Explanation
BACKGROUND: This legislation authorizes the transfer of budget authority between object levels within the Electricity Operating Fund and waives competitive bidding procedures of the Columbus City Codes to authorize the Director of Finance and Management to purchase transformers for the Division of Power and Water. Because of rapidly increasing copper and steel costs, vendors have not been willing to hold firm prices for transformers. Ord. 1295-2007 was passed September, 2007 to authorize the Director of Finance and Management to solicit formal bids and to enter into contracts for the purchase of transformers and authorized an expenditure of $550,000 from the Electricity Operating Fund. The solicitation, SA002590, resulted in four bids received, one from Van Tran Industries, a master bid from WESCO and two alternate bids from WESCO. The prices in the alternate bids from WESCO were based on deadlines for placing orders. Van Tran's bid met all specifications, however, they only bid on items 14 through 27. Because the prices were much higher than anticipated, awards were recommended for only the most critical items and some quantities were reduced for a total award to Van Tran for eleven (11) items in the amount of $526,225.00.
No responsive bids were received for items 1 through 13. WESCO did submit bids for these items, however, they submitted additional terms and conditions rendering their bid non-responsive. Due to the aforementioned escalating prices and the critical need for transformers, it is requested that provisions of competitive bidding be waived so that the Director of Finance and Management may accept the Alternate One bid from WESCO for items 1 through 13. Acceptable terms and conditions have been negotiated.
WESCO's contract compliance number is 251723345, expires 3/14/2009.
Emergency action is requested due to the need to immediately enter into a contract as soon as possible in order that an order may be placed prior to the date stated in the alternate bid. It is also to the City's advantage to order immediately due to the long lead-time for delivery and the critical need for transformers necessary to maintain the reliability of the city's electrical distribution system and for new customer installations.
FISCAL IMPACT: $115,000 was budgeted for the purchase of transformers in the 2007 Electricity Operating Fund budget. A surplus in Object Level One: 01 is primarily due to a delay in hiring new employees that were budgeted in 2007. A deficit in Object Level One: 06, Capital Outlay, is due to the need replenish depleted stock of capital commodities required by the Division of Power and Water for its daily operations and new customer installations. This legislation will align the budget authority with projected expenditures.
$112,352 was spent in 2005 and $453,118 was spent in 2006 from the Electricity Operating Fund for the purchase of transformers.
Title
To authorize the transfer of budget authority between object levels within the Electricity Operating Fund; to waive the competitive bidding provisions of Columbus City Codes; to authorize the Finance and Management Director to enter into contract with WESCO for the purchase of transformers for the Division of Power and Water; to authorize the expenditure of $198,414.00 from the Electricity Operating Fund; and to declare an emergency. ($198,414.00)
Body
WHEREAS, it is necessary to transfer budget authority within the Electricity Operating Fund to align budget authority with projected expenditures; and
WHEREAS, the Department of Public Utilities, Division of Power and Water, has an immediate need to purchase transformers to maintain the reliability of the city's electrical distribution system and for new customer installations; and
WHEREAS, the City's formal solicitation was unsuccessful in obtaining responsive bids for pole mount transformers required by the Division of Power and Water;
WHEREAS, it is necessary to waive the competitive bidding provisions of the Columbus City Codes, 1959, to accept a non-responsive bid from WESCO in order to meet the immediate needs of the Division of Power and Water; and
WHEREAS, emergency action is necessary to meet the division's critical need for transformers; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water, in that it is necessary to purchase transformers for the immediate preservation of 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 is hereby authorized and directed to transfer appropriations within the Electricity Operating Fund 550, Dept./Div. No. 60-07, as follows:
FROM
Object Level One: 01
OCA: 606723
Object Level 3: 1101
Amount: $198,414
TO:
Object Level One: 06
OCA: 606723
Object Level Three: 6621
Amount: $198,414
SECTION 2. That the competitive bidding provisions of the Columbus City Codes, 1959, are hereby waived for the purchase of transformers for the Division of Power and Water.
SECTION 3. That the Finance and Management Director be and is hereby authorized to enter into a contract for the purchase transformers for the Division of Power and Water based upon the Alternate One bid for items 1 through 13 from WESCO (SA002590).
SECTION 4. That to pay the cost of the aforesaid purchase, the expenditure of $198,414.00, or so much thereof as may be needed, is hereby authorized from the Electricity Operating Fund 550, Division Number 60-07, OCA Code 606723, Object Level Three 6621.
SECTION 5. 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.