Explanation
The Transportation Division is responsible for snow and ice control and removal on the City's roadway system. Rock salt is used extensively in this operation. Formal competitive bids were solicited and received and the Purchasing Office is establishing a citywide universal term contract (UTC) with Cargill, Incorporated - Deicing Technology, contract compliance number 41-0177680 (expires July 31, 2009) at a price of $39.85/ton (dumped) and $43.00/ton (piled). The price is allowed to escalate under the terms of this contract with requests for increases being subject to approval by the City.
It is necessary that the Transportation Division purchase rock salt for 2006 - 2007 winter season. This ordinance authorizes the Finance and Management Director to establish a purchase order for the purchase of rock salt for the Transportation Division consistent with the terms and conditions of the to be established citywide term contract in the amount of $800,000.00.
Fiscal Impact: This expense was budgeted in the Transportation Division's 2006 Municipal Motor Vehicle License Tax Fund in the amount of $1,000,000.00. An additional $200,000.00 is needed to pay American Electric Power Company billings due to their in-year rate increase and the Division wanting to assure that adequate funds are available to pay January and February, 2007, electricity billings for traffic signals prior to 2007 budget passage. Delinquent payment of these electricity accounts causes interest charges to be incurred. This ordinance authorizes the salt expenditure in the amount of $800,000.00 and transfers $200,000.00 between expenditure categories within the Municipal Motor Vehicle License Tax Fund.
The 2005 salt purchase authorization totaled $1,486,055.00 ($1,000,000.00 by Ordinance 0047-2005 passed by City Council January 25, 2005; $288,000.00 by Ordinance 1221-2005 passed July 25, 2005; and $198,055.00 by Ordinance 1508-2005 passed November 7, 2005).
Emergency action is requested to assure an uninterrupted supply of this critical commodity.
Title
To authorize the City Auditor to transfer $200,000.00 between expenditure categories with the Municipal Motor Vehicle License Tax Fund in order to pay American Electric Power billings due to their in-year rate increase and to ensure the payment of electricity invoices until the 2007 operating budget is adopted; to authorize the Finance and Management Director to establish a purchase order with Cargill, Incorporated - Deicing Technology, for the purchase of rock salt in accordance with the terms and conditions of a citywide term contract to be established for the Transportation Division; to authorize the expenditure of $800,000.00 or so much thereof as may be needed from the Municipal Motor Vehicle License Tax Fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, the Transportation Division is responsible for snow and ice control and removal on the City's roadway system; and
WHEREAS, rock salt is used in this operation; and
WHEREAS, the Purchasing Office is establishing a citywide universal term contract with Cargill, Incorporated - Deicing Technology, for the purchase of rock salt as a result of the formal competitive bidding process; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Transportation Division, in that it is immediately necessary to authorize the Finance and Management Director to establish a purchase order for the purchase of rock salt consistent with the terms and conditions of this citywide contract in order to assure an uninterrupted supply of this critical commodity, 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 Auditor be and hereby is authorized to transfer $200,000.00 between Object Level One Codes within Department No. 59-09, the Transportation Division, 2006 appropriation authority within Fund 266, the Municipal Motor Vehicle License Tax Fund, as follows:
TRANSFER FROM
Object Level One/Object Level Three Codes / OCA Code
02/2192 / 599115
Total Transfer From: $200,000.00
TRANSFER TO
Object Level One/Object Level Three Codes / OCA Code
03/3311 / 599115
Total Transfer To: $200,000.00
SECTION 2. That the Finance and Management Director be and hereby is authorized to establish a purchase order with Cargill, Incorporated - Deicing Technology, 24950 Country Club Boulevard, Suite 450, North Olmstead, Ohio 44070 for $800,000.00 for the purchase of rock salt for the Transportation Division consistent with the terms and conditions of the existing citywide term contract for this purpose.
SECTION 3. That the expenditure of $800,000.00, or so much thereof as may be needed, be and hereby is authorized from Fund 266, the Municipal Motor Vehicle License Tax Fund, Department No. 59-09, Transportation Division, Object Level One Code 02, Object Level Three Code 2192 and OCA Code 599115 for the purchase of rock salt.
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.