Explanation
Background: This ordinance will enable the City of Columbus to maintain a cost effective supply of natural gas to its various facilities.
The City of Columbus has participated in the State of Ohio contract for natural gas since the late 1990s. The State of Ohio has made significant changes in the new contract to begin July 1, 2003. The State of Ohio and the cooperative contractor, FirstEnergy Solutions (status: MAJ, contract compliance #31-1560186) required a signed Memorandum of Understanding on June 24, 2003 in order for the City to continue to participate in the new cooperative contract for natural gas supply. The full details of the new contract were shared with the City during the last week of June. The City received a final copy of the new contract terms on June 23, 2003. With no other ready bid to act on, and to preserve our supply of natural gas at the best possible pricing, the City decided to participate in the State of Ohio cooperative contract for natural gas supply.
On June 23rd 2003, in accordance with the provisions of Section 329.27, Chapter 329, Title 3, Article 3, of the Columbus City Codes, 1959, as amended, the Mayor declared an emergency existed in the City of Columbus and ordered the Director of Finance to take immediate action to enter into an agreement with the State of Ohio. Pursuant to ordinance 1721-2003, passed July 14, 2003, City Council has been notified that the Finance Director entered into the Memorandum of Understanding with the State of Ohio Department of Administrative Services in order to maintain supplies of natural gas to City facilities.
The most significant change in the new natural gas supply contract is in the accounts payables section. Specific, consolidated, electronic payments are required in a limited time frame in order to participate in the cooperative contract. As a joint solution developed by the City Auditor, City Attorney, City Treasurer, City Finance Director, other City department directors, and the Department of Technology, an expeditious centralized accounts payable method has been developed and may be implemented to meet the requirements of the new contract. To initiate the implementation of the expeditious centralized payment, the City Council and Mayor must allow the various City directors to delegate their authority to pay only these natural gas supply bills to a few employees, as designated by the Finance Director.
City Charter Section 84 requires the prior written approval of department heads as well as Council approved appropriations to fund this type of expense before any payments can be made. The City Attorney's Office has advised that City Council approval of this ordinance authorizing directors to delegate their authority to City employees (who may be designated by the Finance Director) for this specific purpose satisfies this section of the Charter.
This ordinance is being submitted as an emergency because, without emergency action our continued supply of natural gas may be interrupted.
Fiscal Impact: The estimated annual expenditure for natural gas supplies for the City of Columbus is $6.5 million. Funding to establish these encumbrances and payments is available in the various department and division appropriations. As required to maintain natural gas supply, the City Auditor is to be authorized to make such transfers or increases as necessary to continue to meet our accounts payable obligations.
Title
To allow City of Columbus department heads to authorize a City employee or employees, to be designated by the Finance Director, to approve encumbrances and process invoices (electronic, facsimile or hard-copy) for payment of natural gas purchases to FirstEnergy Solutions, on behalf of each department head, to authorize the City Auditor to initiate encumbrances, transfer and increase, if necessary, appropriations within any of the various funds of the City to provide for natural gas supplies, and to authorize the expenditures and payment of electronic invoices as approved by the Finance Director's designee(s), to waive the City Code formal competitive bidding requirements, and to declare an emergency.
Body
WHEREAS, the City of Columbus requires natural gas daily for facility operations, and
WHEREAS, the natural gas supply chain is currently best maintained by purchasing natural gas through a purchasing cooperative managed by the State of Ohio, Department of Administrative Services, and
WHEREAS, pursuant to an order by the Mayor, upon declaring an emergency situation existed, the Finance Director entered into the Memorandum of Understanding with the State of Ohio Department of Administrative Services in order to maintain supplies of natural gas to City facilities, and
WHEREAS, this cooperative contract was competitively bid by the State of Ohio Department of Administrative Services but was established outside of the State of Ohio's traditional cooperative purchasing program, therefore the City must waive our own formal competitive bidding Code requirements in order to purchase from the cooperative natural gas supply contract, and
WHEREAS, City Charter Section 84 requires the prior written approval of department heads as well as Council approved appropriations to fund this type of expense before any payments can be made and City Council approval of this ordinance authorizing directors to delegate their authority to City employees (who may be designated by the Finance Director) for this specific purpose satisfies this section of the Charter, and
WHEREAS, specific, consolidated, electronic payments are required in a limited time frame in order to participate in the cooperative contract, and
WHEREAS, to initiate the implementation of the expeditious centralized payment, the City Council and Mayor must allow the various City directors to delegate their authority to pay only these natural gas supply bills to a few employees, as designated by the Finance Director. and
WHEREAS, payments cannot be missed or City facilities may experience shut offs and/or serious financial penalties and therefore it is necessary to enable the City Auditor to ensure that funds for payments of these expenditures can be made expeditiously, and
WHEREAS, an emergency exists in the usual daily operation of the agencies of the City of Columbus in that it is immediately necessary to allow City of Columbus department directors to authorize a City employee or employees, to be designated by the Finance Director, to approve encumbrances and process invoices (electronic, facsimile or hard-copy)for payment of natural gas purchases to FirstEnergy Solutions, on behalf of each department director, to authorize the City Auditor to initiate encumbrances, transfer and increase, if necessary, appropriations within any of the various funds of the City to provide for natural gas supplies, and to authorize the expenditures and payment of electronic invoices as approved by the Finance Director's designee(s) to maintain the City's natural gas supply chain, 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 City of Columbus department heads are hereby allowed to authorize a City employee or employees, to be designated by the Finance Director, to approve encumbrances and process invoices (electronic, facsimile or hard-copy)for payment of natural gas purchases to FirstEnergy Solutions, on behalf of each department director.
SECTION 2. That the City Auditor is hereby authorized and directed to initiate encumbrances, transfer and increase, if necessary, appropriations within any of the various funds of the City to provide for natural gas supplies. and to authorize the expenditures and payment of electronic invoices as approved by the Finance Director's designee(s).
SECTION 3. That encumbering and payment of invoices (electronic, facsimile or hard-copy) for the purchase of natural gas, within the appropriation limits City Council has approved for each department, are hereby authorized as approved by the Finance Director's designee(s), upon delivery of natural gas supply and upon receipt of invoices presented to the City of Columbus.
SECTION 4. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving, and does hereby waive Sections 329.06 (Formal Competitive Bidding) of the Columbus City Code.
SECTION 5. That this ordinance satisfies the requirements of City Charter Section 84 (the prior written approval of department heads as well as Council approved appropriations to fund this type of expense before any payments can be made).
SECTION 6. That for the reason stated in the preamble here to, 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.