and awarded to RH Burton and to waive the competitive bidding provisions of the Columbus City Code Section 329 to allow the City to purchase all of the necessary medical equipment within the budget parameters.
Due to continuing price increases in optometry equipment, it was deemed prudent to purchase this equipment early. This will allow the City to purchase all of the necessary medical equipment within the budget parameters.
The contract will include all necessary optometry dispensary equipment and storage. The City will purchase the equipment up-front and the contractor will store the equipment for the City in the interim between the purchase and the completion of the building.
This ordinance also authorizes the Finance and Management Director to expend $10,000.00 or so much thereof as may be necessary to reimburse the General Fund for construction and building renovation expenses incurred by the Office of Construction Management. The Office tracks the hours that each employee works on individual projects and bills these hours back to the proper capital project.
Emergency action is requested to ensure the City receives this equipment at current market prices, avoiding future price increases.
Latham & Phillips Ophthalmic Contract Compliance Number 31-1222114 Expiration date 07/02/2010.
Fiscal Impact: The total cost of this contract is $65,977.00 ($62,977.00 for equipment purchase and $3,000.00 for storage cost). Funding will come from the Health G.O. Bonds Fund for the Westside Health Center project. This budget includes an unencumbered cash balance of $1,004,013.10.
Title
To authorize the Finance and Management Director to enter into a contract with Latham & Phillips Ophthalmic for necessary optometry dispensary equipment for the West Side Health Center in the amount of $65,977.00; to authorize the Finance and Management Director to expend $10,000.00 or so much thereof as may be necessary, to reimburse the General Fund for construction and building renovation expenses incurred by the Office of Construction Management; to authorize the expenditure of $75,977.00 from the Health G.O. Bonds Fund for the Westside Health Center project; to waive the competitive bidding requirements of the Columbus City Codes; and to declare an emergency. ($75,977.00)
Body
WHEREAS, the Purchasing Office, in conjunction with the Office of Construction Management, solicited formal bids for optometry equipment on February 6, 2008, and two bids were returned on February 21, 2008; and
WHEREAS, Ordinance 1184-2008, passed July 21, 2008 authorized the purchase of equipment from RH Burton Company in the amount of $59,473.00 and Latham & Phillips in the amount of $38,693.40; and
WHEREAS, RH Burton has subsequently gone out of business; and
WHEREAS, it is necessary to authorize the Finance and Management Director to enter into a contract with Latham & Phillips Ophthalmic in the amount of $65,997.00 for the remaining optometry equipment purchase; and
WHEREAS, the Office of Construction Management requests approval to waive the competitive bidding provisions of the Columbus City Code Section 329 to allow the City to purchase all of the necessary medical equipment within the budget parameters; and
WHEREAS, the Office of Construction Management employs personnel that are engaged in construction and building renovation activities; and
WHEREAS, these costs can be capitalized and reimbursed to the General Fund; and
WHEREAS, it is necessary to authorize this expenditure in order to provide adequate operating resources for the Office of Construction Management; and,
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Office of Construction Management in that it is immediately necessary to authorize the Finance and Management Director to enter into contract with Latham & Phillips Ophthalmic for optometry equipment to ensure current market prices, avoiding future price increases, 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 Director of Finance and Management is authorized to enter into a contract for the purchase and storage of optometry equipment to be installed at the Westside Health Center, to be located in the vicinity of 2300 West Broad Street, in the amount of $65,997.00.
SECTION 2. That the Finance and Management Director is hereby authorized to expend $10,000.00 or so much thereof as may be necessary, to reimburse the General Fund for construction and building renovation expenses incurred in connection with capital improvements program in 2009.
SECTION 3. That the expenditure of $75,997.00 from Object Level 3, Minor Object 6620 or so much as may be necessary in regard to the action authorized in Sections 1 and 2, be and is hereby authorized and approved as follows:
Fund Dept/Div Project # Project Name OCA Amount
706 50-01 500504 Westside Heath Center 706504 $75,997.00
SECTION 4. That in accordance with Section 329.27 of the Columbus City Codes, City Council has determined it is in the best interest of the City of Columbus that the formal competitive bidding requirements of Chapter 329.05 be and hereby are waived for the action authorized in SECTION 1.
SECTION 5. That for the reasons state in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.