Explanation
Background: Ordinance 0545-2004 passed by City Council April 19, 2004, authorized the purchase of traffic signposts, traffic signal controllers, and school flashers for the Transportation Division per the terms and conditions of citywide universal term contracts with five vendors for $187,904.00. A purchase order was established with Steven Steel Company for two hundred (200) 14 foot 2.5 pound signposts for $7,800.00.
Steel pricing is volatile due to marketplace shortages. The universal term contract for traffic signposts contained an escalator clause that allowed the vendor to petition the Purchasing Office for mid-contract price increases. Unbeknownst to the Transportation Division, this escalator was exercised and a price increase approved by the Purchasing Office subsequent to passage of Ordinance 0545-2004 but before the division ordered the signposts. Subsequent to delivery of the signposts, Steven Steel invoiced the division $12,406.00, an increase of $4,606.00 from the original purchase order amount. This ordinance authorizes the Finance Director to increase purchase order #FL001202 by $4,606.00.
Fiscal Impact: The Transportation Division budgeted $755,082 in the 2004 Capital Improvements Budget for Sign Upgrading/Street Name Sign projects. Over a half million dollars remains from the original allocation. This ordinance authorizes an additional $4,606.00 for steel price increases for the purchase of signposts. Therefore, funds for this purchase order increase are available within the 2004 Transportation Division Capital Improvements Budget in the Sign Upgrading/Street Name Sign project in the 1995, 1999 Voted Streets and Highways Fund.
Emergency action is requested to clear this outstanding amount due the vendor as soon as possible.
Title
To authorize the Finance Director to modify and increase an existing purchase order with Steven Steel Company for the purchase of steel traffic signposts for the Transportation Division; to authorize the expenditure of $4,606.00 from the 1995, 1999 Voted Streets and Highways Fund, and to declare an emergency. ($4,606.00)
Body
WHEREAS, Ordinance 0545-2004 passed by City Council April 19, 2004, authorized the purchase of traffic signposts from Steven Steel Company for the Transportation Division; and
WHEREAS, the universal term contract for signposts contained an escalator clause that allowed the vendor to petition the Purchasing Office for a mid-contract price increase; and
WHEREAS, this escalator was exercised and a price increase approved; and
WHEREAS, subsequent to delivery of the signposts, Steven Steel Company invoiced the division $12,406.00, an increase of $4,606.00 from the original purchase order amount; and
WHEREAS, this ordinance authorizes the Finance Director to increase purchase order #FL001202 by $4,606.00; and
WHEREAS, an emergency exists in the usual daily operation of the Transportation Division, Public Service Department, in that it is immediately necessary to increase said purchase order to clear this outstanding amount due the vendor as soon as possible, 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 Director be and hereby is authorized to modify and increase purchase order #FL001202 with Steven Steel Company for the purchase of steel traffic signposts for the Transportation Division by $4,606.00.
SECTION 2. That the expenditure of $4,606.00, or so much thereof as may be needed, be and hereby is authorized from Fund 704, the 1995, 1999 Voted Streets and Highways Fund, Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6622, OCA Code 644385 and Project 540008 for this purpose.
SECTION 3. 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.