Explanation
BACKGROUND: This legislation authorizes the Finance & Management Director to issue purchase orders for transformers for the Division of Power and Water using an informal bid process and waives the competitive bidding provisions of the Columbus City Code. The Purchasing Office opened formal bids October 20, 2005 and established universal term contracts for the purchase of transformers. However, due to rapidly increasing metals costs, vendors have been unable to honor the UTC prices.
Due to the immediate need for replacement transformers to maintain the reliability of the city's electrical distribution system and for new customer installations, an informal bid for transformers was solicited. The Purchasing Office opened informal bids on November 16, 2006 and two bids were received. It is recommended that Items 2, 3, 4, 5, 6 and 7 be awarded to the only bidder for these items, Wesco Aurora Utility, in the amount of $114,672. An award is recommended to Van Tran Industries, in the amount of $164,974.00, for Items 10, 11, 15, 16, 17, 18 and 19 as the only bidder for these items.
Contract Compliance: Wesco Aurora Utility - 251723345 expires - 1/15/2007 Van Tran Industries - 742568917 expires - 8/27/2007
Emergency action is requested in order that the purchase orders may be established prior to the end of 2006 to meet the Division of Electricity's immediate need for replacement transformers.
FISCAL IMPACT: $80,000 was budgeted for the purchase of transformers in the 2006 Electricity Operating Budget. In addition, $900,000 was budgeted for equipment as may be needed for customer installations. $112,352 was spent in 2005 and $179,484 was spent in 2004 from Electricity Operating Fund and the Voted Street Lighting and Electricity Distribution Improvements Fund for the purchase of transformers.
Title
To authorize the Finance & Management Director to issue purchase orders for the purchase of transformers for the Division of Power and Water from Wesco Aurora Utility and Van Tran Industries; to waive the competitive bidding provisions of Columbus City Code; to authorize the expenditure of $279,646.00 from the Electricity Operating Fund; and to declare an emergency. ($279,646.00)
Body
WHEREAS, the Department of Public Utilities, Division of Power and Water, has an immediate need to purchase replacement transformers to maintain the reliability of the city's electrical distribution system and for new customer installations; and
WHEREAS, due to rapidly increasing metals costs, the Division of Power and Water has been unable to obtain transformers from existing universal term contracts for transformers; and
WHEREAS, there is insufficient time to obtain formal bids to meet the Division's needs for transformers; and
WHEREAS, it is in the best interest of the City of Columbus to waive the formal competitive bidding provisions of Columbus City Code to purchase transformers based upon an informal competitive bidding process; and
WHEREAS, emergency action is necessary to meet the Division of Power and Water's immediate need for replacement transformers; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water, 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 & Management Director be and is hereby authorized to purchase transformers for the Division of Power and Water based upon informal competitive bids received November 16, 2006, SO024106, as follows:
Wesco Aurora Utility $114,672.00
Van Tran Industries $164,974.00
SECTION 2. Pursuant to Section 329.27 of the Columbus City Codes, 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 $279,646.00 , or so much thereof as may be needed, is hereby authorized from the 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.