Explanation
BACKGROUND: This legislation authorizes the Director of Finance and Management to establish a purchase order for Wire and Cable required by the Division of Power and Water to replenish stock used for customer development. Over the past two years there have been significant price increases due to escalating metals prices. During this same period there have been budget constraints that prevented the division from purchasing the quantities of Wire and Cable needed to maintain its inventory. The division's stock of Wire and Cable has been depleted to its lowest levels due to new customers, accidental cable cut replacements, and upgrading old cable to new within the distribution system. Adequate supplies are critical for the daily operation and maintenance of the electricity distribution and street lighting systems and for repairs as may be necessary due to storm damages or other emergencies.
The Wire and Cable will be obtained in accordance with the terms and conditions of the universal term contract FL003534 with Consolidated Electrical Distributors, Inc.
Their contract compliance number, 952563864, expires February 29, 2008.
Emergency action is requested so that the inventory of Wire and Cable may be replenished to safe levels as soon as possible to meet the daily operational needs of the division and to ensure that adequate materials are available for repairs as may be needed in emergency situations thus avoiding prolonged power outages.
FISCAL IMPACT: $105,000 was budgeted in the Electricity Operating Fund for the purchase of Wire and Cable in 2007. In addition, $800,000 was budgeted for materials and equipment as may be necessary for customer development installations. Since much of the division's Wire and Cable inventory has been depleted by using it for new customers, it is requested that this budget authority be used to replenish the inventory. The division's cash has improved after the most recent rate changes, therefore, there is available cash for this purchase. $129,227 was spent in 2005 and $47,539.17 was spent in 2006 for Wire and Cable.
Title
To authorize the Director of Finance and Management to establish a blanket purchase order to purchase Wire and Cable for the Division of Power and Water, in accordance with the terms and conditions of the universal term contract with Consolidated Electrical Distributors, Inc.; to authorize the expenditure of $500,000.00 from the Electricity Operating Fund; and to declare an emergency. ($500,000.00)
Body
WHEREAS, the Division of Power and Water requires Wire and Cable to replenish stock used for customer development; and
WHEREAS, the Purchasing Office has established a universal term contract for the option to obtain Wire and Cable with Consolidated Electrical Distributors, Inc., based upon the bids received and opened on March 8, 2007 (SA002324); and
WHEREAS, the purchase of wire and cable is immediately necessary to meet the daily and emergency needs of the Division of Power and Water; 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 wire and cable 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 Director of Finance and Management be and is hereby authorized to enter into a blanket purchase order, in the amount of $500,000.00, for the purchase of wire and cable for the Division of Power and Water, in accordance with the terms and conditions of the universal term contract FL003534 with Consolidated Electrical Distributors.
SECTION 2. That to pay the cost of the aforesaid purchase order, the expenditure of $500,000.00, or so much thereof as may be needed, is hereby authorized from the Division of Power and Water, Division No. 60-07, Electricity Operating Fund No. 550, OCA Code 606723, Object Level Three 6621.
SECTION 3. 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.