Explanation
BACKGROUND: This legislation waives the Columbus City Code provisions for competitive sealed bidding and authorizes the Finance Director to purchase transformers for the Division of Electricity. A vendor that was awarded a universal term contract for Transformers and Regulators has been deemed as a non-performing vendor and the contract has been cancelled. The Division of Electricity is now at or below the safe level for these items in its inventory and, therefore, has been placed into an emergency situation. There is insufficient time for formal bid procedures to meet the division's needs for transformers for customer development and to maintain distribution operations.
Sixty-three (63) informal bids were solicited by the Purchasing Office and five (5) bids (all majority-owned business enterprises) were received on November 22, 2004, SO016587. An award, in the amount of $116,067.00, is recommended to Reed City Power Line Supply based upon the lowest informal bid submitted for all items. Their contract compliance number is 381783949. A bid tabulation is attached for your review.
Emergency action is requested so that purchase orders may be established and orders placed as soon as possible to meet the division's need.
FISCAL IMPACT: There is sufficient budget authority within the Division of Electricity's Operating Fund for this purchase. $351,715 was spent in 2003 and $190,961 was spent in 2002 from the Electricity Operating Fund and the Voted Street Lighting and Electricity Distribution Improvements Fund for the purchase of transformers.
Title
To authorize the Finance Director to purchase transformers from Reed City Power Line Supply for the Division of Electricity; to waive the competitive bidding procedures of the Columbus City Code; to authorize the expenditure of $116,067.00 from the Division of Electricity Operating Fund; and to declare an emergency. ($116,067.00)
Body
WHEREAS, the Division of Electricity has an immediate need to purchase Transformers to serve its customers and to maintain its distribution operations; and
WHEREAS, the failure of a vendor to fulfill its obligations under the terms of a universal term contract for Transformers has created an emergency situation; and
WHEREAS, there is insufficient time to obtain formal bids in time to meet the need; and
WHEREAS, it is in the best interest of the City to waive the formal competitive bidding provisions of Columbus City Code to purchase transformers required by the Division of Electricity; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Electricity, in that it is necessary to purchase transformers 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 Director be and is hereby authorized to purchase transformers for the Division of Electricity, from Reed City Power Line Supply, in the amount of $116,067.00, in accordance with the lowest informal bids received for solicitation number SO016587.
SECTION 2. Pursuant to Section 329.27 of the Columbus City Code, 1959, it is determined to be in the best interest of the City of Columbus that the provisions of Section 329.06 for competitive sealed bidding be and are hereby waived for this purchase.
SECTION 3. That to pay the cost of the aforesaid purchase, the expenditure of $116,067.00, or so much thereof as may be needed, is hereby authorized from the Division of Electricity Operating Fund 550, Division Number 60-07, OCA Code 606749, Object Level Three 6621.
SECTION 4. 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.