Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to modify and increase an existing encumbrance established per Ordinance #1823-2010 passed January 24, 2011 to pay 2011 refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Division of Refuse Collection. The original encumbrance was established in the amount of $14,605,465.00 based on estimated refuse tonnage and a $7 per ton credit. The actual and projected amount is very close to exceeding the estimated amount because the City's lease credit has been exhausted. Actual annual tipping fees totaled $13,049,098.46 and $13,312,244.86 for 2009 and 2010, respectively. Through October, actual 2011 expenditures total $11,107,707.49. There is some concern that the existing $3,497,797.51encumbrance balance will prove insufficient to pay the entire November, December, and January invoices. Since partial payments are unacceptable and delayed payments incur an interest penalty, it is prudent to prepare for this possibility by increasing the amount of the encumbrance by $500,000.00.
2. BID WAIVER
Formal competitive bidding requirements must be waived because refuse disposal services other than those provided by SWACO are available in the marketplace; however, the City is contractually obligated to tip at SWACO facilities. Tipping fee rates are determined by SWACO's established rate setting process. The city is represented on SWACO's board of directors.
3. FISCAL IMPACT
Additional funding for tipping fees is available within the Special Income Tax Fund. This ordinance appropriates these funds as necessary.
4. EMERGENCY DESIGNATION
Emergency action is requested to provide for full payment of all liabilities and avoid payment delays to the Solid Waste Authority of Central Ohio (SWACO).
Title
To appropriate $500,000.00 within the Special Income Tax Fund; to authorize the Director of Public Service to modify and increase an existing encumbrance established to pay 2011 refuse tipping fees to the Solid Waste Authority of Central Ohio for the Division of Refuse Collection pursuant to an existing lease agreement by $500,000.00; to authorize the expenditure of $500,000.00 or so much thereof as may be necessary from the Special Income Tax Fund; to waive the competitive bidding requirements of the City Code and to declare an emergency. ($500,000.00)
Body
WHEREAS, the Refuse Collection Division must encumber additional funds to continue refuse tipping at the Solid Waste Authority of Central Ohio's facilities pursuant to the lease agreement between the City and the Authority for those facilities; and
WHEREAS, these funds must be appropriated within the Special Income Tax Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Refuse Collection Division, Public Service Department, in that it is immediately necessary to modify and increase an existing encumbering document with the Solid Waste Authority of Central Ohio for refuse disposal, 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 sum of $500,000.00 be and hereby is 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 Department No. 59-02, Department of Public Service, Division of Refuse Collection, Object Level One Code 03, Object Level Three Code 3389 and OCA Code 594341.
SECTION 2. That the monies appropriated in Section 1 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 3. That the Director of Public Service be and hereby is authorized to modify and increase by $500,000.00 the existing encumbrance established with the Solid Waste Authority of Central Ohio for refuse tipping services for the Division of Refuse Collection at the various rate charges assigned to each tipping location and any legal subsequently adjusted rates.
SECTION 4. That the expenditure of $500,000.00.00 or so much thereof as may be needed be and hereby is authorized from the Special Income Tax Fund, Fund 430, Department No. 59-02, Department of Public Service, Division of Refuse Collection , Object Level One Code 03, Object Level Three Code 3389 and OCA Code 594341.
SECTION 5. That in accordance with Section 329.27 of the Columbus City Code, City Council has determined that it is in the best interest of the City of Columbus that Section 329.06 relating to formal competitive bidding requirements be waived and hereby waives said section.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 7. 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.