Explanation
Background:
The Finance and Management Department, Fleet Management Division, has been approved to purchase three (3) new Fire Aerial Ladders which will be in service July 2011. Generally, when a new vehicle or apparatus is purchased there is a unit removed from service that is sold or disposed. The typical process of disposal for a vehicle is that it be advertised for sale via on-line auction.
Sutphen Corporation has offered to take these three ladders and in exchange will give the City of Columbus a service credit of $73,000 (or an average of $24,333.00 per ladder). The ladders that will be removed from Fleet are: Brass Tag # 17011, Ladder 34 & Brass Tag # 17010, Ladder 33 which are both model years 1993 and Brass Tag # 9793 Ladder 14 which is model year 1990.
Over the past five years Fleet Management has sold similar ladders through the auction and received from $2,177.00 to $15,805.00 per unit, with the average unit selling for $7,326.00. Based on this average sale the offer by Sutphen is in the best interests of the City - no better results are expected by advertising the assets for sale.
Contract compliance number is 31-0671786 expires 02/22/2012.
In 2010, the Division of Fleet Management has spent $237,620.00 in repair services for Fire apparatus with Sutphen Corporation.
Emergency action is requested so that this service credit will be available for use as soon as possible in the Fleet Management Division.
Title
To authorize the Finance and Management Director to accept a service credit in the amount of $73,000.00 from Sutphen Corporation in exchange for three Arial Ladders that are no longer of use by the Division of Fire; to waive the competitive bidding provisions of the Columbus City Codes, 1959; and to declare an emergency. ($0)
Body
WHEREAS, the Fleet Management Division purchases services from the Sutphen Corporation for Fire apparatus; and
WHEREAS, the Fire units which are to be removed from the City's fleet will receive a higher value amount in the form of a credit from Sutphen then we would have received from an on-line auction; and
WHEREAS, the City will put in place by the end of July 2011 three new Fire ladders; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Finance and Management, Fleet Management Division in that this ordinance should be authorized to provide for the credit from Sutphen, thereby preserving the public health, peace, property, safety and welfare; now, therefore:
BE IT ORDAINED BY THE CITY OF COLUMBUS:
Section 1. That the Director of Finance and Management is authorized to accept the service credit from Sutphen Corporation for three Fire ladders totaling $73, 000.00.
Section 2. The amount of service credit is $19,000.00 each for Ladders 33 & 34 and $35,000.00 for Ladder 14.
Section 3. That the provisions of Chapter 329.30 are hereby waived.
Section 4. 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 or ten days after passage if the Mayor neither approves nor vetoes the same.