Explanation
1. BACKGROUND
The Division of Planning and Operations is responsible for street sweeping along the City's roadway system. To accomplish this mission the Division requires six 3-Wheel Sweepers. These sweepers will replace older units which are beyond their useful service life and will provide for a more reliable fleet to carry out services provided by the Division.
In order to effectively sweep older neighborhoods and the City's downtown the Division requires a sweeper that is capable of making extremely tight turns. Additionally, the Division requires a sweeper capable of unloading its sweepings directly into the bed of a dump truck. The sole sweeper capable of performing both these operations is the 3-wheel Elgin Pelican sweeper offered exclusively in Ohio by Jack Doheny Supplies Ohio, Inc. This was verified in conversations held with representatives of the American Public Works Association and the North American Power Sweeping Association.
The price for the sweepers was negotiated with Jack Doheny Supplies Ohio, Inc. The price for a single unit is $163,601.16 and it is 1% less than the price available off of the state contract STS235Y.
2. CONTRACT COMPLIANCE
Jack Doheny Supplies Ohio, Inc., contract compliance number is 38-3148955 and expires 08/17/12.
3. SOLE SOURCE
Conversations were held with representatives of the American Public Works Association and the North American Power Sweeping Association verifying Elgin Sweepers is the sole manufacturer of a three-wheel, forward high dump, street sweeper. The manufacturer, Elgin, has confirmed that Jack Doheny is the sole supplier for Ohio and Indiana. Due to this, this ordinance is being submitted in accordance with the provisions of Sole Source procurement of the Columbus City Code Section 329.07.
4. FISCAL IMPACT
Funding authority for this purchase is budgeted within the 2011 Capital Improvement Budget. This expense can be accommodated by appropriating and transferring funds needed in the amount of $981,606.96 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $981,606.96 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed.
5. EMERGENCY DESIGNATION
This legislation is requested to be heard as an emergency to make this equipment available at the earliest possible time for use by the Division of Planning and Operations.
Title
To authorize the Finance and Management Director to enter into a contract for the purchase of six (6) 3-Wheel Sweepers from Jack Doheny Supplies Ohio, Inc. according to provisions of Sole Source procurement of the Columbus City Code Section 329.07; to authorize and direct the City Auditor to transfer $981,606.96 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $981,606.96 within the Streets and Highways G.O. Bonds Fund; to authorize the expenditure of $981,606.96 from the Streets and Highways G.O. Bonds Fund; and to declare an emergency. ($981,606.96)
Body
WHEREAS, the Division of Planning and Operations is responsible for sweeping along the City's roadway system; and
WHEREAS, the Division of Planning and Operations is in need of six (6) 3-Wheel Sweepers; and
WHEREAS, Jack Doheny Supplies Ohio, Inc., is the sole source supplier for this product; and
WHEREAS, the purchase of this equipment will be in accordance with the provisions of the sole source procurement of the Columbus City Code, Section 329.07; and
WHEREAS, funds are budgeted in the 2011 Capital Improvement Budget for this expense; 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 aggregate principal amount of obligations which the city will issue to finance this project is presently expected not to exceed $981,606.96; 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 Division of Planning and Design in that the funding should be authorized immediately to provide this equipment at the earliest possible time to replace aging equipment, 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 Director of Finance and Management is hereby authorized to enter into a contract with Jack Doheny Supplies Ohio, Inc., 1860 Summit Commerce Park, Twinsburg, OH 44087, for the purchase of six (6) 3-Wheel Sweeper in accordance with the specifications on file in the Purchasing Office.
SECTION 2. That funding for this legislation is based on a quote dated May 10, 2011 submitted by Jack Doheny Supplies Ohio, Inc, and the quoted price is on file with the Purchasing Office.
SECTION 3. That this purchase will be made in accordance with the sole source provisions of the Columbus City Code, Section 329.07.
SECTION 4. The sum of $981,606.96 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, 2011 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 5. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, No. 704, at such time as it is deemed necessary by the City Auditor and to expend said funds or so much thereof as may be necessary.
SECTION 6. That $981,606.96 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-11, Division of Planning and Operations as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530020-100000 / Street Equipment / 06-6600 / 591246 / $981,606.96
SECTION 7. That the monies appropriated in the foregoing Section 6 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 8. That upon obtaining other funds for this capital improvement, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 5 above.
SECTION 9. 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 5, above.
SECTION 10. 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 $981,606.96 (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 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 11. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 12. That the sum of $981,606.96 or so much thereof as may be needed is hereby authorized to be expended from the Streets and Highways G.O. Bonds Fund, No. 704, Dept./Div. 59-11 as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530020-100000 / Street Equipment / 06-6651 / 591246 / $981,606.96
SECTION 13. 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.