Explanation
1. BACKGROUND
The Division of Refuse Collection utilizes Front Box Loading Refuse Trucks in city-wide residential trash pick-up. The Department of Public Service and Fleet Management recognize the need to replace old trucks beyond their useful service lives. The City will establish a one-time contract for the purchase of 6 Front Box Loading Refuse Trucks. This purchase will consist of 4 diesel trucks and 2 with the Compressed Natural Gas (CNG) Option. The terms of the proposed contracts are from the date of execution by the City up to and including the manufacturer's build out date. The Purchasing Office opened formal bids on February 23, 2012
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation SA004254). Bid specifications included options for diesel engines, compressed natural gas (CNG) engines, and Webasto Heaters. One hundred and one (101) vendors were notified of this solicitation; five (5) majority bids were received. The bids from R&R Truck Sales were deemed non-responsive as the vendor failed to meet requirements.
The Department of Public Service recommends award of the contract to the lowest, responsive, responsible and best bidder:
Vendor: Columbus Peterbilt
Unit Cost Diesel Truck: $234,415.00
Unit Cost CNG Truck: $274,032.00
4 Inspection Visits: $2,000.00
Total Cost for 4 Diesel Trucks, 2 CNG Trucks and 4 Inspection Visits: $1,487,724.00
Vendor: McNeilus
Unit Cost Diesel Truck: $238,693.00
Unit Cost CNG Truck: $276,267.00
4 Inspection Visits: $0.00
Total Cost for 4 Diesel Trucks, 2 CNG Trucks and 4 Inspection Visits: $1,507,306.00
Vendor: FYDA
Unit Cost Diesel Truck: $252,511.00
Unit Cost CNG Truck: $278,426.00
4 Inspection Visits: $2,500.00
Total Cost for 4 Diesel Trucks, 2 CNG Trucks and 4 Inspection Visits: $1,576,896.00
Total estimated expenditure: $1,487,724.00
As part of the contract cost the City will send representatives to the manufacturing facility for 4 inspections of the facility. The amount of this expense is $2,000.00
Award is to be made to Columbus Peterbilt as the lowest, responsive, and best bid.
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings for Recovery Database.
2. CONTRACT COMPLIANCE:
The contract compliance number for Columbus Peterbilt is: 34-1285858 001 and expires 7/13/2012.
3. EMERGENCY DESIGNATION
Emergency Action is requested so that a purchase order can be issued as soon as possible, thereby ensuring that the Division of Refuse has the equipment to pick up the daily waste stream of the City of Columbus residents.
4. FISCAL IMPACT
This equipment is budgeted within the 2012 Capital Improvement Budget. This expense can be accommodated by appropriating the funds needed, $1,487,724.00 within the Special Income Tax Fund and transferring those funds to the Refuse G.O. Bonds Fund. Upon sale of bonds, this will be reimbursed.
Title
To authorize the Finance & Management Director to enter into contract with Columbus Peterbilt for the purchase of 4 Front Box Loading Refuse Trucks with Diesel Engines and 2 Front Box Loading Refuse Trucks with Compressed Natural Gas (CNG) Option and the cost of visits to and inspection of the Manufacturing facility; to authorize the City Auditor to transfer $1,487,724.00 from the Special Income Tax Fund to the Refuse G.O. Bonds Fund; to authorize the City Auditor to appropriate $1,487,724.00 within the Refuse G.O. Bonds Fund; to authorize the expenditure of up to $1,487,724.00 from the Refuse G.O. Bonds Fund; and to declare an emergency. ($1,487,724.00)
Body
WHEREAS, there is a need to replace front box loading refuse collection trucks for the Department of Public Service, Division of Refuse Collection; and
WHEREAS, the Purchasing Office advertised and solicited formal bids and on March 13, 2012, the Department of Public Service selected the lowest, responsive, responsible and best bid; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,487,724.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the "Project");and
WHEREAS, an emergency exists in the usual daily operation of the Division of Refuse Collection in that it is immediately necessary to enter into contract for an option to purchase Front Box Loading Refuse Trucks with Diesel Engine and Front Box Loading Refuse Trucks with Compressed Natural Gas (CNG) Option, 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 be and is hereby authorized to enter into a one-time agreement with Columbus Peterbilt, 6240 Enterprise Pkwy, Grove City, OH 43123, for the purchase of 4 Front Box Loading Refuse Trucks with Diesel Engines and 2 Front Box Loading Refuse Trucks with Compressed Natural Gas (CNG) Option and cost of City personnel to visit and inspect the manufacturing facility, for a total cost of up to $1,487,724.00.
SECTION 2. The sum of up to $1,487,724.00 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, 2012 to the City Auditor, Department 22-01, Object Level One 10, OCA code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 2 to the Refuse G.O. Bonds Fund, Fund 703 as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA code / #/Current/Change/Amended
703 / 520001-100004 / Mechanized Collection Equipment - Front Box Loaders / 06-6600 / 730104 / $1,487,724.00
SECTION 4. That the monies appropriated in the foregoing Section 3 shall be paid upon order of the Director of Public Service 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 5. That upon obtaining other funds for this project for the Department of Public Service, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3.
SECTION 6. 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(s) or contract modification(s) associated with the expenditure of the funds transferred under Section 3 above.
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $1,487,724.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated
SECTION 9. That to pay the cost of the aforementioned purchase order, the expenditure of up to $1,487,724.00 or so much thereof as may be needed be and hereby authorized for the Department of Public Service, Division of Refuse Collection, 59-02, from the Refuse G.O. Bond Fund, as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
703 / 520001-100004 / Mechanized Collection Equipment - Front Box Loaders / 06-6651 / 730104/ $1,487,724.00
SECTION 10. 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 11. 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 10 days after its passage if the Mayor neither approves nor vetoes the same.