Explanation
BACKGROUND:
This legislation is to authorize the purchase of three (3) Compressed Natural Gas (CNG) Automated Side Loader and four (4) Front End Loaders for the Public Service Department, Refuse Collection Division as part of the Congestion Mitigation and Air Quality (CMAQ) grant. These units will replace older ones which are beyond their useful service life. The Public Service Department, Refuse Collection Division is responsible for mechanized refuse collection throughout the City of Columbus. To accomplish this mission, the Division requires these trucks to replace older units that are beyond their useful service life.
The CMAQ grant was awarded to the Fleet Management Division, from the Ohio Department of Transportation, sponsored by the Mid-Ohio Regional Planning Commission (MORPC). The goal of the project is to significantly reduce emissions from heavy-duty diesel vehicles. Ordinance 1178-2008 was passed on July 17, 2008 authorizing the acceptance and appropriation of this grant. Three interrelated projects are part of the grant: emission-reduction retrofit equipment purchases, anti-idling equipment purchases and CNG vehicle purchases.
CNG vehicles produce significantly lower amounts of harmful emissions such as nitrogen oxides, particulate matter and toxic and carcinogenic pollutants. Natural gas is a domestically available, inherently clean-burning fuel. Using compressed natural gas as vehicle fuel increases energy security by reducing our dependence on foreign oil and improves public health and the environment. Currently, CNG is also significantly lower in cost than either gasoline or diesel. The City of Columbus has paid an average of $2.77 per gallon year to date in 2010 for diesel fuel. CNG is currently retailing in Columbus for $1.50 per gge (gasoline gallon equivalent), a $1.27 per gallon or 46% savings in fuel cost.
The purchase orders will be established with Columbus Peterbilt/ESEC Corporation and McNeilus Truck & Manufacturing to purchase three (3) automated side loaders and four (4) front end loaders respectively for the Division of Refuse based on pending universal term contracts. The Refuse Collection Division is responsible for mechanized refuse collection throughout the City of Columbus.
Bid Information: a universal term contract is pending for Columbus Peterbilt and McNeilus.
Contract Compliance No.: Columbus Peterbilt 34-1285858 expires 9/9/2010
Contract Compliance No.: McNeilus Truck 41-1314526 expires 9/14/2011
Emergency Designation: Emergency legislation is requested so that the purchase orders can be issued as soon as possible, thereby ensuring that deadlines of the CMAQ grant are met.
FISCAL IMPACT: Funding for the base trucks and 20% of the CNG upgrade will be funded through the 2010 Capital Improvements Budget in the Refuse Collection Bond Fund. However, bonds have yet to be sold for the project, necessitating a certification of $1,712,492.00 against the Special Income Tax Fund. Of this, $1,659,271.00, ($768,387.00 Automated Side and $890,884.00 Front End) Loaders is for the base cost. An additional amount of $266,104.00, ($105,000.00 ASL and $161,104.00 Front End) loaders is necessary for the upgrade to CNG. Of this, 20% will be transferred from the Refuse Collection Bond Fund to the CMAQ Grant fund. Upon sale of the bonds, this will be reimbursed. The remaining $212,883.00, representing 80% of the cost of the CNG upgrade, will be funded by the CMAQ grant, from funds from the State Department of Transportation.
