Explanation
1. BACKGROUND
This ordinance authorizes the Director of the Department of Public Service to modify and extend rental agreements with Premier Truck Sales and Rental, Inc. in the amount of up to $1,000,000.00 for the rental of refuse collection trucks to be used by the Division of Refuse Collection.
The Division of Refuse Collection (Division) is responsible for providing weekly refuse collection service to the 344,000 residential units within the City of Columbus. It is necessary to immediately rent refuse collection trucks to continue to provide timely refuse collection to the residents of Columbus. This will also allow the Division to be able to collect refuse during the normal work week hours and to avoid routinely scheduling mandatory overtime. The rental of these vehicles is expected to be needed for another year, possibly longer, in order to give time for the trucks that have been on order, and for the trucks that are about to be ordered, to be delivered to the City. An assessment of delivery times of the vehicles on order will be made in the spring of 2024. At that time it may be necessary to rent additional trucks to accommodate further deficiencies in the Division fleet due to the ongoing pandemic related production delays or to turn in some of the rentals pending delivery of vehicles on order.
Searches in the System for Award Management (Federal) and the Findings for Recovery List (State) produced no findings against Premier Truck Sales and Rental.
1.1 Amount of additional funds to be expended: $1,000,000.00
The original contract amount: $492,000.00 (PO354714, Ord. 2788-2022)
The total of Modification No. 1: $1,000,000.00 (This Ordinance)
The contract amount including all mods: $1,492,000.00
1.2 Reasons additional goods/services could not be foreseen:
Prior to the COVID pandemic it took nine to twelve months after placement of order to receive a refuse collection truck. The shutdown of many businesses during the pandemic and supply chain issues have caused long delivery delays for these trucks. The projected delivery date of replacement trucks previously on order has been delayed by many months, and delivery times for new orders are now running eighteen to twenty-four months after receipt of order. The Division is experiencing a shortage of refuse collection trucks due to downtime needed for repairs of an aging fleet and the delays in getting replacement vehicles that have been ordered.
1.3 Reason other procurement processes are not used:
A search was made for companies that rented refuse collection trucks. Two companies were found within Ohio that rented the trucks. Of the two companies, Premier Truck Sales and Rental was the only company that had trucks available for rent at this time. The delay associated with the pandemic in getting delivery of new vehicles has caused a shortage of rental vehicles. Taking the time required to do a formal bidding process could result in these vehicles no longer being available and delays in the collection of refuse.
1.4 How cost of modification was determined:
The cost of this contract modification and extension is consistent with rates that were established in the original contract including increases related to the 2024 model years of the new rentals.
3. CONTRACT COMPLIANCE INFORMATION
Premier Truck Sales and Rental contract compliance number is CC-040372 and expires 12/9/2023.
4. FISCAL IMPACT
Funding for this contract will come from the General Fund, Fund 1000.
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This expenditure is for the rental of refuse trucks. The purchase and rental of specialized equipment is exempt from this program.
6. EMERGENCY DESIGNATION
Emergency action is requested so the rental of refuse trucks can occur at the earliest possible time to ensure refuse continues to be collected in a timely manner.
Title
To authorize the Director of the Department of Public Service to modify and extend rental agreements to rent refuse collection trucks from Premier Truck Sales and Rental, Inc.; to authorize the expenditure of up to $1,000,000.00 from the General Fund to pay for the modification and extension of said rental agreements; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, the Department of Public Service, Division of Refuse Collection, is responsible for providing weekly refuse collection service to the 344,000 residential units within the City of Columbus; and
WHEREAS, the COVID-19 pandemic has caused a delay in the manufacture and delivery of new refuse collection trucks; and
WHEREAS, the Division of Refuse Collection is experiencing a shortage of refuse collection trucks due to downtime needed for repairs of an aging fleet and the delays in getting replacement vehicles that have been ordered; and
WHEREAS, a search was made for companies that rented refuse collection trucks; and
WHEREAS, one company, Premier Truck Sales and Rental, Inc. was found in Ohio that had refuse collection trucks immediately available to rent; and
WHEREAS, delivery delays of new vehicles caused by the pandemic is causing a shortage of refuse trucks available for rent; and
WHEREAS, the purchase and rental of specialized equipment is exempt from the Minority and Woman Owned Business Enterprise & Small Local Business Enterprise Program; and
WHEREAS, rental contracts will need to be modified and extended with Premier Truck Sales and Rental, Inc. for the rental of the refuse collection trucks; and
WHEREAS, funds in the amount of up to $1,000,000.00 will need to be expended to pay for the modification and extension of said rental agreements; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the Director of Public Service to modify and extend rental agreements with Premier Truck Sales and Rental, Inc. to avoid delays in the collection of refuse, thereby preserving the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Service be, and hereby is, authorized to modify and extend rental agreements with Premier Truck Sales and Rental, Inc., 7700 Wall Street, Cleveland, Ohio, 44125, for the rental of refuse collection trucks in an amount up to $1,000,000.00.
SECTION 2. That the expenditure of $1,000,000.00, or so much thereof as may be needed, is hereby authorized in the General Fund 1000 (General Fund), Dept-Div 5902 (Refuse Collection), in Object Class 03 (Purchased Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
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.