Title
To authorize the Finance and Management Director to establish purchase orders with McNeilus Truck and Manufacturing and Columbus Peterbilt/ESEC Corporation for the purchase of mechanized refuse collection vehicles for the Division of Refuse Collection from pending universal term contracts; to authorize and direct the City Auditor to transfer $1,712,492.00 from the Special Income Tax Fund to the Refuse Collection Bond Fund, to authorize and direct the City Auditor to transfer $53,221.00 from the Refuse Collection Bond Fund to the CMAQ grant fund; to authorize the City Auditor to appropriate $1,659,271.00 within the Refuse Collection Bond Fund and $266,104.00 to the CMAQ grant fund; and to authorize the expenditure of $1,659,271.00 from the Refuse Collection Bond Fund and $266,104.00 from the CMAQ grant; and to declare an emergency. ($1,925,375.00)
Body
WHEREAS, a universal term contract with Columbus Peterbilt/ESEC Corporation is pending; and
WHEREAS, a universal term contract with McNeilus Truck and Manufacturing is pending; and
WHEREAS, there is a need to replace mechanized refuse collection vehicles for the Division of Refuse to maintain their ability to service the City of Columbus; 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 aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,712,492.00; 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 Department of Public Service, Division of Refuse Collection, , in that it is immediately necessary to issue a purchase order for mechanized refuse collection vehicles so that CMAQ grant deadlines are not missed, thereby preserving the public health, peace, property, safety, 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 issue a purchase order with Columbus Peterbilt/ESEC Corporation for three (3) automated side loader mechanized refuse collection vehicles for the Division of Refuse, Department of Public Service, based on a pending universal term contract with Columbus Peterbilt/ESEC.
SECTION 2. That the Finance and Management Director be and is hereby authorized to issue a purchase order with McNeilus Truck and Manufacturing for four (4) front end loader mechanized refuse collection vehicles for the Division of Refuse, Department of Public Service, based on a pending universal term contract with McNeilus Truck and Manufacturing.
SECTION 3. That the sum of $1,712,492.00 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, 2010 to the City Auditor, Department 22-01, Object Level One 10, OCA code 902023, Object Level Three 5502.
SECTION 4. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 2 to the Refuse Collection Bond Fund, Fund 703 as follows:
Dept/Division: 59-02 59-02
Fund Number: 703 703
Project Number: 520001-100003 520001-100003
OCA Code: 730103 730103
Object Level One: 06 10
Object Level Three: 6652 5501
Amount $768,387.00 $21,000.00
Dept/Division: 59-02 59-02
Fund Number: 703 703
Project Number: 520001-100004 520001-100004
OCA Code: 730104 730104
Object Level One: 06 10
Object Level Three: 6652 5501
Amount: $890,884.00 $32,221.00
SECTION 5. That the Transfer of monies between the following funds be authorized as follows:
Transfer From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
703 / 520001-100003 /Mechanized Collection Equipment / 10-5501 / 730103 / $21,000.00
703 / 520001-100004/Mechanized Collection Equipment / 10-5501 / 730104 / $32,221.00
Transfer to:
Fund / Grant / Grant Name / O.L. 01-03 Codes / OCA / Amount
220 /458086 / CMAQ Improvement Program/80/0886 / 458086 / $53,221.00
SECTION 6. That the sum of $266,104.00 be and hereby is appropriated from the unappropriated balance of Fund 220, General Government Grant Fund, 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, 2010 to Dept-Div. 45-05, the Division of Fleet Management as follows:
Fund / Grant / Grant Name / O.L. 01-03 Codes / OCA / Amount
220 /458086/CMAQ Improvement Program/ 06-6652 / 458086 / $266,104.00
SECTION 7. That the expenditure of $768,387.00 or so much thereof as may be needed, is hereby authorized from the Refuse Collection Bond Fund, Dept/Division: 59-02, Fund 703, OCA 730103, project number 520001-100003 Automated Side Loaders, Object Level 01:06, Object Level 03: 6652.
SECTION 8. That the expenditure of $890,884.00 or so much thereof as may be needed, is hereby authorized from the Refuse Collection Bond Fund, Fund 703, Dept/Division:59-02, OCA 730104, project number 520001-100004 Front Box Loaders, Object Level 01:06, Object Level 03: 6652.
SECTION 9. That the expenditure of $266,104.00 or so much thereof as may be needed, is hereby authorized from the Dept/Division: 45-05, CMAQ Improvement Program grant 458086, Fund 220, OCA 458086, Object Level 01:06, Object Level 03: 6652.
SECTION 10. That upon obtaining other funds for the purchase of a compressed natural gas automated side loaders and front end loaders 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 2.
SECTION 11. 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 or contract modification associated with the expenditure of funds transferred in Section 2, above.
SECTION 12. 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 $1,712,492.00 (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 the 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 13. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 14. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 15. 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.